how to correct 1099 filed wrongly as wages
Hi, I incorrectly, mistakenly, filed my 1040 taxes wrong. I put my 1099 down as wages on line 7. Because of that mistake, I went up to our IRS branch for help. They said to submit just a Schedule C with a letter explaining my honest mistake and ask them to adjust it. So I have a Schedule C but am now totally confused. On part 1, it says to enter “Gross receipts or sales…this income is on Form W-2”. Well, that’s exactly how I messed up in the first place, I put the 1099 there. So how do I fill out this Schedule C for a 1099?
Thank you for all your help. I don’t mean to be a bother.
You’re no bother at all. It sounds like the IRS representative wants you to put your total 1099 income on the schedule regardless of the mistake you made on Form 1040. The proposed solution is to submit a correct Schedule C with a note addressing the error you made on Form 1040. If you have both W2 and 1099 income, be sure to detail the amounts separately in the note. If you want a step-by-step walkthrough of how to complete a Schedule C, check out this article: https://fitsmallbusiness.com/schedule-c-profit-and-loss-form-1040/ . Sometimes, taxpayers have to file an amended tax return to get issues resolved, but it sounds like the person you spoke with gave you another option (possibly to prevent further processing delays). If you find out you need an amended return or just want to learn more about it, visit the IRS site https://www.irs.gov/forms-pubs/about-form-1040x.
Good luck, and let me know if you need help with anything else.