I have a 1099-misc for 2007 total of 2000dlls but i haven't done anything with it can someone help me?

Question

I received a 1099-misc form total of 2000dlls for 2007 i already file my 2008 income tax and i didn't added because noone told me i had to. i got paid for some painting i did and some cleaning in that year but i didn't know at the end i was going to get this form. i'm scared because i don't know how much money i have to pay the IRS back...i don't know what to do with that form or where to go can someone PLEASE help me......because i don't want to be penalize for it

thanks

Answer 1

you will get to pay a penalty and some interest. You need to file a 1040x(amended return)as soon as possible(remember to file your state amened return at the same time)

Answer 2

You must file amended tax return.

How you will treat the 1099-Misc income, read: http://taxipay.blogspot.com/2008/03/w2-o...

Answer 3

You'll need to file an amended return on form 1040X showing your total income including the 1099.  You will owe some extra tax on it, and will owe a penalty, but the interest and penalty will keep growing each month you wait, so get it fixed as soon as possible.  On $2000 you are probably talking somewhere around $500-$600 that you'll owe if you take care of it soon.  If you don't have the money to pay, file the amendment anyway - that will stop some of the penalties from accumulating, and they'll set up a payment plan for you.

If you don't file the amendment, you'll get a letter from the IRS telling you that you didn't file this 1099, and estimating what you owe.  This can take a year or two, and by then the interest and penalties will have really added up.  So do it now.