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I recently filed my taxes for 2007 and I forgot to add about $1,000 in earnings from a 1099-MISC. The people that paid me just now sent the 1099 and I had forgotten about it. I am supposed to be getting about $5,000 back in taxes. Now what do I do?
I do not itemize on my taxes, not sure if that will change the answer to my question.
I did the same thing one time. The IRS sent me a notice about two years later telling me that I made a mistake and telling me how much I owe them on the 1099 amount. It wasn't much, and I just wrote them a check.
As long as you refile before 4-15-08, you would not file an amended return. A regular return is used which would take the place of your first filed return. In duplicate filings, the latest return replaces the first one.
As long as you refile before 4-15-08, you would not file an amended return. A regular return is used which would take the place of your first filed return. In duplicate filings, the latest return replaces the first one.
This is VERY wrong advice. He needs to file an Amended return. Turbo Tax has the form. Refiling using the original 1040 will mess things up.
I made a similar mistake with a 1099-MISC my husband got last year (I did turbotax and put it down as my income instead of his). I wasn't able to figure out how to fix it through TurboTax so I found the form on the fed website and completed it manually. Anyway, you do have to do that special amendment form. But it wasn't hard to do. Perhaps the customer service folks at the Tax company you used could point you in the right direction.
I believe the "replacement" return referred to by RCACE (IRS refers to these as "superceding" returns) is only available to corporate taxpayers. That procedure is correct for corporations (amend only after the due date of the return, prior to that use the normal forms).
I've never heard of this treatment being available for individuals.
File a 1040x. If you can't figure out how to make the software do it, download the forms from the IRS website... it's not hard to work through the forms. If you file the 1040X before the due date of the original return (April 15, of course), there will be no interest due. If you wait for an IRS notice, you will have interest charges.
The best thing to do is to file a 1040x (amended return). In addition to the tax on the missed 1099 income you will also have to pay SE (self employment tax).
The good news is, you may be able to reduce the impact of the 1099 by deducting any expenses involved in the activity, if any -- do this on a Schedule C.
BTW added income does not always result in a larger tax bill -- some credits, such as EIC and additional CTC can actually INCREASE as income increases.
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File a 1040x
