Amended taxes to update spouses income?

[TasksGirl 0]

In 2010 I made significantly more than $400 in self employment income and filed the required schedules. We also have regular jobs.

In doing previous tax returns in other years (2008 and 2009) I did not realize that I had to report income from the same activities (Amazon Turk and Amazon Associates in 2009 and just Amazon Associates in 2008) because it was less than $400. I guess I was supposed to put it as hobby or miscellaneous income.

Dumb mistake I know. But now I realize this and I want to amend my taxes to reflect this.

Will me not realizing this and having amended taxes affect my husband's naturalization? The ability to prove good moral character? It was MY mistake. We have also amended 2009s taxes once already because some W-2s that we had forgotten about came late. So 2009 will have been amended twice and 2008 once.

Please help

Thank you.

Edited June 23, 2011 by TasksGirl

[TasksGirl 0]

bump..

[NickD 202]

What can I say, even if you earned a penny assuming you are doing a Schedule C for self employment, that has to be shown on line 12 of your 1040. That $400.00 cutoff only applies to whether you have to pay FICA taxes on your net income. Make a cent over $399.99 and the government takes 14.8% of that.

A thin line exists between say buying something for a buck and selling it for two bucks between earned income and capital gains. If you are an individual, IRS considers that earned income, and even if you don't sell that buck thingy, its profit on your inventory so you have to pay both income and FICA taxes on it. On the other hand, if you are a large corporation with a staff of tax attorneys, the IRS will stay far away, and that buck you spent can be deducted as a lost.

So much for our unfair tax system, that you will have to struggle out for yourself as the rest of us.

If you are a CEO of a large corporation with a 47 million buck private jet that is used exclusively to entertain so-called customers, its a 100% write off. As a private person, if you deducted 51 cent per mile and cannot prove it was strictly for business, you are dead meat. Been on both sides of the fence, as an individual, just bend over and smile.

[TasksGirl 0]

What can I say, even if you earned a penny assuming you are doing a Schedule C for self employment, that has to be shown on line 12 of your 1040. That $400.00 cutoff only applies to whether you have to pay FICA taxes on your net income. Make a cent over $399.99 and the government takes 14.8% of that.

Can you explain this part? 2010 was the first tax year for which I filed out a self-employment schedule. I did not for 2008 or 2009 because it was not over $400. In fact I was mistaken and thought I did not need to include it anywhere at all, stupid mistake, and now I want to go back and include it. But are you saying I need to fill out a self-employment schedule for 2008 and 2009? Don't I just need to include it under miscellaneous income or hobby income since back then it was not over the threshold for self-employment income?

Should I mess with this before his naturalization or after? Will it affect him in any way??

Thanks!!

[NickD 202]

Can you explain this part? 2010 was the first tax year for which I filed out a self-employment schedule. I did not for 2008 or 2009 because it was not over $400. In fact I was mistaken and thought I did not need to include it anywhere at all, stupid mistake, and now I want to go back and include it. But are you saying I need to fill out a self-employment schedule for 2008 and 2009? Don't I just need to include it under miscellaneous income or hobby income since back then it was not over the threshold for self-employment income?

Should I mess with this before his naturalization or after? Will it affect him in any way??

Thanks!!

In my case, my clients are both the government and corporations, they send a 1099 to the IRS, so I better well include every cent as my earned income. 1099's are required by law for any yearly income that exceeds $600.00. If less than that, a 1099 does not have to be sent in. Have some of those, but include that income anyway, damned, I am honest. Ha, more afraid of getting caught.

If for example, you cut grass for your neighbors for twenty bucks, are paid cash, the IRS has no way of knowing about that income, whether you claim that or not is your business. Drug dealers fall in the same class. But for them to claim income from this kind of business would land them in jail. I like to think about all the money the IRS is missing by the government not legalize drugs. But again, these are just examples.

Not really knowing the line of self employment you have, how you keep records, and if indeed your clients are submitting 1099's, as an individual, should be filing a schedule C, and if your net income exceeds $400.00, then you have to file a schedule SSE for FICA taxes. But if no 1099's exist, really no way of the IRS knowing about your income, so what you do is up to you. And no way of the USCIS finding about it either, but again that is up to you. But is sounds like you are the culprit in this small matter and not your spouse. If you want to be 100%, would make amendments to your tax returns if you have filed a joint return and before you send in his application.

[TasksGirl 0]

Thank you very much.. should I be able to pay any additional tax due at the same time as filing the amendment or will I need to wait until they send me a bill?

[I AM NOT THAT GUY 5,715]

Thank you very much.. should I be able to pay any additional tax due at the same time as filing the amendment or will I need to wait until they send me a bill?

Penalties and interest are complex, so wait until they send you a bill. Expect to be audited, as most small businesses are audited in their second or third year after filing Schedule C.

ETA: It may include a lifestyle audit, so be sure to save all those credit card receipts.

Edited June 29, 2011 by Some Old Guy