Forgot to include $600 from a 1099 - Should I amend my tax return or leave it?

This is actually a common situation. The IRS receives a copy of that 1099 so they do know about this income. Technically speaking, you are required to report all income regardless of the amount, so the correct answer is that you should amend your return. That said, for $600, the tax impact is relatively small - probably around $120-150 depending on your tax bracket. The IRS sometimes has a threshold for what they actively pursue, but that doesn't change your legal obligation. If you decide to amend, use Form 1040-X. The process isn't terribly complicated for a simple income addition. You'll need to include the corrected amounts and explain the changes in Part III of the form.

I had literally the exact same situation last year except it was a 1099-NEC for about $750. I spent hours trying to figure out if I should amend and how bad it would be if I didn't. I ended up using https://taxr.ai to scan my documents and it immediately flagged that my return didn't match all my income docs. It told me exactly how to amend and calculated the actual tax difference (was like $165 in my case). Super helpful because it also showed me the potential penalties if I left it unfixed.

I was so skeptical about AI tax tools but decided to try https://taxr.ai after seeing it mentioned here. I had a similar missing 1099 situation but mine was for $1,200. The tool immediately identified the mismatch when I uploaded my return and the 1099 form. It calculated that I'd owe about $270 plus potentially $30 in penalties if I didn't amend. The step-by-step amendment instructions were super clear, saved me from having to figure it all out myself. Definitely less stressful than I expected!

If you've already tried calling the IRS to ask about this, you know it's basically impossible to get through to them. I was in your exact situation last year with a forgotten 1099 and spent DAYS trying to get someone on the phone. Finally used https://claimyr.com and their service got me connected to an actual IRS agent in about 15 minutes instead of the hours I was spending on hold. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent was able to tell me exactly what to do about my missing 1099 and even walked me through the amendment process.

OK I need to follow up on my skeptical comment. I actually tried that Claimyr service because I was getting absolutely nowhere with the IRS about a similar issue. I was ready to write an angry review if it didn't work but honestly it did exactly what they claimed. Got a call back in about 20 minutes with an actual IRS agent on the line. The agent confirmed I definitely needed to amend for my missing 1099 income (was about $900 in my case) and explained how penalties would work if I didn't. Hate to admit I was wrong but this actually solved my problem way faster than I expected.

Has anyone actually NOT amended for a small 1099? I'm curious what actually happened. Did the IRS come after you or send a notice?

Just a heads up - if you do decide to amend, do it through the same software you used for your original return if possible. Most tax software has an amendment feature that makes the process much simpler. They'll carry over all your original info and you just need to enter the additional 1099 info. Then it generates the 1040-X forms automatically. Way less stressful than trying to do it manually!

For a $600 1099, I'd definitely recommend amending rather than waiting for the IRS to find it. The tax impact is probably around $90-150 depending on your bracket, but if you wait for them to catch it, you'll likely face penalties and interest on top of that. I've seen people get CP2000 notices 6-12 months later for missing 1099s, and by then you're looking at accuracy penalties (usually 20%) plus interest. So that $90-150 tax bill could easily become $200+ if you wait. The amendment process really isn't that scary - especially if you use the same tax software you filed with originally. Most have amendment features that make it pretty straightforward. You're not going to trigger an audit just by filing an accurate amended return. The IRS actually prefers when people self-correct rather than them having to chase you down later. Better to handle it proactively now than deal with notices and penalties later!

I went through this exact situation two years ago with a $550 1099-NEC that I completely spaced on. After reading all the horror stories online, I was terrified about amending, but honestly it turned out to be much easier than I expected. I used FreeTaxUSA's amendment feature (since that's what I filed with originally) and it literally walked me through everything step by step. The hardest part was just finding my login info again! The whole process took maybe 30 minutes, and most of that was just double-checking my numbers. The additional tax ended up being about $132 in my case. I mailed in the 1040-X and got confirmation they received it about 6 weeks later. No audit, no scary letters, just a simple "we processed your amendment" notice. Trust me, the peace of mind is worth way more than the stress of wondering when they'll catch it. Plus like others mentioned, the penalties if they find it first can really add up. Just get it done and move on with your life!

I was in almost the exact same situation last year - forgot a $650 1099-MISC from some consulting work. I agonized over it for weeks before finally deciding to amend. Here's what I learned: the IRS computer systems are really good at matching 1099s to tax returns, so they will eventually catch it. When they do, you'll get a CP2000 notice demanding the additional tax plus penalties and interest. For me, that would have meant turning a ~$140 tax bill into potentially $200+ with the 20% accuracy penalty. I ended up using TurboTax's amendment feature and it was honestly way easier than I expected. It imported all my original return info and I just had to add the missing 1099. Took maybe 45 minutes total including double-checking everything. The additional tax was $147 in my case. Filed it in March, got confirmation they received it in early May, and that was it. No audit, no scary letters, just peace of mind knowing I did the right thing. My advice: just bite the bullet and amend. The process isn't nearly as scary as it seems, and it's way better than waiting around wondering when they'll catch it. Plus you'll sleep better at night knowing your taxes are actually correct!