can someone please explain how taxes work?

[ripagert]

I am getting close to $500 for the year.....i know if you make $600 or more in a calandar year.....FC sends you something for you taxes......I am not sure if I will get to that much by the end of the year but i am curious.  Is it $600 received or $600 earned?

Is it a pain to do?

Thanx for all the support!!!




 

[zcote]

it is $600
FC doesn't take out taxes. You didn't fill out any withholding paperwork.

You need to add whatever FC pays you to your income when you do taxes.

You are supposed to do that whether FC sends you a 1099 or not.

Same with any $ you make.

....then there are deductions you can claim....and all sorts of other stuff too....

Basically taxes work like this:

It is legalized theft.

[swogden]

You will receive a 1099 for any calendar year that you RECEIVE $600 or more.

When you make a request to cash out that will take you over this magic number, FC will ask you to provide them with your tax ID number (ie social security no  for US) so they can complete the 1099.

Probably makes sense to defer that cash out until the new year.

Don't expect to have many/any deductions to write off against this income unless you plan to treat this as a business and report it via Schedule C.  If you plan to go that route, talk to your accountant.

[jcalexis]

if not sure about how to pay your taxes, the best qualified person to ask this question would be your tax preparer. He or she should have the altimate answer concerning the tax issue.

[bostonphil]

If you make over $600 from Fusion Cash or any other similar site, you should get a 1099. If you make over $600 total in the same calendar year from all of your sites, you are supposed to report it as miscellaneous income on your income tax form. Let's say that you are on 8 sites like Fusion Cash and you earn $2,000 total in one calendar year. You have to report the entire $2,000 as miscellaneous income on the appropriate line. You have to provide a description of the miscellaneous income. You could probably write in work at home sites or on line earnings. Keep records in case you ever get audited.

I have done drug studies and made well over $600 a year. I reported it as miscellaneous income on my tax form. It was real easy to do but since they did not take out any taxes, it caused me to have to pay rather than receive a refund.

 

[ripagert]

thanx for all the help everyone....really helpful information.....very much appreciated!!!



 

[vjpruitt]

I think you should also be able to deduct part of the cost of your internet service charges, as you have to have it in order to make this extra money.  I know I got to for my other extra income that I make, so keep up with all the expenses that you have in order to do this job.

[ripagert]

Thanx VJ....I never thought about being able to write off the internet service....we pay alot for our service too.....would definitly help.....thank you very much VJ



 

[zcote]

Thanx VJ....I never thought about being able to write off the internet service....we pay alot for our service too.....would definitly help.....thank you very much VJ

If you operate your survey sites as a business you can use all sorts of expenses. A portion of all your computer expenses will qualify. A % of your mortgage or rent will also apply.
This is the space required to operate your business i.e. the room that it is in...if your computer area is 20% of 1 of 5 rooms in your house and your rent/mortgage is only $500 then that is .20(500/5) per month. Now get a % of your utilities too.

Example above is $20/month for office space. + about $5/month for electricity + % of internet connection, say %30 of bill for $10. Now, you have a monthly deduction of $35. If you make less than that, the remainder will be deducted from the rest of your income etc.
buy some tax software and that is deductible to. Check your specials...somebody will pop up for this stuff soon enogh. do your shopping through the toolbar and i'm sure there will be additional discounts. wait until afterthe new year when everything is being advertised.
a simple tax report like this will probably be about 12 pages, if you don't do anything else. If you have other hobbies that can exploit this system, then go for it. The money you save compared to the time and hassle it takes to prepare will probably be a higher hourly wage than clicking videos and doing surveys @ $1/hr (on a good day)

 

[erinelise2]

This is good info for everyone.  Thanks for sharing it.