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Over $600 reportable??? Clarity

August 14, 2018 07:37PM
As an Independent Contractor, any money over $600 is reportable as income, is that $600 per MSC? For example, I work for several MSC's through ISS, is that $600 per MCS or $600 through ISS
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August 14, 2018 07:55PM
You are responsible to report every penny to the IRS. The $600 figure is only the minimum amount you need to make with each MSC for them to be required to send you a 1099 and report it to the IRS. If you make less than $600 with a MSC, you won't get a 1099, but you are still responsible to report it as income.
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August 14, 2018 07:59PM
Every dollar you earn is reportable whether you get a 1099 statement or not. The $600 threshold is the requirement put on the contractor (MSC) as to when a 1099 is required to be issued. You need to keep track of all your income (fees) since it’s all reportable. Of course you can deduct expenses but that’s a whole different story.

Edited 1 time(s). Last edit at 08/14/2018 08:01PM by kenasch.
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August 14, 2018 08:07PM
All income is "reportable" and should be reported.

The $600 threshold has nothing to do with how much income you report to the IRS. It is simply the threshold for which a company has to send you a 1099.

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August 15, 2018 02:15PM
Consider it this way. If $600 per company was the threshold you had to report and you worked up to $599 for 75 companies you would make $45,000 tax free. How likely is that?

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August 15, 2018 02:28PM
@LisaSTL wrote:

Consider it this way. If $600 per company was the threshold you had to report and you worked up to $599 for 75 companies you would make $45,000 tax free. How likely is that?
That would be pretty awesome if it were real.

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August 15, 2018 03:04PM
What everyone else said, you must report all income and for each MSC you shop for (or any company you do IC work for) you will receive a 1099 after $600. Now if you do IC work for a company that lumps reimbursements for required purchases into your total and it comes over $600 on your 1099, you can deduct the reimbursements from the total. But please see a tax professional because people have different views on this. Some consider it income, but most do not since you have to make the purchase as a requirement for the shop.
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