Also, if I sold items to a consignment shop and received a check, do I need to claim that as income, too?
By Erin813 from Seffner, FL
I know. I saw that online, too but decided i posted too much and I thought that "I will search the IRS website some more" indicated I would see the fine print of selling items. Thanks. I take it back that I said it's another benefit of having little income, since I do have to file taxes, too. No big deal.
It's not "anything over $600 must be claimed" on your personal taxes. You must report ANY EARNINGS if you are following the law! $600 is when a single source of income must also report what they paid you to the government -- and you get a 1099 that lets you know the government is aware of your earnings.
The IRS info says "It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income.
All income earned through the taxpayer's business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040."
And, I think there's no dumb question, too, but I said that to serve as a buffer because I ask a lot of questions so I tend to get negative responses from being inquisitive and asking for clarification to better understand a subject. :) Oh well! It hasn't stopped me too much!
I will check out the IRS site some more! It's that time of year again!
To all: Thanks so much for the facts! I live in FL and I didn't receive more than $600 total so I don't have to file any taxes for that. Hm, so I guess there's another bonus of not having any real personal income! I'm a stay at home mom and slowly starting to sell items online as work from home, but I have yet to really gain any financial profit, obviously. :D
I shared this information about a year and a half ago when asking this same question here at TF. Here's the direct IRS link I finally found back then when no one really knew a detailed answer. Although this IRS link shows as dated 2007 the rules are still the same (I just double checked if they had changed via the current IRS website and it's definitely still the same):
Here's the original post for when I questioned the same subject:
PS - No question is a dumb question. What is dumb is not to ask. :-)
latrtatr is correct, ThriftyFun sends out 1099 forms to anyone who has been paid more than $600 in a year.
It would probably be best to check with whoever is doing your taxes to make sure. The tax laws change from year to year and it is better to be safe than sorry. The IRS has a lot of helpful information on their site:
Thanks for all the contributions!
I would check your state income laws, here we cannot earn over $600 or it has to be reported as taxable income. TF will be obligated to report your earnings if over the limit. Others will most likely know more of the other legalalites for you.
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