Taxes

[joker365247]

I just had a few questions about taxes on Fushsioncash. The taxes are done by the calendar year right? Meaning the money I make is only counted from Jan. 1st to Dec. 31st. Not a year from the first paycheck. Because I know you can only make 599.99 a year before they have to report to the i.r.s. My friend told me as long as I stay below 600 I only have to list the money I make here as misc. income on my taxes 600+ and I have to file as an independent contractor.   Also do you count when you do the work or when you get paid for it? Meaning when I cashout in Dec. I won't get paid till the end of Jan. so is that 2012 or 2013?

[swogden]

If you report your income for tax purposes on a calendar year, then you'd only count the money that you RECEIVED from FC (or any site) on the same calendar year basis.

If a site requests your SS# (or asks you to fill out a W-9) for reporting your income, you will get a 1099 from the site showing how much income you've received.  The 1099 usually tells you where to enter the figure on your 1040 form.

[cwortman544]

If you report your income for tax purposes on a calendar year, then you'd only count the money that you RECEIVED from FC (or any site) on the same calendar year basis.

If a site requests your SS# (or asks you to fill out a W-9) for reporting your income, you will get a 1099 from the site showing how much income you've received.  The 1099 usually tells you where to enter the figure on your 1040 form.

Does FC actually send you a 1099 for earning less than $600 and if they do that means they report they paid out a certain amount of earnings to you right?  I was just curious because I thought I seen in previous threads awhile ago that if you make less than 600 on here they don't send you anything and it's only if you are over the 600 amount received during a calendar year. 

Anything I make that is considered income in any shape or form I try to report because I don't want the IRS to come back to me regardless of what was sent to me or was sent to them whether I know it or not and telling me they want to audit me.  I would rather report anything I've made and pay my dues rather than them finding out later even if the amount is under 600 and telling me they need to see all of my proof of income because that would be a royal pain in the neck.  2 things in life we will do that is guaranteed, pay taxes and die.

[dsawan]

can always go to irs website. Shd be below 600 where you do not report for taxes.

[skippymcnapper]

I am copying a response from Admin made in this post http://www.fusioncash.net/forum.php?topic=38189.15, these are not my words, just reposting for assistance:

If you attempt a cashout that will put you over $600 for the calendar year, the system will stop you and require that you complete an online Form W-9.  You have to provide your mailing address, SSN or EIN, and a couple other details, and then you can cashout.

Since your membership is not employment but rather INDEPENDENT CONTRACTING we issue payment for the full amount of your earnings; the tax liabilities are yours.

I am not a lawyer or accountant and this is not tax advice, but generally the IRS requires that you report ALL income from ALL sources: $20 at a garage sale, $25 from FC -- it's all "cash in the door" to the IRS and should be reported.

You MUST speak with an accountant who can look at your individual situation and give you the proper advice; there are many variables at play.  If you choose to take advice from an internet forum, be prepared for potential negative consequences in the future!

[cwortman544]

Thanks for reposting that skippymcnapper that helps out with the information.  Although I don't see how the IRS could track everything I believe anything with a trail such as fusion cash sending money to paypal or to a checking account I'm sure they have ways of figuring it out in some form.  I plan on reporting any amount made when filing for the tax year 2012.

[vjpruitt]

Most of the odd jobs that I work will send a 1099 if it is over 600 for the year.  I keep up with all my expenses so I can deduct it from the earnings, such as here maybe you can deduct the cost of your internet service because without it, you could not do this job.  I am allowed to deduct part of my internet and phone bills for my other job that I have because I am required to have them in order to work.  Hope this helps.

[swogden]

cwortman:  FC will not send out a 1099 if you have earned less than $600 in a calendar year.

As indicated above, when your request would take you over 600 in a given calendar year, FC will request SS/w-9 info so that they can fill out the 1099 for the year in which you would go over 600. 

Suggestion:  defer receiving that payment until the new year.  Unless you expect to receive more than 600 in every calendar year.

Not sure what happens in year 2.  IE you went over 600 last year, received your 1099 for last year etc.  This year you won't go over 600.  I don't know whether you will get a 1099 for this year's earnings from FC -- probably not -- but the IRS has a record of your receiving 600+ last year so they would be expecting you to report this years income even if less that 600 and without a 1099 to support it.

Never had that problem.

[bleyd]

I am copying a response from Admin made in this post http://www.fusioncash.net/forum.php?topic=38189.15, these are not my words, just reposting for assistance:

If you attempt a cashout that will put you over $600 for the calendar year, the system will stop you and require that you complete an online Form W-9.  You have to provide your mailing address, SSN or EIN, and a couple other details, and then you can cashout.

Since your membership is not employment but rather INDEPENDENT CONTRACTING we issue payment for the full amount of your earnings; the tax liabilities are yours.

I am not a lawyer or accountant and this is not tax advice, but generally the IRS requires that you report ALL income from ALL sources: $20 at a garage sale, $25 from FC -- it's all "cash in the door" to the IRS and should be reported.

You MUST speak with an accountant who can look at your individual situation and give you the proper advice; there are many variables at play.  If you choose to take advice from an internet forum, be prepared for potential negative consequences in the future!

Hey skippymcnapper, thanks for posting the information!!  I probably won't be coming close to making $600.00/year (since i'm only cashing out about $26.00/month)...so i won't have to worry about claim it.