Today TaxMama® hears from Chuck in the TaxQuips Forum, with this question. “So I received a 1099-MISC after I filed my taxes last year. (Yes I jumped right out there and got ‘em done and in.) What do I need to do to now so Uncle Sam doesn’t come looking for me? Ahem… file a revised tax return? How do I go about doing that? Would it be better to mutter through it myself, or take this issue to someone that charges to do these things?”
If it was for a lot of money, I would file an amended return with both the IRS and your state. After all, you’ll be paying self-employment taxes, in addition to income taxes.
The sooner you pay it, the better.
If it was a small amount (you decide ‘small’ or ‘large’), let it go. The IRS computer will send you a CP-2000 notice with a proposed assessment. Just pay it. Then file the amended return with your state.
Can you do it alone? What software did you use last year? They probably have a 1040X version for you to use. If not, TaxSlayer does. Ideally, do it through the software you used last year. Call their tech support line for assistance if you need it.
For this year,
a) slow down and wait for all W-2s and 1099s to arrive.
b) DO BOOKKEEPING! If you’re freelancing like that, it’s your responsibility to keep books and records. Other people sending you 1099s is NOT your accounting system. (I could spank you.)
If you need a good system, you can use FreshBooks, OutRight or QuickBooks Online*.
They all have mobile versions of their apps to make it really easy for you to track transactions all day long. In fact, as I am looking at this, I found that Intuit even offers something called GoPayment that allows you to accept credit cards on the go. And integrate the payment into QB.*
*These are commissioned links. But, that’s not why I recommend them. They’re terrific, inexpensive options. And they are so much fun! Bookkeeping is more fun than ever!
And remember, you can find answers to all kinds of questions about operating a business and other tax and business issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed version of TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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