@guysmom wrote:
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YES YES!! JAS is correct!! I pay my taxes!! I just don't get a 1099 from The Source (or ANY MSC for which I earn less than $600/yr in fees). HOWEVER....I have a spreadsheet and keep track of all my fees earned, since I only do this part-time, and more as a hobby. I typically earn between $2000-$2500/yr, so when I do my taxes, I subtract my mileage deduction from the fees earned, and that's what I pay taxes on. It's not a whole lot, but I DO pay my taxes!!
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I'm not trying to be troublesome here, I'm just saying how the IRS views income.
My advice on what was posted....
Don't ever post that you are doing this as "more as a hobby." That means you cannot deduct your expenses, and your income is not reported on schedule C, and you do not pay self employment on it. It means it is direct income, form 1040, line 21, and fully taxable.
People, listen up.
As a shopper, always, always, always indicate that the sole purpose for your shopping is to make a profit. Your intention is to have financial gain through this work. Never, never, never say it's like a hobby to you.
Again, I am not trying to be troublesome, and it is fine that, as shoppers, you file your own taxes. It is actually better that you file your own taxes than to go to a professional. If you make a mistake, the IRS does not assess a penalty against you. You may have to prove, through receipts, what you have done, but there won't be penalties. If I make a mistake on a decision between, say hobby income or self employment, then it is a penalty of $500 for every occurrence where due diligence cannot be proven on my part.
I'm not returning to this thread. I said, "Not that I am indicating that towards you personally. I am posting for information to all shoppers."
and it has been taken personally and defensively.... not my intent, and I won't be a part of this any longer.
I recommend all shoppers to use an EIN because it keeps your SSN from being put out there with all these companies. There is no financial gain, but... also, there is no financial loss/risk by getting and using the EIN.
Have a good day.