Taxes on Payments

[RakiaTaylor]

I assume the payments dont have taxes deducted.  Can they be deducted for me?  If not, do they send a statement of payments?

[skippymcnapper]

I THINK you don't have to declare FC as income unless you earn over $600 a year so there is no need for taxes. But I hope someone who knows that for sure replies to confirm.

[RobertMendez]

yup over 600 a year usually a 1099Misc form is mailed to you, just like when you play the lottery scratchers, they dont tax you unless you win a prize over 600. no worries

[swogden]

Sites vary, but the general threshold is $600 before the site has to send you and the IRS a 1099 for tax reporting. (For FC the limit is $600.)

If you receive a 1099, make sure you report that income, because the IRS will have a copy and will check your form to make sure it its there.

There are some sites that have a lower threshold, but if they send you or the IRS a 1099, make sure that income is included in your tax return (Federal as well as state.)

The IRS expects you to report all income from all sources unless it is specifically exempt from reporting.  Check Publication X for details or your tax expert.

You should also make a point of keeping track of the expenses you incur:  the fees you paid for upgrades or offers or advertising.  If you are reporting all income, you may also deduct qualified expenses as a itemized deduction in Schedule A but only to the extent that all the special deductions exceed 2% of your adjusted gross income. (Note: you must itemize expenses to take advantage of this.)

If this is a business for you, you need to have earned a profit in at least 3 of the last 5 years -- and reported the income to the IRS.  The advantage of being a business is that the qualified business expenses can be deducted against the business income on a separate Schedule (Schedule C, I believe)  Most people would not bother with this as the reporting requirements are onerous.  But if it is YOUR BUSINESS, you will want to go this route.

And, no, the site does not withhold taxes from the payments -- even if you have received more than $600.

[spaingrape]

Thanks for the info. 

[mmegel]

If you do make over $600 do you have to provide SSN and other info to FusionCash?  I tried to find that kind of info when I first signed up but couldn't find anything.

[gamerpeeps]

Thank you, swogden, for the very informative answer. I think you covered all the bases on the taxes! Nice to have people who actually post answers to the topic questions. Thanks, again! Have a great day.

[mrsbluesmith]

Thanks swogdon.  Great job.  Very informative!

Way to go FC! 

[hipriestess4u]

taxes, I don't pay no stinking taxes

[arkovac]

Splendid information.  Good to have tax questions answered, even if it's a just in case thing.   

[angsilva2000]

If you make 600.in a year you have to file taxes

[swogden]

If you do make over $600 do you have to provide SSN and other info to FusionCash?  I tried to find that kind of info when I first signed up but couldn't find anything.

I've never earned more than $600 in any one calendar year, so I'm responding based on what seems logical.  When you make the request for cash out that would take you over $600 in a calendar year, I expect that FC will ask you to provided your SSN before they will approve the cash out.  Since they have to report your annual earnings to the IRS, they need your SSN in order to fill out the 1099.

Suggestion:  if you will reach the $600 limit with your next cash out, defer your request until the new year.

[ajann1983]

Thanks for the info swogden!!! This has answered a lot of questions

[TOMAS7]

And your safest route would be to double check with your tax preparer/accountant as to how you should handle this in your own individual situation. The information appears accurate here, but better safe than sorry. NO insults intended to those who presented info, just that it is always good to cover your backside with confirmation from a professional.

[RakiaTaylor]

Very helpful, thanks!