In TurboTax software, is there a feature to attach an explanatory note for a specific content to Form 1040? For example, this year I received a fraudulent 1099-NEC from someone I did not work for, indicating an amount of up to $15,000. Because otherwise, I would have to mail the file, unable to e-file, and I don't prefer mailing the file.
TurboTax provides for entering an explanation where it is required by IRS rules. The IRS does not want explanations that are not required by the rules. The IRS instructions for Form 1040 say "Don't attach correspondence or other items unless required to do so." If the IRS has a question about your tax return or wants more information, they will send you a letter asking for it.
You should include the fraudulent 1099-NEC in your tax return, and enter a business expense of an equal amount to offset the 1099-NEC income. You could enter the business expense with a short description such as "Incorrect 1099-NEC" or "Fraudulent 1099-NEC." Then you can e-file the tax return. If the IRS wants more detail they will contact you.
No. You cannot attach pdf's or notes to an e-filed return. If you want to do that, you will have to mail the return.
There is no such feature, and I don't think even pro software could deal with a fee style note. You'll have to mail it or e-file without the note and then respond to the iRS notice. you are almost certain to get.
TurboTax provides for entering an explanation where it is required by IRS rules. The IRS does not want explanations that are not required by the rules. The IRS instructions for Form 1040 say "Don't attach correspondence or other items unless required to do so." If the IRS has a question about your tax return or wants more information, they will send you a letter asking for it.
You should include the fraudulent 1099-NEC in your tax return, and enter a business expense of an equal amount to offset the 1099-NEC income. You could enter the business expense with a short description such as "Incorrect 1099-NEC" or "Fraudulent 1099-NEC." Then you can e-file the tax return. If the IRS wants more detail they will contact you.
I was looking for something similar to annotate a big change in business income. I'm not sure if there's a way to include a note or explanation in TurboTax (perhaps as details related to one of the line items?).
For your situation: the IRS website says not to include the fraudulent 1099 income on your return. It's not clear if they consider the technique of adding and subtracting a good one:
IRS on employment-related identity theft such as 1099s and W2s
IRS.gov Taxpayer Guide to Identity Theft
Q. It's not clear if they consider the technique of adding and subtracting a good one?
A. It's the closest you can get to attaching an explanation to an e-filed return. Your explanation of the deduction will appear (as a description of your "other expense") in Part V of Schedule C.