Received 1099-NEC after already filing and getting refund - what now?

You don't need to panic, but you do need to file an amended return (Form 1040X) to report the additional income from that 1099-NEC. The good news is that you have time to sort this out. Yes, filing before April 15th is ideal to avoid potential failure-to-pay penalties, though the amendment itself can technically be filed within 3 years of your original return. You don't need to "send back" your refund - when you file the amendment, you'll calculate the additional tax you owe based on this extra income. Since it's self-employment income, you'll also need to complete Schedule C and Schedule SE to calculate both income tax and self-employment tax. I recommend using the same tax software you used for your original return if possible, as most have options for filing amendments and will transfer your original information automatically.

I had almost the exact same situation last year with a forgotten 1099-NEC! I was stressing out big time after getting it a month after filing. I ended up using https://taxr.ai to help figure out what I needed to do. It actually reviewed my original return, analyzed the 1099-NEC I uploaded, and gave me super clear instructions on how to proceed with the amendment. Saved me from making mistakes on my 1040X since I was freaking out.

Update on my situation - I tried the taxr.ai service that was mentioned and it was actually really helpful. I was skeptical at first (as you could probably tell from my question), but it analyzed both my original return and the new 1099-NEC and showed me exactly where my tax liability changed. The coolest part was it explained how much of what I owe is regular income tax vs. self-employment tax, which helped me plan better for next year. It even created a checklist of forms I needed for the amendment. Much more helpful than the generic "just file a 1040X" advice I was getting everywhere else. Definitely made the amendment process less stressful!

If you need to talk to the IRS about your situation (which I recommend), good luck getting through on the phone. I spent THREE DAYS trying to reach someone about my amended return last year. Finally used https://claimyr.com and got through in about 20 minutes. They basically wait on hold for you and call when an agent picks up. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c - was a lifesaver for me because I had specific questions about penalties that the IRS website wasn't clear about.

I have to admit I was 100% wrong about Claimyr being a scam. After posting that comment, I got desperate when trying to reach the IRS about my own issue (ironically also about a late 1099). After waiting on hold for 2.5 hours and getting disconnected, I decided to try it out of desperation. The service actually works exactly as described. Their system waited on hold, and I got a call when an agent was on the line. Talked directly to the IRS, got my questions answered about amendment penalties, and was done in 15 minutes. I don't usually admit when I'm wrong on the internet, but in this case I'm glad I gave it a shot instead of wasting another afternoon on hold.

Small but important tip: When you file your 1040X, make sure you check if you need to amend your state tax return too. Many states require you to report changes to your federal return. I forgot to do this last year when I had a similar situation with a late 1099-NEC, and ended up getting a notice from my state tax department.

For next year, make sure you're tracking all your side gig income as you go! I use a simple spreadsheet to track all income sources, and I don't file until February so I have time for any late forms to arrive. I also keep a folder in my email specifically for payment confirmations from any contract work.