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Tax Questions

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Hello,

I have been contacted about writing online reviews for products I receive for free. They require me to fill out a W-9 form before I am accepted, which I understand is for tax reporting purposes. From what I understand, they will also send me a 1099-MISC form to fill out if they send me over $599 worth of products within a year. Please excuse my ignorance, but I have some questions for you tax experts.

1. Just so I am clear, if they send me less than $600 worth of items in a year, I do not have to report that on the tax form?

2. Due to health issues, I am unemployed, have never even had a job, so I have no income. I am living with, and being supported by, an older relative. Since I have no income, would I still be required to fill out a 1040 form, or any other type form? I am absolutely clueless about all this stuff.

Thank you very much for your time.
 


Taxing Matters

Overtaxed Member
Hello,

I have been contacted about writing online reviews for products I receive for free. They require me to fill out a W-9 form before I am accepted, which I understand is for tax reporting purposes. From what I understand, they will also send me a 1099-MISC form to fill out if they send me over $599 worth of products within a year. Please excuse my ignorance, but I have some questions for you tax experts.

1. Just so I am clear, if they send me less than $600 worth of items in a year, I do not have to report that on the tax form?
Not correct. Every penny you make from this activity is taxable income to you. You must report all that income you get regardless of whether you receive a Form 1099 for it or not. That's true for all taxable income; you are obligated to report it whether or not the person paying it to you reports that income to the IRS. This assumes, of course, that you have at least the minimum income needed to trigger the requirement to file the return.

2. Due to health issues, I am unemployed, have never even had a job, so I have no income. I am living with, and being supported by, an older relative. Since I have no income, would I still be required to fill out a 1040 form, or any other type form? I am absolutely clueless about all this stuff.
Even if you have no other income you must file a return if you have at least $400 in self-employment income. So if this is your only income and you make at least $400 you must file a return and pay the tax even if the person or company paying you does not file a Form 1099 for it. Of course, at that amount of income you would owe only a bit of self-employment tax (which is how self-employed persons pay their Social Security & Medicare tax).
 
Hello, and thanks for the quick response. When you say,
Even if you have no other income you must file a return if you have at least $400 in self-employment income
, do you mean the actual worth of the items I receive? I have no actual cash coming in.

Again, thanks for taking the time.
 

ShyCat

Senior Member
From what I understand, they will also send me a 1099-MISC form to fill out if they send me over $599 worth of products within a year.
You will not be filling out a 1099-MISC form. They will do that. The info on that form is reported to the IRS and a copy is sent to you for use in filing your tax return.
 

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