So maybe it’s one of those obvious things everybody knows…
But the saying that income under $600 doesn’t need to be reported to the IRS for taxes is a myth.
I realized this after getting an email from Kindle Direct Publishing stating “your 1099 MISC for royalties is ready for download” …about a week after I already sent off my tax return.
The good news is I doubt there’s a lot of taxes on maybe $50 worth of income. I got $22 in royalties and I sold a few books in person (with maybe $3 profit for each sale, but I have to check).
Royalties on a 1099 MISC are different than the self employed paperwork you have to fill out if you earned more than $400 in your business. And they also make it clear that money you make on side jobs still counts, despite that pervasive $600 myth.
So NOT filing the amendment (since KDP has tax documents prepared) is more worrisome to me than whatever comes of sending in an amended return. I like the idea of showing the IRS “hey, I didn’t include this, but here it is, I’m doing the right thing and just being thorough, please don’t destroy me.”
And with such a small amount, I doubt anything’s going to change…
Other than the way I document whatever profit I make throughout the year. Even if it’s just “coffee money” here and there from selling a book in person, I want to have my ducks in a row.
Ducks in a nice row don’t get audited as often. Or so I hope.
Happy tax season!