Probably. I'll tag @Taxing Matters , a site vetted Tax Attorney.Missouri
If company's send me cash or coupons to purchase a product of there's off Amazon to review for free will I have to pay state or federal taxes at the end of the year? I'm not selling anything and everything I receive is free.
I have never received anything over $40 it's small amount items.Probably. I'll tag @Taxing Matters , a site vetted Tax Attorney.
To clarify: Are you getting small amounts...ie...$3.00 for hand soap? Or larger amounts... $300.00 for tech items?
A coupon is considered to be a discount so that isn't a problem. Cash however is supposed to be reported on line 21 as "other income'. Will the IRS ever know about the cash? If you get more than $600.00 in cash from any one company they will issue a 1099-Misc.Missouri
If company's send me cash or coupons to purchase a product of there's off Amazon to review for free will I have to pay state or federal taxes at the end of the year? I'm not selling anything and everything I receive is free.
If you get more than $600.00 in cash from any one company they will issue a 1099-Misc BECAUSE THEY ARE REQUIRED TO. That doesn't mean that a company that you a company can't issue a 1099-Misc if they sent you less than $600.A coupon is considered to be a discount so that isn't a problem. Cash however is supposed to be reported on line 21 as "other income'. Will the IRS ever know about the cash? If you get more than $600.00 in cash from any one company they will issue a 1099-Misc.
True, it is of course possible for a company to issue a 1099-Misc for less than $600.00. I don't believe that I have ever encountered any, but its certainly possible.If you get more than $600.00 in cash from any one company they will issue a 1099-Misc BECAUSE THEY ARE REQUIRED TO. That doesn't mean that a company that you a company can't issue a 1099-Misc if they sent you less than $600.
Lots do if their payment/1099 system is fairly automated. I can think of three companies who, if they write you a check for a penny you will get a 1099.True, it is of course possible for a company to issue a 1099-Misc for less than $600.00. I don't believe that I have ever encountered any, but its certainly possible.
The cash is clearly income and must be reported on your return regardless of whether you get a Form 1099 for it. The coupons, to the extent they have a value to them, are also income and in that case would also have be included in your taxable income. Whether there is any real value to the coupons will depend on what kind of coupons they are.Missouri
If company's send me cash or coupons to purchase a product of there's off Amazon to review for free will I have to pay state or federal taxes at the end of the year? I'm not selling anything and everything I receive is free.
I hope you are not implying that the OP may omit income unless it is reported on an IRP document (e.g W-2, 1099, K-1, etc). All taxable income, whether reported to the IRS or not, must be included on the return. I've seen people get hit with the fraud penalty or even get criminally prosecuted for leaving off income that was not reported to the IRS on an IRP document.Will the IRS ever know about the cash? If you get more than $600.00 in cash from any one company they will issue a 1099-Misc.
I was not meaning to imply that. However I also hope that you don't mean to imply that someone is going to get criminally prosecuted by the IRS for accidentally forgetting to include a handful of payments under 40.00 on their return. They might get some penalty and interest but not a criminal prosecution.The cash is clearly income and must be reported on your return regardless of whether you get a Form 1099 for it. The coupons, to the extent they have a value to them, are also income and in that case would also have be included in your taxable income. Whether there is any real value to the coupons will depend on what kind of coupons they are.
I hope you are not implying that the OP may omit income unless it is reported on an IRP document (e.g W-2, 1099, K-1, etc). All taxable income, whether reported to the IRS or not, must be included on the return. I've seen people get hit with the fraud penalty or even get criminally prosecuted for leaving off income that was not reported to the IRS on an IRP document.
I haven't encountered that but I have no doubt that its true. However even with an automated system I would think that most companies would program in certain limits. Its not particularly cheap to issue 1099s. Its not particularly expensive either but issuing a million unnecessary 1099s would probably result in at least a million dollars in unnecessary expense. Postage alone would be close to half of that.Lots do if their payment/1099 system is fairly automated. I can think of three companies who, if they write you a check for a penny you will get a 1099.