In March of 2012, a certain mystery shopping company mistakenly paid most of their shoppers twice for their February shops. When they noticed the error, they asked that we send the money back via payquicker, which I did. They then took the money from my payquicker account again. I pointed the error out to them, and they put the money back in my account.
When I got my 1099 from them, it included the second payment that was made error and the money that they put back into my account as income, thus over-reporting the money that they actually paid me by over $200. They are now telling me that they have to report every dollar that they paid me on my 1099, and that I will have to count that $200 as expenses on my taxes. This just doesn't sound right to me.
Has anybody else had this problem? Am I even making sense?
Edited 1 time(s). Last edit at 01/18/2013 08:36PM by beansdogtaylor.
Declare the 1099 as income, and the payment you gave back to them as a ... can't think what it's called ... refunds and credits? Refunds and allowances? Can't recall what it was called, but it's right under the line where you put your income on the Schedule C. Technically you did receive that extra $200 -- you just need to show that you gave it back to them. Go look on your Schedule C from last year and you'll see the line where you can deduct money you refunded.
Another good reason everyone should independently keep track of their income.
I pray it does not occur that the last thing I did before I died was vacuum the house or eat broccoli.
Not only CAN the company be identified, I think it SHOULD be identified. The reason I think the company should be identified is that the best thing we posters can do for other forum members and the shopping community is to identify the MSCs who do not pay on time, have payment difficulties, do not pay the correct amount, or - heaven forbid! - do not pay at all. Because posters here on the forum were willing to identify payment problems with Franchise Compliance and Freeman, many shoppers who read this forum regularly were saved from making the mistake of unknowingly accepting assignments. It was a valuable warning - both companies appear to no longer be in business, leaving many unsuspecting shoppers owed a lot of money.
A problem with double-payment and then re-payment and then a wrong 1099 is not as serious, certainly, as a chronic no-pay or late-pay company, but the warning might allow other shoppers to determine whether to hesitate a little before working for the company due to its history.
Many new shoppers want a list of the best companies. I think learning the ones that have problems and/or those to avoid is much more valuable.
the key is they said payquicker. Not many use them.
Also know that some companies include your reimbursements in their 1099's and other's dont. Be sure you know if the msc's you work for do, and to back that out of the amount.
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There are no stupid questions, but there are a lot of inquisitive idiots
When you try to please everybody, you end up pleasing nobody
That is a key - and most of us who have been involved in the many PayQuicker discussions know which company he is referencing. And - there have been previous posts about this subject by other posters, back in March 2012 when it happened. This poster is relatively new and was not here then, and he has probably not searched for discussions about the company or he would have found the previous discussion and would know others had the same issue. Other new shoppers and/or anyone who has not been involved in past months reading on the forum would also not necessarily know. The point is that when we have issues that other shoppers should know about, naming the company seems important to me. If we are unwilling to identify the MSC with whom the problem happened, I see no reason to discuss the problem.
As long as the information provided is factual, and we are not "bashing" the company, I think it is important to be direct in our reporting and name the companies when we report issues.