Suggestions?

I have already done my 2010 taxes. I used turbo tax, filed 1040 long and e filed. Due to the schedule A I am in the category that mine won't even be submitted to the IRS until Feb 14. So my stuff is sitting in received by Turbo Tax status. Meanwhile I received a 1099 misc. from a casino for $825 since then that I totally forgot about. The reason it is a 1099 misc. is because it is from contest/drawings. I contacted Turbo Tax by phone and they said there was no way to retrieve my stuff once it has been transmitted as it is in a secure location waiting for the 14th of Feb. They suggested I just let things take there course and once I receive my refund from the Govt. to file an amended return for the $825 and pay whatever difference I owe.

Agree???


Other suggestions???

If you have access to a copy of your return I would go ahead and do an amended return and mail it with payment as soon as the efiled return is sent. This would keep you from paying extra penalties and interest while you waited on them to catch it (could be months). In the explanation portion of the amendment just describe the situation along with the line numbers and forms that were affected. You have to do this for both the federal and state if you live in a state that requires a tax return.

Quote: thlf

I have already done my 2010 taxes. I used turbo tax, filed 1040 long and e filed. Due to the schedule A I am in the category that mine won't even be submitted to the IRS until Feb 14. So my stuff is sitting in received by Turbo Tax status. Meanwhile I received a 1099 misc. from a casino for $825 since then that I totally forgot about. The reason it is a 1099 misc. is because it is from contest/drawings. I contacted Turbo Tax by phone and they said there was no way to retrieve my stuff once it has been transmitted as it is in a secure location waiting for the 14th of Feb. They suggested I just let things take there course and once I receive my refund from the Govt. to file an amended return for the $825 and pay whatever difference I owe.

Agree???


Other suggestions???

Hmmm ... $825 doesn't sound like something the govt would sweat you over, but if it's something you want to do as a citizen, then yeah, you can file an amendment some time before, I think, October 15. It's a little bit of a pain, but it will do the trick. The form is 1040X if you want to preview it. You coudl probably fill it out now and wait to submit it until you get your refund.

oh, if you have to pay someone to do the amendments I would just wait for them to send you the bill plus penalties and interest and not worry abotu the amended returns.

Quote: clarkacal

oh, if you have to pay someone to do the amendments I would just wait for them to send you the bill plus penalties and interest and not worry abotu the amended returns.

For an amount so small and your timeliness and the fact that amended returns aren't due until Oct 15 ... hell, your taxes aren't even due at all until Apr 15 ... I don't think there's a chance in hell you'll have to pay a penalty. And if you did, it would be on the order of a few bucks. My last tax penalty, involving underpayment throughout the year, was about $12, and that dealt with an amount far, far greater than $825.

You would owe whatever incremental tax would accrue on those winnings. However, if you had gambling losses that you hadn't offset, you could use those to reduce or negate your tax liability on the $825. The only real time to sweat it would be if you had already reported net gambling income for the year; then your additional tax liability from the $825 would be something in the neighborhood of $150-250 (I have no idea what your tax bracket is), so you wouldn't want to let the amended return slip past the April 15 deadline, because there would be accrued interest, and eventually a penalty as well, on the unpaid tax liability.

The good news is that you should receive your refund in plenty of time to do that.

I already have claimed gambling losses against winnings. However since this is on a 1099misc. not a 1099G I don't have to claim it as gambling winnings. I would rather not bring any more attention to that area at this point. I would just do the ammended and add $825 in misc. income. The one question in my mind however is how big of a deal is it if I do nothing? I am under 10% tax bracket after deductions. I have no state (NV) filing. So it's only about an $80 mistake in the end. But how frantic is the IRS if they see the mistake, and will they definitely see it at all? I would prefer to stay off of their radar.

IF, they sent you a 1099-MISC, instead of a W-2G, then it has nothing to do with Gambling.

Unless you won the Church lottery and they reprted to the IRS on the 1099-MISC and used the "prizes" box.

If you are in the 10% bracket, then you would owe $82. If its on 1099-MISC in Box 7, you would owe FICA and Medicare tax of an additional $124 +/-.

So, file your 1040x by April 18th. That avoids any additional penalty and interest. (If you owe any already, that doesn't change.)

IF it is gambling income, then the 1040x can include the addtional income, and the additional gambling losses that you haven't claimed yet, and it doesn't cost you anything....

Don't file so early next year.

SFB

Thanks SFB. This raises a good question as well. The $825 is contest winnings hence the 1099 misc. However all of the contests required me to earn points on my player card first in order to be eligible. Does that qualify it for gambling winnings and to be offset by gambling losses?

thlf:

If the 1099 was issued by a casino, and you earned them gambling, then report it as such.

Your going to argue about $82 in any case.

SFB