3 days after filing my 1040, I received an updated 1099 with $500 extra income. Do I have to file a 1040X?
joe7253 asked:
And beyond that, I also filed two state returns (one resident, one as non-resident.) Do I have to file those as well? I’ve calculated the net difference for these returns is only $95, $30, and $5 respectively. Is it worth the extra time and effort, not to mention the increased likelihood of audit? Please help! Thanks so much in advance.
ADRIANA
And beyond that, I also filed two state returns (one resident, one as non-resident.) Do I have to file those as well? I’ve calculated the net difference for these returns is only $95, $30, and $5 respectively. Is it worth the extra time and effort, not to mention the increased likelihood of audit? Please help! Thanks so much in advance.
ADRIANA
November 2nd, 2008 at 2:56 pm
You owe tax, you must file the amended returns.
November 5th, 2008 at 2:43 pm
Yes, you are legally required to report all income earned, regardless of the amount, or the effect it would have on your refund. Remember, the IRS also received the same corrected 1099s as you.
And an amendment does not increase your chance of an audit. But a return that doesn’t match the W-2s and 1099s that the IRS receives will!!
November 6th, 2008 at 6:13 pm
Your best bet is to file amended returns for both the Federal and State income taxes. Why was there an updated 1099 issued? Weren’t you keeping records of the earnings that you had for the year? Any person who is earning as an independent contractor must be more diligent than those on wages or salary.