Filed w2 in 2019, forgot to report self employment income

[themusic1]

I started a small side business in 2019 and failed to report my income. Im am now filing an amended return and it states im going to be getting more money back. I also filed a w2 in 2019. My question is. I have the 2 written contracts for the jobs i did. 1 is for $2400 the other is for $1200. I have bank statements for the money i recieved. 1 being $2400. The other only totals $740 for the $1200 dollar job due to me having to buy materials for it. I no longer have the material receipts. So do i report the whole $1200 or just the $740 on my bank statement?? Also what would be needed for proof just the bank statements and hand written contracts would that be sufficient if they need proof. Thank you for any advice

[themusic1]

Also i have no write offs. This will be my first time doing an amended return is there any other tips or advice. Thank you

[Opus 17]

Well, it sounds like you have $3600 in gross receipts and $460 in expenses for materials, you would report it that way.  You should be reporting these expenses on schedule C and paying income tax plus 15% self-employment tax, so its hard to see how you would be due an additional refund instead of owing something like $800 in tax.  Maybe you are low (or "low-ish") income, and now qualify for more EIC or the Additional Child Tax Credit.  It's hard to know without seeing your return (which I can't and don't want to do). 

In general, when you are self-employed you are expected to keep accurate records of your income and expenses for at least 3 years after you file your return.  Depending on the kind of work you do, you might have deductible expenses for a home office, for travel, or for supplies and equipment, but it's hard to be specific without knowing more.  

[themusic1]

Yes i only made 5000 on my w2 and i did qualify for the eic. So when i started the 1040 it made me receive additional funds from my return. 

[Opus 17]

---

@themusic1 wrote:

Yes i only made 5000 on my w2 and i did qualify for the eic. So when i started the 1040 it made me receive additional funds from my return. 

---

That's fine, at certain income levels, increasing your income earned from work can increase the EIC by more than the tax on the income.  

However, it is a slight audit risk because scammers can use fake work to claim EIC.  You should save documents relating to your self-employment for at least years from when you file the amended return.  Not just proof of payments, but also proof that you did work for the payments, like emails or contacts from the client. 

[themusic1]

Thank you for the reply the proof i have is 2 written contracts with dates. Also bank statement with same corresponding date also have pictures of the checks with clients name on check from the bank. Would that be sufficient?

[themusic1]

Also when i mail in my amended return should i include copies of these documents or should i wait untill they ask

[Opus 17]

Wait. Don’t send any documents not specifically required to be attached.