Submitted return, received 1099-nec, but i make less than $14,000

[JackSommers]

I submitted my federal return January 27th, but a few days later, I received a 1099-NEC in the male from my city for a $1000 dollar bonus because I worked a certain amount of hours during the summer. Now, the city is also my employer for the W2, but anybody regardless of being employed by city is able to receive it. That just means that I did receive it from my employer, but someone who worked at let's say, Arby's could have gotten the same exact form from the city. 

When I filed, I didn't have to file apparently, because I made less than $14,000 in 2024, even with the extra $1000 from the NEC. It's around 6.5k for the year. Since the NEC had no tax withholding, I'm wondering if I even need to amend my return, and how I may go about doing that, and how much it may cost me.

[RobertB4444]

The 1099-NEC sounds like it may be taxed as self employment income in which case you do need to file the return because you will owe self-employment tax on that $1000 and you have to file a tax return if your self-employment income is greater than $400.

If you don't think that the $1000 qualifies as self-employment income then there is no need to amend your tax return because the additional $1000 would not change your tax return and - as you point out - you are below the filing threshold anyway.

It may be to your advantage to simply wait.  If the IRS believes that the 1099-NEC represents self-employment income then you will receive a letter in the mail asking you to pay the taxes due for it.  If the IRS does not believe that it is self-employment income you will never hear anything about it and you will never have to worry about it.

Here is how to determine if your income is self-employment income.

@JackSommers 

[JackSommers]

@RobertB4444 

Thanks, I'll wait, I didn't know that the IRS did that. Do you know when I might receive the letter? I know it could be any time, but I just want to make sure that I don't spend the rest of my life wondering about the letter. If I do receive the letter, would I have to file with TurboTax, or will I just pay to the IRS? Thanks.

[RobertB4444]

The letter could arrive anytime from 6 weeks from now to three years from now.  But if you haven't heard anything after three years from now you're probably not going to.

If you receive the letter it would just be a bill from the IRS charging self-employment tax on the full amount that you received.  The IRS would not know about any expenses that you had.  SO you may want to file a tax return at the point that you receive the letter in order to report your expenses and reduce your tax liability.

@JackSommers