I have received a corrected 1099 form. How will this affect my tax return?

This year’s tax payment deadline is April 15th. However, you may have decided to file your tax return early so your tax refund can be deposited into your bank account faster. This may be more than feasible if you have all your tax forms ready.

But what happens if it’s been a few weeks since you filed your taxes and you’ve been notified of a revised 1099 form? Your first inclination may be to ignore it. But that’s not the right decision at all.

You will need to process a corrected 1099 form.

You may receive a 1099 form for a variety of reasons. A 1099 form from your bank typically summarizes the interest income you earned in the previous year, while a 1099 form from the company you worked for summarizes your freelance income.

Whenever a 1099 form is issued, you will receive a copy, but so will the IRS. Therefore, it is important to report the income listed on your 1099. Otherwise, the IRS will likely find out about it, and you don’t want to risk being penalized for failing to report your income.

Likewise, once you receive your corrected 1099 form, the IRS will receive a copy as well. It is important to update your tax return to reflect the information contained in your revised 1099 form. You can do this by filing Form 1040-X, Amended U.S. Individual Income Tax Return.

Now you may be thinking, “Well, that’s not fair. I’ve already done the work of filing my tax return, so why do I have to do more work?” And you’re right. that is It’s kind of unfair that someone else’s error costs you extra work.

However, if you do not amend your tax return, your income may be underreported. And if you pay the wrong amount, you may be fined. Plus, modifying your 1099 could result in a larger tax refund. So failing to amend your tax return could mean denying yourself the money you owe.

You may not want to file your taxes too early.

Tax filers are encouraged to file their returns as early in the season as possible, but there are downsides to doing so. The earlier you file your taxes, the more likely you are to complete the task before your corrected 1099 form is issued.

Therefore, going forward, it is recommended that you wait until March to file your taxes. Companies must file their 1099 forms by January 31st. However, if you wait another 4 to 6 weeks to file your return, you’ll have much more time to make sure your corrected 1099 form is submitted. The hassle of having to amend your tax return.

You may also receive a 1099 form that contains information that is not appropriate for you. If so, you may want to consider contacting the issuer to follow up. However, in this case it may take several weeks for the issuer to issue the corrected form.

So, although filing your taxes early is a good thing, ~ degree They may come back early and bite you. You cannot cancel any early submissions you have already made this year. However, consider adjusting your strategy for future tax years to avoid the work associated with amending your tax return.

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