I've been filing our taxes using TurboTax for the last several years. My Wife and I ventured out and worked for the summer of 2015 in Alaska processing salmon to help out a family friend. We were paid for our time on a 1099. The family friend told us that Alaska had no state income tax and that we didn't need to claim the earned income on our 2015 return. I recently received a letter from the IRS claiming that we owed north of $3,000 for that income. Of course I'm freaking out and was just wondering if anyone more knowledgeable than me on this subject could confirm that we do in fact owe Federal taxes for this income. Thank you.