Originally Posted by angelena
#1;i filed my tax for 2012 only for 1099G and unemployment (i have received unemployement compensation till May 2012). i forgot i had income of $3,800 in August 2012 as i didnt receive 1099-misc. IRS sent me a letter that this income was not reported. This was commission i provided a service as business consultant. when i filed my tax, i didnt have any 1099-misc income, i didnt claim any business expenses deductions.
is it ok to attach schedule c for my business expenses deduction as well as 1040x to amend?
#2; my expenses are easily go up to $3,800 as I went to Japan to conduct this service (no per diem was reimbursed from the company i provided a service) and I want to report per diem + some non reimbursed mileage, office supplies, tel / internet expenses. at the end, my tax has no change. but i need to pay interest...? that is shown on the letter they sent. It was only $30.00 or so... Please advise me....
#1;I guess so aslongas you incurred your consultant biz related expenses, you need to file and attach Sch C with your 1040X;however, aslongas the amoun ton Sch SE line 3 is also $400 or exceeds $400, you must pay self employment tax and deduct 50% of the expenses on line 27 1040. ALSO, remember; you need to pay quarterly estimated tax if you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.However, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year
;You were a U.S. citizen or resident for the whole year; Your prior tax year covered a 12 month period.
Note; aslonhas you recieved my first 1099-MISC and it will be the only one you get and If on the other hand, there were no expenses related to this income, then you should include this 1099-Misc income on Form 1040 Page 1 Line 21, as Miscellaneous Income subject to self-employment taxes. Thus, subjecting you to a higher income tax on the 1099-Misc income earned, as this income is going be subject to both regular tax rate and S/E tax
#2;u can deduct your biz related travel expense on Sch C; also remember aaslongas the amount on Sch C line 29, 31 is $400 or exceeds $400, then you need to fiel return also UNLESS the amount on Sch SE line 3 is LESS than $400 you do not need to pay SECA tax and you do not need to pay estimated taxes