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Personal Finance (Not Investing) • How best to make up for the failure to file a tax return

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In 2020, my then teenage son did some work for a college and received a few thousands dollars of compensation. He received a 1099-NEC form. We mistakenly thought that his income was below the filing threshold so did not file his tax return. We only recently realized that the amount reported on a 1099-NEC form was classified as a self-employment income, which has a much lower reporting threshold of $400.
How best to fix the problem?
Just file a return now. He has (generally) 3 years past the due date to file a return. Normally, this would be April 15, 2024. But the deadline for 2020 was originally extended to Monday, May 17, 2021 so that might give him another month. But I'd go ahead and just file before April 15th. If he owes money (not likely if this was his only income) there'll be some penalty and interest.

Freetax USA will file a federal 2020 return for free. State is 17.99, or you can probably just do that on your state's website.
He can file a return whenever. Interest on any tax due is continuing to run, but there isnt any hard deadline here - its not an amended return scenario where you would only have three years to file before the statute closes. The statute of limitations doesnt start if a return is never filed. People have filed 20 years of returns at times.

Statistics: Posted by soxfan10 — Thu Mar 14, 2024 9:45 pm — Replies 31 — Views 1608



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