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4 Answers

What happens if I don’t file 1099 form?

Asked by: allcreaturesvh 2315 views YA Discussion

I am 19 years old, senior in high school, and am a YouTube Partner. Basically I made $ 9,500 in 2012 by making videos on youtube. The thing is my parents don’t know about this and I don’t know what to do. If I tell them they are going to freak out, force me to pay bills, and probably even make me pay them. In 2011 they did the same thing but I only made $ 600 so my parents didn’t think much and filed it under my name.

If I just ignore the 1099 form that arrives, will everything be ok?

I am just not experienced with this stuff and have never done this before. If I file on turbotax.com can I write my tax returns. For example, I specifically bought a $ 800 camera just for the equipment for my videos. New video editing software: $ 200. Can i do this?

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4 Answers

  1. Caroline on Jan 03, 2013 Reply

    Yeah, because ignoring stuff always makes problems magically disappear.
    If you don’t file the 1099, the IRS will send you a notice saying you owe taxes based on your tax rate and based on the 1099 that they received as information from the company that sent the 1099 to you.
    My advice is to tell your parents. I don’t think you have enough knowledge or wherewithal to file your own tax returns.

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  2. tro on Jan 03, 2013 Reply

    no if you ignore it IRS will in the future contact you about failing to claim this income and they add penalties and interest which will make the problem worse
    file this income on Sch C, and you will owe self employment tax as well as some income tax since this exceeds your standard deduction of $ 5950
    the expenses you claim are those related to the business, they have to have a business purpose, it would appear that your equipment if primarily for the business but those items could easily be considered personal, you might to prove you do not use them for personal use
    the software absolutely is a valid expense

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  3. rick on Jan 03, 2013 Reply

    You can’t ignore the IRS because they will get a copy fo the 1099 whether you file it or not. Let’s see, you’re 19 and must be living at home because your parents “might ask you to help out” with some bills… You’re an adult, act like one. Either move out or help your parents if they need it. You want to cheat the government and your parents at the same time.

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  4. Bostonian In MO on Jan 03, 2013 Reply

    What happens if you ignore it? Nothing good, that’s for sure.

    Sometime later this year, typically around the holidays, you’ll get a bill from the IRS for the taxes that you owe, plus penalties and interest. If you didn’t file at all, expect a 25% failure to file penalty. If you did file but omitted it, expect a 20% accuracy penalty and possibly a fraud penalty of up to 50%.

    If you did actual work to generate this income (as opposed to just an AdSense income stream) this is self-employment income and you’ll owe about $ 1,167 in self-employment tax and about $ 221 in income taxes if this is your only income for the year.

    You might be able to reduce the tax bite a bit by depreciating the business use of the camera if you kept accurate records and amortizing the cost of the software.

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