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1099's Tax Pros I Need Some Advice

by reapr
6 replies
I have not done taxes yet but have got all my 1099's in hand. I have also figured out all my hosting/educational expenses. I also have earnings from other affiliate programs that are shy of the 600 dollar mark. As usual everything gets reported and as a sole proprietor.

I have been doing the same routine for the last 10 years with internet earnings and 1099's

I forgot where I read it but is it necessary to report income from programs below 600? I read in another forum it is not ... I suspect it is still a taxpayers responsibility to report it based on doing my own taxes. Has there been a change in tax code?

Anyone!

Any good books / tools or information online for doing taxes for IMers?
#1099 #advice #pros #tax
  • Profile picture of the author Dan C. Rinnert
    Originally Posted by reapr View Post

    I forgot where I read it but is it necessary to report income from programs below 600? I read in another forum it is not ... I suspect it is still a taxpayers responsibility to report it based on doing my own taxes. Has there been a change in tax code?
    If you pay an affiliate (or freelancer) under $600, you don't have to send them a 1099.

    But, if you earn under $600, you still have to report it as income.

    Disclaimer: I'm not an accountant.
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  • Profile picture of the author Chris Lockwood
    You're supposed to report all income- doesn't matter how much of it was from a specific company.

    I don't even need 1099s to do taxes since all the money would have been deposited in my business checking account (or business Paypal account) anyway.
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  • Profile picture of the author Michael Oksa
    You have to report all income.

    The $600 is just the general threshhold for a 1099.

    Think about it. If people didn't have to report any income under $600, then everybody would pay out $599 and then get payments from "different" entities.

    Yes, you have to report your income.

    I'm not an accountant either, but just thought of another example.

    I reported all of my income last year, but most of that was though PayPal. My guess is that the average purchase was about $10, with some repeat customers. If I had 500 payments like that...

    All the best,
    Michael
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  • Profile picture of the author bottomline11
    First of all my disclaimer: I am not an account but I am a certified Tax
    Preparer, and up until this year I had worked part time running a Liberty
    Tax franchise office during the tax season of course.

    Mainly to get out of the house as being a full-time IM'er for almost 4 years
    now was causing tension between my soon to be ex-wife and myself.

    Lesson be careful what you wish for you might just get it :rolleyes:
    I guess some people just do not know how to be happy :confused:

    Please forgive my foray into unrelated matters but know there shouldn't be
    any questions about how I know this.

    I was basically hired to oversee the office and act as a self-employed tax
    specialist as I have been a sub contractor or straight out self employed for
    20 years.

    And most definitely you do indeed by the letter of the law have to claim all
    income above and beyond $600 not reported by an employer on the
    standard W-2 form if you are reporting earnings paid out by your business
    you only have to report anything over $600 paid per per entity.

    So in other words if you have more than one 1099 and the sum total is
    over $600 you are obligated to list and report all of them.

    So it would in fact not really do anyone any good to earn just short of
    $600 on a 1099 form and then switch business entity names and rinse and
    repeat as they are still obligated to list all their cumulative income.

    Unless they were to go to the trouble of incorporating in each incident
    which would then be legal as each corporation would be filing an individual
    tax return.

    But since the cost of incorporating numerous business entities would be
    more than one would stand to gain by simply reporting the income.

    I know this is long winded but tax issues usually are just try reading the
    tax code .

    Besides with the economic situation being what it is right now, it is only
    going to make those who are determined to find a way to regulate and tax
    digital products even more resolved to do so.

    Let's be above board and show everyone who thinks that making money via
    the internet is shady and bad, that the majority of internet marketers are
    above board and honest business people.

    To A Great '09 For All Of Us
    Matt
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  • Profile picture of the author webpromotions
    The 'only have to file a 1099 if you paid them over 600' rule doesn't always apply.
    For example, there is no minimum for payments made to an attorney.
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  • Profile picture of the author enterpryzman
    I as an employer send 1099's out and then must file them with the IRS....if you do not claim it, the IRS still knows about it I would assume.
    Just a thought.
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