Over $600 reportable??? Clarity

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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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.

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.

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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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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@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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Seriously, nobody cares that you're offended.

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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Over $600 reportable??? Clarity

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