Kea Posted May 17, 2013 Report Share Posted May 17, 2013 Client filed return claiming $1000 Misc income from helping a friend with odd jobs at their apartment building. After he filed return, he received 1099 Misc for $700 from the friend. I had included the income on line 21 but without any reference to a 1099Misc. Since this activity did not rise to the standard of being a business, I did not report on Sch C. Does the return now need to be amended to acknowledge the 1099? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted May 17, 2013 Report Share Posted May 17, 2013 Only if he earned $700 plus the $1,000 he reported. If the $1,000 included the $700 and if it really was not a for-profit business, then you're done. But, I can see an IRS letter re SE tax in his future. 1 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted May 17, 2013 Report Share Posted May 17, 2013 Agree. He reported more than the 1099 was for. It did not rise to the level of a business. Be ready for the letter from the IRS seeking SE tax, but do nothing right now. Tom Hollister, CA 1 Quote Link to comment Share on other sites More sharing options...
Kea Posted May 17, 2013 Author Report Share Posted May 17, 2013 That's kinda what I thought. Just trying to head off any IRS Nastygrams! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted May 18, 2013 Report Share Posted May 18, 2013 WIth over $400, your client is probably going to get that Nastygram re SE. So, just alert him to give it to you when it arrives so you can respond for him. Quote Link to comment Share on other sites More sharing options...
Kea Posted May 18, 2013 Author Report Share Posted May 18, 2013 I already e-mailed him yesterday. Great minds think alike! Quote Link to comment Share on other sites More sharing options...
MsTabbyKats Posted May 18, 2013 Report Share Posted May 18, 2013 If the $700 was in Box 7....I'd amend the return to add a C...and take expenses. It's easier to deal with now than get a nastygram in 2 years. Quote Link to comment Share on other sites More sharing options...
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