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Plans and Taxes

February 9th, 2019 at 06:26 am

Except for walking across the street to babysit, I stayed inside all day yesterday. Today it is a bit warmer, but still cold. I plan to get out anyway and hit the gym and get some gas. I also need to get an oil change, but I'm not going to try it on a Saturday, so that will be deferred till Monday.

You tax experts out there -- I realized yesterday that I forgot to claim some income. I closed my old Sharebuilder account last summer, and just yesterday I got notification that my 1099 was ready. I really, truly forgot about this. The income is about $171. My federal and state income are already filed and I already got my federal refund. What do I do? I looked at the TaxAct site (which I used for filing), and it recommended waiting till all refunds are made before filing an amendment. But is an amendment necessary for this amount? My income is very low and I don't think this small amount will actually affect my tax bracket. Anyway, I want to do the right thing.

4 Responses to “Plans and Taxes”

  1. creditcardfree Says:

    To do the right thing you file an amendment by April 15 preferably. Likely you will owe just a few dollars, unless your tax liability is zero and they refunded you all your withholding already.

  2. Dido Says:

    The "right thing" is to amend your return. The additional income won't affect your tax *bracket* but it could affect your *taxes.* If you are in the 10% bracket, you could owe 10% or $17; the 12% bracket 12% or$21. If you had caught it before you got your refund, the additional income would have reduced the refund received, but since you are already in receipt of a refund, you were overpaid, and need to the overpayment back.

  3. Dido Says:

    Also, better to do it now than to receive one of those "CP-2000" letters from the IRS come June. The 1099s are matching forms, with a copy sent to you and a copy sent to the IRS, and the IRS computers run matching protocols and if they have evidence of income from a 1099 that isn't reported, the computers spit out one of those letters. No one likes getting letters from the IRS!

  4. CB in the City Says:

    Thank you. I will file the amendment, but I will wait until the state refund is made, as TaxAct suggests.

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