Had my taxes done at H&R Block, and they said I would get a bigger return if I did'nt use my 1099's.
2007-02-08 02:35:10 · 9 answers · asked by trace27 1 in Business & Finance ➔ Taxes ➔ United States
Yes, it is income and has to be filed. That is why the 1099 form is labeled as income.
2007-02-08 02:39:13 · answer #1 · answered by Anonymous · 1⤊ 0⤋
And this is why I never recommend H & R Block to anyone. I'm sure they probably have some good preparers at some locations, but you obviously didn't find the rare exception. Not reporting income is illegal, to start with. Also, the IRS has matching capabilities for 1099's, 1098s, W-2s and K-1s, meaning that the payor has given that information to the IRS and the government will be looking for it on your return. If it isn't on there, you'll get socked with the original tax due, plus penalties and interest (normally the notice comes several months after the return is filed, but the interest meter starts running at 4/17/07). If the 1099s represent a large portion of your income, you also could be busted for tax fraud.
Find yourself a real tax preparation place before you end up in a big financial mess.
2007-02-08 02:46:38 · answer #2 · answered by SuzeY 5 · 1⤊ 0⤋
Immediately report the idiot at Block that told you that to the manager AND the IRS! If it's the manager, report it to Block's corporate office and the IRS. Any alleged "tax pro" who would tell you that needs to be flipping burgers at Mickey-Ds, NOT preparing taxes and advising tax payers. He or she is a MORON.
As you may guess, you MUST report all income. If you don't report 1099 income, the IRS will be contacting you to find out why you didn't report the income on your tax return. You'll be billed for the tax due, along with penalties and interest for underreporting of income and underpayment of taxes.
2007-02-08 02:51:14 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Short answer: yes. The fact that you have a 1099 means that the entity that gave you that money also reported it to the IRS.
We are required by law to report all income, whether it was reported or not. (I'm not saying we all do, mind you, but that's the law.)
While the person you talked to at H&R Block is probably correct, they should not be telling you to commit tax evasion. The big question is will that extra money you'd get be worth it if you're audited and fined?
2007-02-08 02:46:15 · answer #4 · answered by amberellian 2 · 1⤊ 0⤋
The reason they may have said that is because with a 1099 you have to pay a self employment tax, and if you didnt do any deductions it may end up costing you more. But if the ammount you made is less than 600. I dont believe you have to file it.
2007-02-08 03:24:53 · answer #5 · answered by c_leoo 4 · 0⤊ 0⤋
the 1099's do need to be filed. if you file without it, the irs may summon you to court to correct the difference. the irs does get a copy of that 1099 too, so they will know if you dont file it.
2007-02-08 02:46:00 · answer #6 · answered by swatthefly 5 · 1⤊ 0⤋
You have to use your 1099's on your taxes that's earned income.
2007-02-08 02:39:19 · answer #7 · answered by Jessica H 4 · 1⤊ 0⤋
H&R Block is loosing their face in the public by having these kind of guys working for them as TAX PROFESSIONALS. Anyway they get what they pay for ( $7-$9/hr ) how can they get the best students.
You should report all your income, other wise YOU will be in trouble as YOU are responsible for your taxes not the H&R TAX PROFESSIONAL (!!!) who gave you this advice...
I always support and suggest everyone to take their income tax course, as it is very good. After that you will be prepared to prepare you own taxes and need not depends their TAX PROFESSIONALS!!
2007-02-08 03:51:23 · answer #8 · answered by onlinetaxsiteswatch 2 · 0⤊ 0⤋
1099's are taxable income and must be claimed.
2007-02-08 02:40:27 · answer #9 · answered by P-3 Hoser 2 · 1⤊ 0⤋