Forgot to Check the Spouse Box on 1099-MISC

[Chowdahead]

Well this was bound to happen to me at least once I guess. I had a rollover client from last year and the husband was first on the return and his spouse second.

She received a 1099-MISC for about $700 and I forgot to check the spouse box, so the 1099-MISC and Schedule C input sheet was transmitted with his name on it. There were no expenses on the Schedule C.

I realized after I sent it, and all of a sudden had a bad feeling and I opened the return to check it and realized the mistake. I did double check the return before I sent it but apparently I only checked the W-2 inputs. I am very paranoid about this happening and that's why I usually scrutinize married jointly returns even more.

How do I fix this? They are planning on filing an amended return in several months anyway because the will be purchasing a house and will be claiming the first-time home buyers credit.

But in filing an amendment, there is nowhere on the 1040X to change this type of thing, since the amounts are all the same, but only the "payee" is changing. I was thinking of calling E-Services or the Practitioner Priority Line and seeing if they could do it over the phone, but they are hit or miss depending on who you get....

Any thoughts?

[jasdlm]

It's not going to change the tax (unless he is already over the FICA limit). The only other problem would be a mismatch generating correspondence which you could then respond to. What am I missing?

[imjulier]

I agree with jasdlm. I don't see any issues here unless you have to respond to a notice....

Julie

[GLJEANNE]

Are you concerned about the Social Security being credited to the right person? It would be such a minor amount, I wouldn't worry unless the spouse has generally been low-income.

[kcjenkins]

How do I fix this? They are planning on filing an amended return in several months anyway because the will be purchasing a house and will be claiming the first-time home buyers credit.

But in filing an amendment, there is nowhere on the 1040X to change this type of thing, since the amounts are all the same, but only the "payee" is changing. I was thinking of calling E-Services or the Practitioner Priority Line and seeing if they could do it over the phone, but they are hit or miss depending on who you get....

Actually, you are wrong about that, the payee changing is going to change the name on the C or C-EZ that you used, and that will change the name on the SE. So you attach the new forms, and explain on the page 2 of the 1040X. And perhaps include the 'old' C and SE with zeros clearly marked in red 'CORRECTED', as well.

[JohnH]

You could attach separate Schedule C's and SE's to the 1040X with an explanatory note in the appropriate section. That should take care of it. The 1040X instructions say to attach any schedules which show changes.