What Happens If You Get a 1099 After Filing Your Taxes?

Did you file your taxes early hoping to get your refund sooner or just get tax season over with as quickly as possible? What happens if you get a 1099 after you file, and what should you do about it?

This post is provided for general information only. Please confirm the details and circumstances of your unique situation with your tax accountant or other appropriate advisor before taking action.

Option 1: You Already Reported the Income

You must report your income even if you don’t get a 1099, so hopefully you already did. For example, should include any bank interest you earned even if you never got a 1099-INT. If you’re a sole proprietor, all income goes into gross receipts on your Schedule C regardless of if you receive a 1099.

If you included this income already, you’re good to go. There’s a small chance the IRS might have trouble matching the 1099 to your tax return, but all you’ll need to do is show them where you reported the income.

Note: Some DIY tax prep software asks you to input your 1099s and enter income not reported on 1099 separately. This is usually just to make the software easier to use. Generally, you do not file 1099s with your return. The tax software just adds up everything for you.

Option 2: You Forgot About the Income

If you forgot about the income, you’ll need to report it. To do this, you’ll need to file a Form 1040X Amended Return.

First, you’ll need to complete or redo the schedule where the income belongs. For example, for 1099-NEC independent contractor income, you’ll need to fill out a Schedule C or redo your original Schedule C if you filled one out but forgot a client. You can also claim any available deductions related to that income if you didn’t claim them already.

After that, you’ll go through Form 1040X marking what stays the same vs. what’s different and redoing your tax calculations.

What if You Don’t Report the 1099?

If you receive a 1099 for income you forgot to include and don’t report that income, you will receive a CP2000 notice for underreporting your income. The IRS tracks all 1099s and matches them against what you reported on your tax return. Once the IRS computer detects that you underreported your income, the IRS will send you a bill for the additional tax due plus interest and penalties.

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