topic Re: More questions in After you file

Re: More questions

rjs — Wed, 25 Sep 2024 01:18:26 GMT

You didn't get a 1099 because the payments you received were below the reporting threshold that applied for 2023. You would not get a 1099 for 2023 unless the total of the payments that you received was over $20,000 and you had more than 200 transactions. If any of the payments that you received in Venmo are taxable income, you can report the income on your tax return without a 1099.

Re: More questions

Tech8789 — Wed, 25 Sep 2024 10:20:26 GMT

What happens if I forgot to put the income into the return? Should I let them just figure out the issue and they’ll mail me? Or its worse case scenario?

Re: More questions

rjs — Wed, 25 Sep 2024 13:14:57 GMT

I'm not sure what you're asking. If you already filed your tax return and you omitted some income, you can file an amended return to add the income that you omitted. If you don't do that, and the IRS finds out about the omitted income, they will bill you for the additional tax that you owe, plus interest and penalties.

Re: More questions

Opus 17 — Wed, 25 Sep 2024 16:19:22 GMT

@Tech8789 wrote:

What happens if I forgot to put the income into the return? Should I let them just figure out the issue and they’ll mail me? Or its worse case scenario?

Income taxes are partly on the honor system. If you have income that is not reported to the IRS by the payer, you are still required to report that income and pay taxes on it, using your own accurate personal or business records.

When a 1099 is issued, the IRS computers will look for matching income on your return, and if they don't find it, they will send you a letter and sometimes a tax bill. If the income is not reported by the payer, the IRS computer does not have a specific way to identify you as a tax cheat, but they can and do perform both random and targeted audits. If you are found to have intentionally under-reported your income, you can pay a large fine.