taxes

[hyjinx11]

can anyone tell me how this works when claiming taxes???

[Joeyramone]

Don't worry about it.  If you feel you need to pay taxes on your FC earnings, volunarily send the government money.  I am fairly sure FC won't send out W's.

[marciaenglish]

You only have to worry about taxes if you make a fortune!  When and if that happens........you won't care!   

[hyjinx11]

Don't worry about it.  If you feel you need to pay taxes on your FC earnings, volunarily send the government money.  I am fairly sure FC won't send out W's.

HEHEHEHEHEHEHEHEHE!!!!  that's a good one   thanks for the imput

[hyjinx11]

You only have to worry about taxes if you make a fortune!  When and if that happens........you won't care!   

u r 100% right!!!!! 

[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 some sound advice:

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!

[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.

[cwortman544]

An employer I worked for in the past that I independent contracted for I was sent a 1099 for roughly $1200 in earnings (when i actually earned more than this) but it's whatever is reported the IRS looks at and if you don't report it and the employer does you will be red flagged and they will audit you so be careful if you do make $600 on here or more within a year.  My former boss was audited when he never reported thousands of dollars earned in a casino years ago.  What it cost him to hire an accountant and pay in penalties was NOT WORTH IT lol trust me on this.

[pstovall]

I always report a list of everything I make on Internet money making programs and also the expenses I incur.  In reading this thread I couldn't help but think what a wonderful achievement it would be to get that official 1099 form.