I just e-filed my taxes and am very proud of myself. Today I got a text from my union saying hey we can’t find your 1099. Oh crap. I completely forgot that I received a stipend to send me to a conference. I can write off the hotel and flight but I will still owe some tax on it. What do I do?
You can amend your filing:
Amend your return, form 1040-X. There is absolutely no penalty if you do so before April. You can offset the 1099 by also including a Schedule C listing reasonable expenses.
Depending on what service you used, you may be able to e-file or have to mail in a paper amendment.
That’s what I thought. I assume I send a check with mu 1040-X
If the recalculation shows you now owe taxes (or more taxes), yeah, that would make sense.
If the amount is small enough not to affect the amount owed, are you still expected to file an amended return?
According to the IRS
Taxpayers expecting a refund should not file an amended return before their original return has processed
so you might want to wait.
I’m going to owe a few hundred ducats so i will wait until early April.
Anyone know off hand if TurboTax will do the 1040X?
If it’s like a $12 1099-INT, multiple accountants have told me don’t bother, the IRS doesn’t care. YMMV, do it if it makes you feel safe.
Yes they do, whether it’s free or a charge depends on what plan you used to file in the first place. 1040-X is pretty easy to do by hand with fillable forms for free though. Basically one column for the info as files, a second for changes, and a third for the difference/summation.
NOTE: if you mail it, you may have to send it to a different address than the original return.
And if the amendment changes any state taxes, you’ll amend that one too.
I just calculated it and I’ll owe a few cents under $100 but it is a $2500 stipend with $2100 in expenses I have receipts for so if I don’t do it, I know it’ll come back to haunt me.
Given this last post …
Yes, you need to file 1040X. Yes, TurboTax can do it. Yes, it’s very easy.
IF due to the amendment you will owe more tax AND you expect a refund based on the return you already filed, THEN wait until after you get your refund to file the amendment.
When 1099 is issued, as far as the IRS knows it’s $2500 in pure profit, so yes you need to do a Schedule C. Same thing if you sell stock, as far as they know it cost you $0 to get, so you need to report the cost basis.
Moderating
Since this involves a real-world situation and isn’t just a factual question about tax laws, let’s move this to IMHO (from FQ).
This will happen. File a Schedule C. I can’t tell you the rules for an amended return prior to the original being processed but hopefully you can get it filed before the ides of April and avoid penalty.
Thankfully OP has already avoided the worst penalty by filing on time, it’s much better to file or extend and worry about the complete information later. As long as you don’t put in completely fraudulent information, that is.
So maybe this is more a TurboTax question than specific to my issue but I’ll try anyways.
I did not file my state taxes because the ‘legal’ forms were not out yet. Should I
Save my current 1040 as a PDF. I do anyways for convenience later on.
Enter my 1099 and Schedule C so that my state taxes will be correct although now my TurboTax Fed info won’t match what I sent the IRS.
File my state taxes based on TurboTax
Have TurboTax create a 1040X and sent the IRS a check for $100
Why not just maintain the unfiled return in TurboTax for a while longer until the final official forms are released? Every time I open the program it checks for updated forms or other changes.
They were released Jan 31st for my state and I still have yet to get my 1099. I just don’t want to have to do an amended return with my state as well and I can wait on that refund for a while.
I would be cautious about filing the state and federal forms on a different income.
In at least some states, you need to provide the first couple pages of your federal 1040 along with your state return. So the state can compare the reported figures. Even if in your state you don’t have to submit part of your federal 1040 to the state, they may well be able to check behind the scenes.
You will find that doing the amended return is easy. And that TT has thought of the reality that an amended Federal return usually results in the need to amend the state too. So you’ll probably find that the “extra effort” is a couple more pages come out of your printer.
Faced with your situation, I’d rather print those extra pages and spend an extra postage stamp to file a state amended return than run the risks of the feds or the state noticing and fussing about the discrepancy between your original federal and state returns.
IMO YMMV.
A possible exception is if you can file the federal amendment, and get an acknowledgement back that they’ve processed the amendment, then file the state with the amended 1040. IME the acknowledgement of the amendment is often months in coming. If so, you’d need to get an extension to file the state some time this upcoming fall. That’s probably a cure that’s worse than the disease.