8

Being audited is probably not as bad a thing as I think it is, but it's also not the first option that the IRS uses when they find a mistake. Often when a form is missing, the IRS will send a letter with a proposed change to your taxes. They will make the correction to your form, and you can either respond to that letter with a check (if you owe money) or ...


7

Yes, it means you can (and, usually, should) claim an exemption for yourself as long as no one else can claim you as a dependent. You're not claiming that you are your own dependent; you are claiming your personal exemption (if you can). Ultimately, you are claiming exemptions. You get to claim an exemption for yourself if no one else can claim you as a ...


6

The IRS is not actively enforcing the health care mandate this year, so don't worry about it. If you had health care, it is not actionable anyway.


6

If the change in income on the 1099 is so small that the tax owed doesn’t change, I wouldn’t bother. However, If we are talking about a 1099-NEC for your business, I just want to point out that you are supposed to report all income, whether or not it appears on a 1099-NEC. Ideally, you keep your own records, and then your return doesn’t change even if there ...


5

It seems that you think you are freelancing, and they think you are an employee. What's bad for you, the tax office will also think you are an employee if they withhold tax for you. Alternatively, they think you are stupid, and they keep the money, but are actually not paying it to the tax office at all, in which case you will have a bad surprise when you do ...


4

Short answer: Yes. For Federal income tax purposes, you are taxed on your total income, adding up positives and negatives. If business A made, say, $100,000 while business B lost $20,000, then your total income is $80,000, and that's what you'll be taxed on. As @littleadv says, of course any business losses you claim must qualify as business losses under ...


4

I agree with your strategy of using a conservative estimate to overpay taxes and get a refund next year. As a self-employed individual you are responsible for paying self-employment tax (which means paying Social Security and Medicare tax for yourself as both: employee and an employer.) Current Social Security Rate is 6.2% and Medicare is 1.45%, so your ...


4

It is already too late to do anything to receive either of the two 2020 stimulus payments. If you are eligible for the stimulus payments based on your 2020 status, and did not receive the payments in 2020 (or did not receive everything that your 2020 status makes you eligible for), then you will get the appropriate amount as a tax credit on your 2020 tax ...


3

The question reads "could", not would for a reason - you don't have to include him as a dependent if you don't want to, but if you are allowed - he cannot claim the exemption. So yes, he has to amend and fix it whether you actually claim him or not. If you do claim him, it will be very easy for the IRS to notice the discrepancy and come to him asking ...


3

You need to file an amended return with the IRS. You can find details here. I believe you'd file the 1040X and the NR. Attach the 1040NR to the 1040X. More detailed instructions can be found here.


3

Yes, you can still file your amended return. The statute tolls with the late filing. Per 1040x instructions: File Form 1040X only after you have filed your original return. Generally, for a credit or refund, you must file Form 1040X within 3 years (including extensions) after the date you filed your original return or within 2 years after the date you ...


3

I'm mostly guessing based on existing documentation, and have no direct experience, so take this with a pinch of salt. My best understanding is that you need to file Form 843. The instructions for the form say that it can be used to request: A refund or abatement of a penalty or addition to tax due to reasonable cause or other reason (other than ...


3

If you fail to check the box indicating you have the required health coverage, you must indeed file 1040X to correct your 1040. I made this exact error on my 2015 1040, and just realized the error, as I recently received a notice from the IRS which reads in part: We show that you didn't address your health coverage on your tax return. Dear Taxpayer: ...


3

This is very unlikely to trigger an audit. The most likely scenario is that the IRS will send you a correction letter, stating that there was a discrepancy between the amount you reported and the amount reported to them. They should also either send you a refund or request payment if you owe them more money -- they will calculate the tax due based on the ...


3

Yes. You can file an amended tax return (form 1040X) and include the additional files. The Internal Revenue Service (IRS) knows the tax code is complex, and that people make mistakes. It will not be viewed negatively on you. It would be worst if you found out you made a mistake and did not attempt to correct it.


3

What are some typical reasons for a person to get this form? Was it something wrong with the company's taxes? Was it a mistake in the pay roll? The corrected form is to fix a problem. It could be be related to any box on the form. Generally there is issue with what they reported on the original form, and what they should have reported. How do I ...


3

Should I send 1040X together with correct 1040NR to IRS immediately? Or should I wait until IRS has processed my wrong return? There's not really any reason to wait to file an amended return. If you initially had a refund and will owe when you amend, then you might want to wait a bit so you have that refund money in hand before sending it back, but ...


3

Yes, failure-to-file doesn't apply because you did file -- even though you made some mistakes; that penalty is for not filing at all i.e. ignoring or defying the law. (There are some cases where they can treat a facially unresponsive return as not filed at all, but they only do this for the nutcases who file things like "I don't have to pay US taxes ...


3

When filling the Form 1040X column A (Original Amount) should I use the amount as it would have been after applying the first 1040X .... That one's right in the instructions for 'Columns A Through C' (emphasis added) Column A. Enter the amounts from your original return. However, if you previously amended that return or it was changed by the IRS, enter the ...


3

If done intentionally, it would be fraudulent (regardless of how readily intent could be proved). Moreover, the amended 2020 return with increased income would involve recalculating the Recovery Rebate Credit -- line 30 of the 2020 Form 1040. So the excess stimulus would become additional tax due. The stimulus had a phase-out at a 5% rate rather than a ...


3

A frivolous return, roughly, is one that is so unresponsive, erroneous, or ridiculous that it can be presumed to be in bad faith. Sincerely correcting an error, even a minor one, is not frivolous. You do not need to file the updated 1040 itself with the IRS (the 1040-X serves to convey that information).


3

The amount that you just received via direct deposit could be one of two things: First, it could be your actual tax refund. You would know if it is this because the amount you received should be the amount that was on the bottom of your Form 1040 (Line 35a). Yes, if you filed Form 1040 when you should have filed Form 1040-NR, you may have calculated too ...


2

These amounts should appear in the W2 as imported by Turbo Tax. You should be able to go to the "Income" section, and check the W2 as imported there. It should match. If it doesn't - correct it. ESPP-related entry on box 14 in W2 doesn't appear on your 1040 as is, instead it affects the calculations on your Schedule D. It should appear as adjustment to ...


2

If you're filing form 5471 without a EA/CPA who's familiar with it and other related issues holding your hand - you're an insane person. Free assistance you can get from VITA and similar, but they won't be familiar with the "esoteric" forms for the reason them being esoteric and not generally used by their target population (poor old people). As a matter ...


2

It's likely you don't have to make estimated tax payments if this is your first year of contracting (extra income), and your existing salary is already having taxes withheld. If you look at the 1040-ES: General Rule In most cases, you must pay estimated tax for 2014 if both of the following apply. You expect to owe at least $1,000 in tax for 2014, after ...


2

As long as the losing business is not considered "passive activity" or "hobby", then yes. Passive Activity is an activity where you do not have to actively do anything to generate income. For example - royalties or rentals. Hobby is an activity that doesn't generate profit. Generally, if your business doesn't consistently generate profit (the IRS looks at ...


2

There's only one tax treaty (the Indo-US tax treaty). You need to check what else may apply to you (probably nothing else, but you need to check based on your personal circumstances).


2

Yes, you need to file form 1040X, and you need to attach all the forms that changed to it. In your case, you'll need to redo your tax return entirely since the base form you used (1040) is incorrect and you should have used 1040NR. So yes, you need to attach the correct form 1040NR-EZ and whatever schedules (Schedule OI comes to mind, and may be other forms ...


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