Paying Tax on Earnings on this Site

[Tresbn00]

A 1099 is issued to sub contractors when income is equal to or greater than six hundred dollars. It is up to the sub contractor to pay the taxes on the income stated on the 1099. Subcontractors pay their own taxes. If you were an employee of Fusion Cash you would receive a w-2 statement of taxes at the end of the year and Fusion Cash would be collecting the taxes from your gross income and issuing a pay check to you that would reflect the net income. Regulations dictate that entities are required to send a 1099 tax statement at $600.00. All income is taxable whether it hits the six hundred dollar threshold or not (ask any reputable certified public accountant or IRS agent). I had a house keeper that wanted a paid vacation. I told her that if I did that I would issue her a 1099 (and take the deduction). Her choice was to forego the paid vacation instead of paying twenty five percent of her income in taxes. People choose, illegally, to not claim income less than $600. If income received under $600 was not taxable, I would be the first person to take on 150 jobs so that I could make $90,000 tax free. The government would not allow someone to make $90,000 at 150 jobs tax free but will, most likely, not go after someone only making $200 from fusion cash.

[countrygirl12]

A 1099 is issued to sub contractors when income is equal to or greater than six hundred dollars. It is up to the sub contractor to pay the taxes on the income stated on the 1099. Subcontractors pay their own taxes. If you were an employee of Fusion Cash you would receive a w-2 statement of taxes at the end of the year and Fusion Cash would be collecting the taxes from your gross income and issuing a pay check to you that would reflect the net income. Regulations dictate that entities are required to send a 1099 tax statement at $600.00. All income is taxable whether it hits the six hundred dollar threshold or not (ask any reputable certified public accountant or IRS agent). I had a house keeper that wanted a paid vacation. I told her that if I did that I would issue her a 1099 (and take the deduction). Her choice was to forego the paid vacation instead of paying twenty five percent of her income in taxes. People choose, illegally, to not claim income less than $600. If income received under $600 was not taxable, I would be the first person to take on 150 jobs so that I could make $90,000 tax free. The government would not allow someone to make $90,000 at 150 jobs tax free but will, most likely, not go after someone only making $200 from fusion cash.

I know how it works.  You do not have to claim anything under $600 unless you are paid a regular check then you employer will turn you in on THEIR end.  So you are going to have to claim on your end as well.  If it is under $600 most places do not send a 10-99 although they can.  IF they send you a 10-99 you have no choice but to claim it.  If you do not when the other person claims where they paid you then you are going to get caught.

You do not have to claim income that is under $600.  This on the IRS website.  I doubt you claim the money you make from these sites.  Or the $10 your neighbor gives you for feeding her dog while she is away for the weekend.

And even suggesting you could work 150 jobs is laughable.  And FYI if you are working doing odd jobs for cash as long as you aren't mooching off government programs nobody is going to know nor will they care.

I do my taxes correctly.   Not claiming a couple hundred dollars that you get from a site like this is totally legal.

[judylucas]

I never come close to the amount needed to earn to pay taxes

[squirrelgirl44]

I had to pay taxes one year, I think it was 2013. Had I figured it out beforehand. I went ahead and took the tax hit, not realizing that about 1/3 of what I earned went to taxes. After that I made sure that I didn't hit that threshold. It would have been smarter of me to just let some of the credits expire instead. It wasn't worth it.

[elvisdo]

I don't know about the medicare but when you get a 1099 you do have to pay social security.  It has been years but I used to do bookkeeping as an independent contractor and got a 1099 and had to do this other tax form to pay in SS. It has been so long I don't remember about anything else. You can deduct internet and other costs though associated with earning online.

Hmmm.  I never thought about deducting internet costs. lol  That makes total sense though.

My accountant always deducts internet costs whenever I submit a tax form from one of these sites.

I didn't know that  I will remember that.

Since you are also using a personal computer, you can also deduct a percentage of the time as well. For example, you spend 10% of your time on FC throughout the year to earn money. That's something you can also claim.

That would be hard to prove. I paid for the computer in full a couple or more years ago. I figured if you get in to that then you are kind of like running a business and you could end up having to pay something for running a business out of your home.  I think when you file it asks if you "run a business" from your home. I don't call this type of earning money a job.  Esp since some days I may spend ALL day on here and only make a couple of dollars.  You have to have income from some where else. No one can make enough on penny clicking survey sites to totally support themselves.  If they can I would like to have a real chat with them. lol

I should rephrase that. What percentage of the computer is used towards these sites? That's the way my accountant explained it to me. Realistically I don't think it's more than 10%. So take into account how much you paid for your computer minus 10%. Of course this number decreases every year since the value of your computer depreciates over time. In the end it's just not worth making that declaration on your taxes.

[patti4me]

I don't see where I will ever have to address that issue since I don't make a lot of money on this site (or any site for that matter)

[Tresbn00]

Per file path www.irs.gov: "It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. The $600 limit is just the IRS requirement for Form 1099-MISC to be considered necessary to file by the payer...cash earned from side jobs; barter exchanges of goods and services; awards, prizes, contest winnings and gambling proceeds". Volition.com states that "your taxable income is all income made from all companies". Intuit.com "you need to report ALL income". Forbes.com/taxgirl attorney states, when asked if $599 from one employer and $150 from another needs to be claimed: "Yes. Income is income, no matter the amount...It's easy enough for the IRS to trace this...I have represented a number of taxpayers who assumed that it would be fine to leave a little check out here and there on purpose. But its not fine. If you get caught, you will be responsible for paying the tax plus interest and a penalty-underreporting is a crime". 150 sources of income is not difficult to achieve and several thousand individuals were indicted for tax evasion utilizing this method as outlined in the Panama Papers. I have had up to forty sources of income which is why I sought the aid of a certified public accountant. You may heed the quotes in this post, listen to those that file their own taxes (who do not have accounting certification, listen to my CPA that states that finding a quarter on the street constitutes income, but I would direct you to conduct your own research and seek the help of a licensed professional if doing the right thing concerns you.

[hawkeye3210]

You do not have to claim income that is under $600.  This on the IRS website. 

From the IRS website:
"It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income."

https://www.irs.gov/newsroom/reporting-miscellaneous-income

[freedavis]

I think you only pay over 500 if you reach

[countrygirl12]

I don't know about the medicare but when you get a 1099 you do have to pay social security.  It has been years but I used to do bookkeeping as an independent contractor and got a 1099 and had to do this other tax form to pay in SS. It has been so long I don't remember about anything else. You can deduct internet and other costs though associated with earning online.

Hmmm.  I never thought about deducting internet costs. lol  That makes total sense though.

My accountant always deducts internet costs whenever I submit a tax form from one of these sites.

I didn't know that  I will remember that.

Since you are also using a personal computer, you can also deduct a percentage of the time as well. For example, you spend 10% of your time on FC throughout the year to earn money. That's something you can also claim.

That would be hard to prove. I paid for the computer in full a couple or more years ago. I figured if you get in to that then you are kind of like running a business and you could end up having to pay something for running a business out of your home.  I think when you file it asks if you "run a business" from your home. I don't call this type of earning money a job.  Esp since some days I may spend ALL day on here and only make a couple of dollars.  You have to have income from some where else. No one can make enough on penny clicking survey sites to totally support themselves.  If they can I would like to have a real chat with them. lol

I should rephrase that. What percentage of the computer is used towards these sites? That's the way my accountant explained it to me. Realistically I don't think it's more than 10%. So take into account how much you paid for your computer minus 10%. Of course this number decreases every year since the value of your computer depreciates over time. In the end it's just not worth making that declaration on your taxes.

Actually that is about all I use mine for. But the computer is paid for. I most likely would not ever even try something like that. Too hard to prove.

[hawkeye3210]

Per file path www.irs.gov: "It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. The $600 limit is just the IRS requirement for Form 1099-MISC to be considered necessary to file by the payer...cash earned from side jobs; barter exchanges of goods and services; awards, prizes, contest winnings and gambling proceeds". Volition.com states that "your taxable income is all income made from all companies". Intuit.com "you need to report ALL income". Forbes.com/taxgirl attorney states, when asked if $599 from one employer and $150 from another needs to be claimed: "Yes. Income is income, no matter the amount...It's easy enough for the IRS to trace this...I have represented a number of taxpayers who assumed that it would be fine to leave a little check out here and there on purpose. But its not fine. If you get caught, you will be responsible for paying the tax plus interest and a penalty-underreporting is a crime". 150 sources of income is not difficult to achieve and several thousand individuals were indicted for tax evasion utilizing this method as outlined in the Panama Papers. I have had up to forty sources of income which is why I sought the aid of a certified public accountant. You may heed the quotes in this post, listen to those that file their own taxes (who do not have accounting certification, listen to my CPA that states that finding a quarter on the street constitutes income, but I would direct you to conduct your own research and seek the help of a licensed professional if doing the right thing concerns you.

LOL.  So I assume that you claim all your earnings on this site and other sites like this on your taxes? HA!

I have talked to a CPA and he said that if it is less than $600 you do not have to claim it.  I doubt very seriously you claim every penny you get for this and that all thru the year on your taxes.  If it is less than $600 you do NOT have to claim it.

You can do what you want, but it isn't helpful to anyone if you spread things that aren't true.

From the IRS website:
"It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income."

https://www.irs.gov/newsroom/reporting-miscellaneous-income

[countrygirl12]

I actually just made a couple of phone calls and I have the real and correct answers to the question I was trying to get answered.

[natashaspy]

I don't think so, just regular taxes.  If I'm not mistaken you have to make at least 600 a year before you even get the 1099 to start with.

[Azanne07]

I know someone on here started a thread about this a while back.  Said they got a 10-99 at the end of the year.

IF you have received a 10-99 from a site like this can you tell me if you had to pay SS and Medicare in as well?  Just curious as to HOW you were taxed?

ive had a 1099 but because I had income from other sources I really didn't feel the affect I just got a little bit less back and im not sure how that broke down

[countrygirl12]

I know someone on here started a thread about this a while back.  Said they got a 10-99 at the end of the year.

IF you have received a 10-99 from a site like this can you tell me if you had to pay SS and Medicare in as well?  Just curious as to HOW you were taxed?

ive had a 1099 but because I had income from other sources I really didn't feel the affect I just got a little bit less back and im not sure how that broke down

It doesn't break down by individual sources. It is a total.  If you had income from a job and they took out taxes then if that was ALL you had then you would have gotten money back. But if you got a 10-99 from this site then you didn't pay taxes on that.  SO, the taxes you should have paid on here was taken from what you should have gotten back if you were going to owe anything. If it is a smaller amount you wouldn't owe any taxes anyway.  I would assume it is $600 since that is the cut off where you do not have to send a 10-99.

It amazes me that such a simple question could start such a huge fight.  Too many people who have to be right on something that doesn't even concern them. lol