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Easy money?....Ooops, what about the taxes?

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>Charlotte<

Lurker
What is the name of your state (only U.S. law)? NC

I keep editing this. I'm having a hard time asking the question in a way that makes sense, because if you've never heard of this you're going to wonder what the heck I'm talking about. It might help if I name the site, but I'm not sure that's kosher, TOS-wise.

There is an Internet site on which people (companies, web sites, individuals, whatever) who need certain tasks performed can upload a request to the site where it is listed along with thousands of other "Requesters" tasks. Anyone, such as myself, can sign up as a "Worker" and perform these tasks which pay a certain amount per task. The site itself collects a fee from the Requester. For instance, I just transcribed a 10 minute interview and made $4.00. This morning, I edited an article for grammar and spelling, and yesterday I verified on a retail site that pictures of items matched the descriptions.

I started out doing this because I thought it was an interesting way to make a few bucks, but surprisingly it's really starting to add up. At the rate I'm going, I'll be well over the $400 threshold for 1099's (it is $400, isn't it?) by the end of the year. My question is, although I'm making that money in one "place", it's being paid to me by many different Requesters. Do I only need a 1099 if I make $400 from one Requester, or do I need a 1099 if I make $400 total from the site?

Here's an analogy: this is sort of the Internet equivalent of going around to all your neighbors and cutting their grass, washing their cars, walking their dogs, etc.

So what's the deal with how 1099's work in this scenario?
 


>Charlotte<

Lurker
By the way, the answer to the question "What did the site say when you asked them?" is "Consult your tax professional or the IRS".

The site has absolute minimal involvement. They just provide the web space, collect my money (and their fee) from the Requesters, and transfer it to my bank account upon request.
 

justalayman

Senior Member
Not positive myself but I thought the threshold for a 1099 was $600. That $600 would be from one payer, not a cumulative group of payers. It is not up to you to ask for a 1099. The payer would be required to provide one if the limits are met but 1099's are not provided by individual parties. They are for companies paying a person.

this does not remove any requirement for you to include this income in your tax filing that may be applicable.
 

anteater

Senior Member
Just an addition...

The $400 is the self-employment earnings threshold for filing Schedule SE - Self-Employment Tax. And the income should be declared whether you receive a 1099 or not from the payers.

[Oops.. Did not read justalayman's second sentence closely enough. Sorry for the repeat.]
 
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justalayman

Senior Member
Just an addition...

The $400 is the self-employment earnings threshold for filing Schedule SE - Self-Employment Tax. And the income should be declared whether you receive a 1099 or not from the payers.

[Oops.. Did not read justalayman's second sentence closely enough. Sorry for the repeat.]
but you gave specifics;)
 

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