gash
Hero in training
Posts: 5
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Post by gash on May 11, 2007 9:22:31 GMT -5
I'm not sure that this is in the right place but it seemed to be... For all the money that you collect throught the year from these things, how do you handle them with your taxes? Is there a box for them on the EZ form? I'm really bad at taxes and usually just do a computer program. I just wanted to make sure of this before I started doing any of the surveys. I like to keep honest when it comes to my finacial situations with uncle sam.
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Post by Connie on May 11, 2007 10:14:00 GMT -5
You need to check with your state but it typically only needs to be reported if you make over a certain amount ($600?) from any ONE company. When that happens the company usually sends you a 1099 to report the income. I DID have a couple of companies last year that I KNEW I had made over $600 yet did not recieve the 1099. I just went in to my account and checked the amount for the year and reported it anyway.
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gash
Hero in training
Posts: 5
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Post by gash on May 11, 2007 11:37:52 GMT -5
Good to know, exactly what I was hoping to hear, thanks!
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Post by thekurtzfamily on May 14, 2007 14:04:55 GMT -5
Connie, Does this mean you're not supposed to report it if you make more than $600 but it's all from different companies? (ie. not earning $600 from any one company but more than $600 all together...)
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Post by Connie on May 14, 2007 15:24:08 GMT -5
I can only speak for myself. I report anything over $600 from any one company. If I make $10 from surveyspot for the full year.. I don't worry about it. You can check your states rules and the IRS rules online or through your CPA if you are concerned.
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Post by spookyhurst on May 14, 2007 23:30:34 GMT -5
Actually, you have to report all earnings over $400, regardless if it came from one company or twenty. The $600 rule applies to when a company must send you a 1099 by law, and doesn't have anything to do with how much you as an individual pay in taxes. According to the IRS website: Who Must Pay Self-Employment Tax?
You must pay SE tax and file Schedule SE (Form 1040) if either of the following applies.
Your net earnings from self-employment (excluding church employee income ) were $400 or more. You had church employee income of $108.28 or more. Your net earnings from self-employment are based on your earnings subject to SE tax. Most earnings from self-employment are subject to SE tax. Some earnings from employment (certain earnings that are not subject to social security and Medicare taxes) are subject to SE tax.
If you have earnings subject to SE tax, use Schedule SE to figure your net earnings form self-employment . Before you figure your net earnings, you generally need to figure your total earnings subject to SE tax.
Note: The SE tax rules apply no matter how old you are and even if you are already receiving social Security or Medicare.www.irs.gov/businesses/small/article/0,,id=98846,00.html#2 Hope this helps !
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Post by Connie on May 16, 2007 9:19:41 GMT -5
As I said.. Im not a CPA.. I would definately check with one though if you are concerned. I don't think taking surveys would qualify as "self employment" from what I have seen. Here are the rules for determining whether or not it is a business or a hobby from the IRS site: How do you distinguish between a business and a hobby? Since hobby expenses are deductible only to the extent of hobby income, it is important to distinguish hobby expenses from expenses incurred in an activity engaged in for profit. In making this distinction, all facts and circumstances with respect to the activity are taken into account and no one factor alone is decisive. Among the factors which should normally be taken into account are the following: Whether you carry on the activity in a businesslike manner Whether the time and effort you put into the activity indicate you intend to make it profitable Whether you depend on income from the activity for your livelihood Whether your losses are due to circumstances beyond your control (or are normal in the startup phase of your type of business) Whether you change your methods of operation in an attempt to improve profitability Whether you, or your advisors, have the knowledge needed to carry on the activity as a successful business Whether you were successful in making a profit in similar activities in the past Whether the activity makes a profit in some years, and how much profit it makes Whether you can expect to make a future profit from the appreciation of the assets used in the activity Additional information on this topic is available in section 1.183-2 (b) of the federal tax regulations www.irs.gov/faqs/faq-kw82.html
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gash
Hero in training
Posts: 5
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Post by gash on May 18, 2007 21:21:58 GMT -5
I'm glad to see I stirred up some good conversation. Thanks for all the info, very helpful stuff.
One other thing. The links for some of the surveys page on katiehugs seem to be a little out of date. Some of them all link to the same site and some others are no longer viable links. Just a FYI. BTW, thanks for even having that page available, I've already found a couple that I enjoy participating with.
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Post by Connie on May 19, 2007 19:14:29 GMT -5
Thanks for letting me know! Do you remember which ones are off? I haven't went over it in many many months so Im not too surprised.. well I am a little... I know I haven't changed the My View link since they switched names but I didn't realize there were others.. I will have to go over it this week!
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