I filed my taxes last month but got a letter from the IRS I needed to submit W2 and 1099 misc. forms. I noted the IRS does not allow 1099 form to be printed for some reason? I also noted I am required to submit the tax # of the company. I worked for many shops - so do I need to file a form for everyone or may I combine the incomes and file? I ask regarding those shops which paid me less than $600 for 2012.

Txmedia, direct your questions to the IRS to get the answers you need. The questions you are asking are not clear.

What is NOT clear? I received a letter from the IRS stating I need to supply W2 and 1099 misc. for any money earned from 2012. I am asking can I USE one form to report all the shops which did not reach the $600 level? Do I need to report every little job with an individual form? I have seen other comments on this site regarding taxes. The IRS stated I could NOT print the 1099 Misc. form. Can any of you shoppers share your own experiences regarding filing taxes? Thanks!

Did you file a schedule C with your return?

No. We are not talking about a lot of income here.

They only need 1099 forms from those companies that you earned more then 600 from.

The numbers they have dont match the numbers you gave them so the system flagged it...

Which is why I always tell people to enter the form info instead of grouping it all together
as one total...

I am not a tax professional and I do not guarantee the accuracy of the information below. I suggest you log on to IRS.gov and research these issues for yourself.

All of your mystery shopping income, whether over or under $600 from any one company, should be reported on one (1)Schedule C for your mystery shopping business. If you have more than one business, you will need a separate Schedule C for each business. On the same Schedule C, you also take all allowable deductions. If you earn a profit from your self employment, you will file a Schedule SE to report the self employment tax on that profit. Any W2 income is reported on Form 1040.

You do not prepare Form 1099 to report work you did for others. If you are employing others to do contract labor, you furnish them with a Form 1099 if they do more than $600 in work for you. You prepare Form 1099 only if you are paying someone to do work, not if they are paying you to do work.

Form 1099 is furnished to you by companies that paid you over $600. If the company paid you less than $600, they are not required to furnish you with a Form 1099. You are required to render all income for taxes, regardless of how small the amount. All income, every cent, is reportable to the IRS.

Complete instructions on Form 1099, Form 1040, Schedule C, and Schedule SE are available at IRS.gov.

I regret you did not care for my initial answer. A retaliatory attitude will usually not get you what you want. Good manners are generally more productive.

txmedia Wrote:
-------------------------------------------------------
> What is NOT clear? I received a letter from the
> IRS stating I need to supply W2 and 1099 misc. for
> any money earned from 2012. I am asking can I USE
> one form to report all the shops which did not
> reach the $600 level? Do I need to report every
> little job with an individual form? I have seen
> other comments on this site regarding taxes. The
> IRS stated I could NOT print the 1099 Misc. form.
> Can any of you shoppers share your own experiences
> regarding filing taxes? Thanks!


Without CAPS, you are sounding like you are yelling. Yelling is not good for the soul.

I noticed the 1099 not being downloadable. It appears to be a form (1099) that comes from a income-able source.

Like angela12 posted--->Did you file a schedule C or C-EZ? I filed a "fax-isimle" through the turbodeluxe. It explained that if I didn't have a 1099 for some income to include a Sch. C/CEZ. So maybe thats what you need to do. I am no tax expert. (nor do i play one in real life.) I receive my other tax info from different tax post on this site.

Your original post was very confusing. I am not surprised Mary responded initially the way she did.

> I noted the IRS does not allow 1099 form
> to be printed for some reason? I also noted I am
> required to submit the tax # of the company.

I have no idea what you meant by you "noted" this and that. I also don't understand what you meant by the IRS not allowing a 1099 form to be printed. How could the IRS stop you from printing a 1099 form? Why would you need to print a 1099 form anyway? If the IRS asks for your W2s and 1099s, just submit all the W2s and 1099s you received.

> I worked for many shops - so do I need to file a
> form for everyone or may I combine the incomes and
> file? I ask regarding those shops which paid me
> less than $600 for 2012.

This, too, was confusing. By "do I need to file a form," did you mean file a 1099? 1040? Schedule C?

Personally, I use a 1040 form to file my individual income tax return, and include a Schedule C. If I got a 1099 (be it from a bank for interest earned or from an MSC for shopper fees), I list the information, including the issuer's tax ID number. For mystery shopping income not accounted for on 1099s, I report that as a combined sum on my Schedule C for mystery shopping.

Finally, as others stated, copping an attitude is usually not productive when asking for help. This is especially true for someone who has a questionable history, such as posting under multiple usernames. Communicate nicely and clearly, and you are likely to find responses in kind. Some of us are not as nice and kind as Mary, even when we try to be.

Thanks for your comments. Coping an attitude? Not - I note this forum has plenty. I asked a question because I do not know the answers and the IRS is confusing. You think my comments confusing? The IRS stated they would not accept copies of 1099 forms. That is on their site. As for reporting on Schedule C - I have found my refund is lowered when I claim deductions. I also receive EIC which figures into the scenario. I appreciate all responses - and accept them as generous comments - even if not the intent!!!

The part that drives me a little crazy about the 1099s is that some MSCs include both fees and reiumbursements. I'm not altogether sure how to make the numbers make sense to the IRS with those. This year, I just submitted the total fees earned and didn't muck around with the 1099s.

Hoping my return doesn't get flagged.

I have used turbotax and other similar sites for several years but they now want $$ and everytime I say I don't want to upgrade I find my site is bogged down. When I have used these online companies I never have to provide any backup documentation. In a way it would be easier. The instructions on my IRS letter states I need to enclose only the information requested - to support EIC on my 1040EZ. I need to attach any W-2, 1099-Misc or earning statement/check stub with year-to-date totals to support the entry.

Ah, new details. They're checking out that earned income credit. They want the requested items to prove the reported income.

----------------------------------------------------------------------------------------------------------------------------------
txmedia Wrote

> I have used turbotax and other similar sites for
> several years but they now want $$ and everytime I
> say I don't want to upgrade I find my site is
> bogged down. When I have used these online
> companies I never have to provide any backup
> documentation. In a way it would be easier. The
> instructions on my IRS letter states I need to
> enclose only the information requested - to
> support EIC on my 1040EZ. I need to attach any
> W-2, 1099-Misc or earning statement/check stub
> with year-to-date totals to support the entry.

Here's a thought. Since you don't like the attempts of those trying to give you some advice for free, hire a tax professional and pay them. Then you can cop an attitude with them when they ask clarifying questions.

txmedia Wrote:
-------------------------------------------------------
> Thanks for your comments. Coping an attitude?
> Not - I note this forum has plenty. I asked a
> question because I do not know the answers and the
> IRS is confusing. You think my comments
> confusing? The IRS stated they would not accept
> copies of 1099 forms. That is on their site. As
> for reporting on Schedule C - I have found my
> refund is lowered when I claim deductions. I also
> receive EIC which figures into the scenario. I
> appreciate all responses - and accept them as
> generous comments - even if not the intent!!!

When the IRS asks you a question, answer that question and only that question. They are asking for W-2's and 1099's. If you have W-2's for your return, send them in. If you got any 1099's, send them in. Period. End of story. If you have neither, tell them you don't have any W-2's or 1099's because you are self-employed and did not earn $600 from any client. Tell them you can provide direct deposit statements or check stubs (you DID keep those, didn't you?) to support the income you received. Then copy your bank statements, circle the direct deposits, print out your Paypal statement, circle the payments from the MSC's, and copy your check stubs for the ones who mailed you a check and circle on your bank statement where you deposited them. Send that in with your letter and chances are you won't hear from them again -- unless the indicated deposits don't equal what you put on your schedule C.

Which is why I report everything I receive as "income" and deduct the reimbursed amounts as "deductions" regardless of what might be reported on any 1099's I get; if you got $1000 and $50 of it was a reimbursement, and you only put $950 down as income, now you will have to explain stuff to the IRS that you could have avoided by just declaring the $1000 (even if the 1099 shows $950) and deducting the $50.

I've had questions from the IRS in the past and they really just want answers to just the question they asked, nothing more. I've never had them come back a second time after I answered them, and never had a tax return adjusted.

An online co. prepared my form up to a point - then I printed it and mailed it in. I do have proof - paypal is proof for sure. I have all the info they want. My question was did I need to get multiple 1099 misc. forms for each MSC? It sounds as if I do? When one works for a number of MSC that can require a lot of paperwork.

All anyone needs to do is review my initial question and then the responses and I rest my case. Reminds me of some hens my parents once had. You would walk into the yard to feed them or to check on them and you had better have on shoes cuz they were gonna peck and peck and peck. The only one who could make the hens behave was a worn out of rooster - God love him.

txmedia, I have no idea why people are saying you are copping an attitude. To me, it was the other way around and you seem perfectly fine. I guess simply because you typed "NOT" in one sentence. Some people are uiltra-sensitive to caps, but when it is written like that (just one word), people need to relax and simply look at it as in italics.

By the way, I don't know for sure the answers to your questions. Best bet is to call the IRS to verify, because you most likely would not receieve a 1099 for any income under $600 and would not receive a W2 if it's not employment income. If you worked for any company as an employee, you should have received a W2 no matter what the income. I do know you can call up the IRS and ask them what income they have on file for you. There is some info on these pages about income from self-employment:
[www.irs.gov]
[www.irs.gov]


Good luck!

Here is my question. If you have income from Mystery Shopping, how could you file your taxes without a Schedule C? If you did not file a Schedule C, that is most likely part of the problem, but there may be other issues.

Here is a quote from the IRS website:

"Unless you were an employee, you report your non-employee compensation on Schedule C (Form 1040) (PDF), Profit or Loss from Business (Sole Proprietorship), or Schedule C-EZ (Form 1040) (PDF), Net Profit from Business:"

Here is the link, if you want to see the full details:

[www.irs.gov]

We have the option to file it as hobby income too.

txmedia you do not need to ASK anyone for a 1099 UNLESS they paid you more than $600 in which case they should have sent one to you. If someone should have given you one (because you got $600 or more from them) then you should ask for it. Otherwise, you just tell the IRS you didn't get any of them because nobody paid you more than $600.

Just answer their question. If you never got any W-2's or 1099's, you can send in any of them. Just explain to them and offer the alternative proof of your income in the form of bank statements showing the small deposits from many companies.

Well, kick me in the head for trying to help here. The original advice to contact the IRS was the best possible advice. We can't possibly know what's going on here from the information we're getting. How can we know how to tell anyone exactly what the IRS needs? Does anyone see CPA or EA after my name? No. Did I send you a bill? No.

This turns out to be an earned income credit issue and they may think they have hinky figures. All they want is some more information. Exactly what? If you don't know, ask them. They have the answer. If you (as you say) failed to take expense deductions connected with reported income, that would change your position on the earned income credit curve. You state that you did this to increase the earned income credit. Maybe they don't like that you chose not to report expenses so you could report more income so you could move up on the earned income bell curve. But hey, what would I possibly know about it? After all, I'm just a hen pecking around in this mystery shopping business. I don't know squat about the IRS and taxes. You know it all, so why are you asking us questions?

I'm sick of this hen trash. You get all uppity (don't yall love that expression "all uppity" every time you get on this forum. You want to do some name calling? How about "AMATEUR".

Maybe you're missing that the 1099 is not part of the tax form, it's not a form YOU create to send to the IRS. It's a form the company you work for creates and sends a copy to the IRS and a copy to you. You use the information on it to do your tax return. If the IRS gets 1099's for $5000 total and your income on your return is only $4000, they will send you a letter saying you owe more tax. In this case what has probably happened is you are saying you had income that the IRS doesn't know anything about because they don't have any 1099's or W-2's for you, but you are claiming a tax credit based on income. Since you're only entitled to that credit if you have income and they don't have any proof you have income, they're asking you to prove it.

I'm more surprised that you have net taxable income from mystery shopping because the mileage deduction wiped it out for me. If you didn't take your deductions and ended up showing net income you really don't have and got an Earned Income Credit as a result, they will probably disallow the credit. I got EIC a couple of years and there was a questionnaire my tax lady asked me to make sure I was claiming all my deductions in addition to all my income.

I was just about to post just what itsasecret posted,YOU DO NOT create form 1099s for yourself. It sounds like the IRS is asking if you have either 10099s or W-2s to support your statement of self-employment earnings. Any self-employment earnings should have been filed on a Schedule C, per IRS rules. If your original return lacked a schedule C, that almost certainly caused the question to be raised about your earnings claim. Sounds to me like what you need to do is to file an amended return, 1099, and a schedule C, along with a statement that the MSCs that paid you the fees did not send 1099s, but that you have a Paypal summary and bank records supporting receipt of the income. If you did get one or more 1099s, by all means keep copies for yourself and send the originals, if the IRS wants them. BTW, you only use ONE Schedule C to report all of the MS income. So, you really have very little work to do.

I worked other jobs last year and those jobs sent W2s. I did make over $600 with one MS company and that company sent me a 1099 Misc. income. The other companies did not. I did add my income an included it all when I filed. I will send a copy of my bank statements with the paypal payments highlighted. I know you are suppose to report any income - even from a garage sale and I don't know how anyone would prove that? This should resolve the issue.

Thanks for all your help!

If you don't wish to take deductions you don't have to. That is my understanding. It is my choice to write off gas mileage or not write off gas mileage. If that keeps me from getting a nice refund - I don't file my mileage or any other job related expenses. Why would I if that would lower my refund? I have contacted the Tax Advocates in Houston who have been a great help in the past following Hurricanes Rita and Ike and all the gov. deductions allowed anyone in a disaster zone.

No, you don't have to take deductions. You can pay more taxes if you prefer not to take deductions. Not taking them to increase the earned income credit may be a different issue. But, as I said, I don't know squat.

The difference is probably in how your deductions affect your tax bill.

If a person takes too many deductions and reduces their taxes the IRS is going to want more proof, but if they don't take all the deductions and it increases their tax bill the IRS is probably not going to complain.

In your case it is just the opposite, by excluding some of your deductions you are actually decreasing your tax bill and the IRS never likes that. You also haven't mentioned the self-employment tax that will be applied since you earned over $400 from mystery shopping.

Geez Mary... you've been insulting, arrogant, and lecture-y throughout this whole thread. I don't even know why you initially responded and then keep responding, because you certainly seem to have a personal problem with the poster and the question(s).

rainy, you are missing a lot of back history and should look at some of the original poster's older threads. Mary is one of the most helpful posters on this forum. I highly respect her, as do many others on this forum.

rainy Wrote:
-------------------------------------------------------
> Geez Mary... you've been insulting, arrogant, and
> lecture-y throughout this whole thread. I don't
> even know why you initially responded and then
> keep responding, because you certainly seem to
> have a personal problem with the poster and the
> question(s).

But somehow it is okay for the OP to call names? People were trying to get more information and offer some concrete suggestions. The original post did not include all the information about what the OP is trying to do. It's kind of like a mystery shopping report, if you don't provide clear details and someone asks you for clarification the best course of action is to be more clear not shout or call the editor names. The whole hen and rooster story was insulting and sexist. Plus it goes back to the whole concept of this forum, a bunch of people trying to help others. Rather than be ingrates, those asking questions could show a modicum of appreciation for all the time donated.