You should have sought for a professional tax preparer's advice. Any professional would have seen your mistake immediately.
You have your regular w2 form's amount from work. Any additional money you tacked on as additional income, the tax professional would have questioned where this extra money is coming from.
He or she would have identified that you got extra money as a business (you do not need a business license) but you must file this in a different form and pay the appropriate taxes (including social security, medical, and the other business-related taxes). The tax professional would have asked you for possible deductions and you could have deducted all your business income from it.
There's nothing unfair about this. IRS is doing the right thing. It's really your fault for getting a crappy tax professional or for doing your taxes yourself. And to add, tax professionals aren't even that expensive.
You have your regular w2 form's amount from work. Any additional money you tacked on as additional income, the tax professional would have questioned where this extra money is coming from.
He or she would have identified that you got extra money as a business (you do not need a business license) but you must file this in a different form and pay the appropriate taxes (including social security, medical, and the other business-related taxes). The tax professional would have asked you for possible deductions and you could have deducted all your business income from it.
There's nothing unfair about this. IRS is doing the right thing. It's really your fault for getting a crappy tax professional or for doing your taxes yourself. And to add, tax professionals aren't even that expensive.