Filed my taxes already but just received a form 1099 misc?

Filed my taxes already but just received a form 1099 misc?

Postby spengler » Fri Feb 04, 2011 4:47 pm

My question is I worked for this company where we sold prepaid cards...when we sold them we got points and if you have so many points you were able to turn them in for money so I always kept track of how much money I received it was 1740.00. So when my friend filed my taxes she put that income in the other income box and it took taxes out of it but now I got this 1099 misc in the mail and I realize that she was suppose to use a schedule so is this gonna effect my taxes or what should I do????
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Filed my taxes already but just received a form 1099 misc?

Postby bronsen41 » Fri Feb 04, 2011 4:51 pm

I'm assuming that the money came from the company that provided the cards, correct? If so the money is supposed to go on the Other Income line. As long as you got the amount correct, you did it right and don't need to do anything.

These are knows as "spiffs" in the industry. They are very common in the auto industry and the alcoholic beverage industry but can show up anywhere. The money comes from the manufacturer or distributor, not your employer. As such it's not earned income or self-employment income and goes on Form 1040, Line 21, Other Income. No other schedules are needed.

Some inexperienced tax preparers mistakenly treat this as self-employment income and put it on Schedule C and Schedule SE. That is NOT the correct way to handle them.
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Filed my taxes already but just received a form 1099 misc?

Postby vaughn » Fri Feb 04, 2011 4:59 pm

yes, it will affect your taxes. File an amended return and learn some patience.
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