What do you do if you receive a late 1099 form, and already filed your taxes?

Question

My girlfriend received a late 1099 after filing her taxes. She wasn't expecting this form because it was for two "free" plane tickets that she won off of the radio. Why should she have to claim this "$800 prize" on her taxes as income? If we used the tickets to fly from Denver to Phoenix round trip, the prize is only worth $300. I thought you only had to claim "winnings" if it's more than $5,000. Anyway, what does she need to do if she's already filed her taxes?

Answer 1

She'll have to file a form 1040x and amend the return before April 17 to avoid any penalties and interest on any money you may owe.

If she recieved a 1099 the IRS did to and they will evenutally see that the 1099 wasn't filed, my suggestion is reguardless of the amount still file the amended return.

Answer 2

It's taxable as ordinary income. You have to pay tax on the amount on the 1099. There's no exclusion for winnings of any amount. Some winnings are exempt from withholding but the full amount is always taxable.

She needs to file an amended return on Form 1040X and pay the additional tax due by April 17, 2007.

Answer 3

All you need to do is file an amendment to report your income on your 1099 Misc. The good thing is that you can list some deductable expenses to lower the amount of money you might need to pay. Tip list mileage that will help you. List any expenses . Usually, where you file your income taxes would be the place where you will need to file your amendment. If you did it yourself than you would have to do it or you can take it to a CPA or income tax place where they might be able to do it for you and charge you about the same as a regular income tax return.

Answer 4

This happen to me in 2005 and in 2006 I had to pay back the IRS $900. although my 1099 was for $3000. you can't hide from the IRS. As for H&R BLock not a good source I used them and if the person who helped me knew what she was doing I wouldn't of had to pay the IRS $900.

Answer 5

She needs to file an amended tax return form called the 1040X. Here's the link:

http://www.irs.gov/pub/irs-pdf/f1040x.pdf

Answer 6

Amend the return! It you don't you will get a letter from the IRS (& state) about unreported income and the interest charged if taxes are owed.

Answer 7

with it being that little it shouldn't make a difference, H & R block is good about assisting with that and consultations are free. I believe the winnings have to be over $5000 before claiming I'm not 100% sure on that amount though.My friend won enough she had to claim and I think thats what she said

Answer 8

I would throw it away. But, that is me. It's too small of an amount to bother with. Put the date you received it on the 1099 and put in your tax papers. This is not the law by any means. You can file an amended return.