Do we need to pay taxes???????

[hawkeye3210]

You need to pay taxes on all income earned regardless of how much you make.

Not true.  If you don't make enough, you don't have to pay taxes.

According to the IRS website, it's $400 instead of $600.  These types of sites count as "self-employed".  Has it changed from $600?

http://www.irs.gov/individuals/article/0,,id=96623,00.html

To determine if you need to file a Federal Income Tax return for 2010 answer the following questions:

Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return. Do any of the following examples apply to you?

Did you have Federal taxes withheld from your pension and wages for this tax year and wish to get a refund back?
Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax year?
Were you self-employed with earnings of more than $400.00?
Did you sell your home?
Will you owe any special tax on a qualified retirement plan (including an individual retirement account (IRA) or medical savings account (MSA)? You may owe tax if you:
Received an early distribution from a qualified plan
Made excess contributions to your IRA or MSA
Were born before July 1, 1939, and you did not take the minimum required distribution from your qualified retirement plan.
Received a distribution in the excess of $160,000 from a qualified retirement plan.
Will you owe social security and Medicare tax on tips you did not report to your employer?
Will you owe uncollected social security and Medicare or Railroad retirement (RRTA) tax on tips you reported to your employer?
Will you be subject to Alternative Minimum Tax (AMT)? (The tax law gives special treatment to some kinds of income and allows special deductions and credit for some kinds of expenses.)
Will you owe recapture tax?
Are you a church employee with income in wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security or Medicare taxes?

It actually it is true.  All income is subject to federal income tax.  The $400 dollar limit is for self-employment tax, which is an additional tax.  That limit has been $400 for as long as I can remember.  

Filing requirements and actual taxes owed will depend on one's own circumstances, but all income is subject to Federal Income tax.  

[BizELady]

Thank you Hawkeye for answering the question about taxes in detail.

[lightningclix]

Indeed, thanks Hawkeye

[SurveyMack10]

So if you use say 5 separate sites but the total adds up to more than 600 you have to file?

[partha002]

Yes, you are automatically sent a 1099 Form from FusionCash if you earn more than $600 in a year, which you will need to file when doing your taxes. I received my 1099 a few weeks ago and already filed. Legally, you are supposed to report any extra earnings made during the tax year but companies like FusionCash are only required to send 1099's etc on earnings of more than $600.

Thanks for sharing your knowlege..much appreciated. I didn't know that.

[xdrummermommyx]

Yes, if you get a certain amount.
Normally they tell you.

[CHANEYLAKEGIRL]

Technically, yes, it is income, regardless of the amount. There may not be SE taxes due, but income taxes still may be due depending on your situation.

[freepcmoney]

  Yes, Yes, Yes, and IF you find a penny on the ground, you are suposed to report that on your taxes too. SO that the illegal aliens can get FREE health care and FREE foodstamps,  and FREE education for their anchor babies, and FREE Section 8 housing, OR so that the government can give billions in FOREIGN AIDE to some country that will turn around and murder you or your children. Now that is a real American, right there. 

[ULuvCeCe]

Yes, Yes, Yes, and IF you find a penny on the ground, you are suposed to report that on your taxes too. SO that the illegal aliens can get FREE health care and FREE foodstamps,  and FREE education for their anchor babies, and FREE Section 8 housing, OR so that the government can give billions in FOREIGN AIDE to some country that will turn around and murder you or your children. Now that is a real American, right there. 

And if/when you end up in a situation where you need one of the FREE services they tell you that you've made too much and it's all b/c of the extra penny you found that they made you put on your taxes  But in all seriousness yes, it is unfortunate that some people manage to get stuff FREE left and right but others who you know are struggling "make too much" are "overqualified" etc etc.

[ULuvCeCe]

You need to pay taxes on all income earned regardless of how much you make.

Not true.  If you don't make enough, you don't have to pay taxes.

According to the IRS website, it's $400 instead of $600.  These types of sites count as "self-employed".  Has it changed from $600?

http://www.irs.gov/individuals/article/0,,id=96623,00.html

To determine if you need to file a Federal Income Tax return for 2010 answer the following questions:

Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return. Do any of the following examples apply to you?

Did you have Federal taxes withheld from your pension and wages for this tax year and wish to get a refund back?
Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax year?
Were you self-employed with earnings of more than $400.00?
Did you sell your home?
Will you owe any special tax on a qualified retirement plan (including an individual retirement account (IRA) or medical savings account (MSA)? You may owe tax if you:
Received an early distribution from a qualified plan
Made excess contributions to your IRA or MSA
Were born before July 1, 1939, and you did not take the minimum required distribution from your qualified retirement plan.
Received a distribution in the excess of $160,000 from a qualified retirement plan.
Will you owe social security and Medicare tax on tips you did not report to your employer?
Will you owe uncollected social security and Medicare or Railroad retirement (RRTA) tax on tips you reported to your employer?
Will you be subject to Alternative Minimum Tax (AMT)? (The tax law gives special treatment to some kinds of income and allows special deductions and credit for some kinds of expenses.)
Will you owe recapture tax?
Are you a church employee with income in wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security or Medicare taxes?

It actually it is true.  All income is subject to federal income tax.  The $400 dollar limit is for self-employment tax, which is an additional tax.  That limit has been $400 for as long as I can remember. 

Filing requirements and actual taxes owed will depend on one's own circumstances, but all income is subject to Federal Income tax. 

Wonderful list guys! But as always everyone remember it is best to check with a tax professional, if they changed it to $400 that is new to me too!

[dexterjrh]

I was told about a few months ago it was 500.00 in a year. That was my tax agent that told me that.

[01i73r]

yeah because 100 a month isn't really worth collecting tax from =P

[2getherwewin]

Yes, you have to pay taxes on your money with Fusion Cash.

[nelisa20]

This was very informing because I was wondering the same thing, so
Do you claim it as a form of income when filing your taxes?

[Lynxcub]

I believe they changed it to $400.00 this year, which used to be $600.00 If I'm not mistaken PayPal is if you withdrawal more than $400.00 a year they will turn it in. Just something we all need to learn more about cause they change so many things each year. My mother completes other people's taxes so I leave it all up to her when she completes mine. She can keep up on all those changes better than I can.