In 2020, I raised funds for a fellowship abroad. The organization I was going to go abroad with did not collect the funds directly, so I used another organization to collect the funds for me (giving people a tax write-off since it is a 501-c3). That org then payed me using the funds I had raised from supporters. I received a 1099-NEC and did report on my taxes the amount I had received ($21,000). I paid about $2,856 in tax when I filed. This week (2/28/22) I received a letter from the IRS saying I should have put $2,967 under line 4 for Self-Employment Tax and I had put 0. I don't know where the $2,967 came from.
The IRS says I now owe $2,787 plus $74 in interest. I used Turbo Tax to file my 2020 taxes and was honest when answering all questions. I'm confused why I received this from the IRS and if there's anything I can do to contest it. Any help would be appreciated!
I have to respond to the IRS by 3/30/22. Thanks!!
