It is amazing the amount of knowledge that is displayed on this board. Unfortunately, I have come to realize that I don’t have use for any of it. 😀
Just Out Here Ballin’
- Thread starter big_country90
- Start date
That's not accurate. There is a minimum threshold of around $12k that doesn't require filing.
I know that newer payment systems (Venmo, Paypal, etc.) have a new requirement that went into effect this year where they have to report to the IRS over a certain amount. I have numerous tenants at my properties. If they send their rent to me through those systems now, it will be reported to the IRS by those companies (that is new this year). There is a way around that however.
Honest question….
So if I do some consulting for a project and get paid $1,200 every single time I get a 1099…
How is it legal/possible to get an expert Music professional to spend a few hours on something and make good money but less than $12,000 and not get a 1099?
No way these guys are making less than 12k/year
There is no relation between receiving a 1099 and the $12k threshold. Even if they make far less than $12k, they are supposed to get a 1099. But if you use the loophole when paying people (thanks, Friends & Family option on Paypal that doesn't get reported to the IRS nor are Paypal fees taken out), why would they report it?
I know I’m overly conservative with money and IRS… but I live my financial life by these more or less
On principal I’m fine with this - I dont think Uncle Sam has to have his hand in everything. I’m just personally not much of a risk taker on these.
Me, too. I lost $3k on Ole Miss two nights ago. Good thing I was conservative and didn't do my usual $10k - $15k.
I put $250 on fan duel a few years ago.
Im at $450 now (mostly due to specials and bonuses, my wine rate is like 48%),
Betting $10 unit is still really fun and keeps my interest.
And neither is the self-proclaimed "smartest guy in the room" and we know he'd never stay at a Holiday Inn Express...
Basically you can convey monies to someone one of three ways:
1. Loan
2. Gift
3. Payment for services
Loans require payback terms. If it is not paid back and considered totally worthless it is a non-business bad debt to the lender. This can be claimed as a short-term capital loss subject to limitations. Additionally there is Form 1099-C that should be filed and the borrower may need to pick-up the forgiven amount as taxable income.
Gifts to individuals are currently limited to $16k per year. Amounts over that need to be reported on a federal gift return. There is no tax due with the gift tax return but it does reduce the giver's lifetime estate exemption.
Payment for services is just what it sounds like, income to the recipient. Annual payments totaling over $600 are required to be reported to the individual and the IRS.
If the payments are received in the course of a trade or business, and many if not most are, they are subject to self-employment tax. The $12k filing threshold referenced before doesn't apply now, it is lowered to only $400.
Interestingly many lower income individuals receiving 1099 income can file a return and actually generate additional refunds in the form of Earned Income Credits (EIC).
Lastly with regard to baby-sitter money, remember Nannygate? Though this is a little different it is along the same vein.
Nannygate - Wikipedia
Internet is a little slow in first class currently since I have a couple of other streaming videos on (Rufus' daughter's porn is not one of them), so I can't watch that video.
I honestly do not know. I should have removed everything the the exception of "Are you ready this stupid or do you just like being argumentative?"
Was that before or after you were on the phone trying to get your $25 gift card?
I didn't ask for that. Due to the issue, they offered me a $10 gift card (on top of keeping the heat tower/lamp). I told them to keep the $10, because that is more of a slap in the face considering how much time I spent dealing with the issue. So they then did $25.
Today, I took about $300 worth of merchandise back to Dick's that I had bought for a family member when they were visiting. They didn't take most of the clothes with them when they left, so I returned it. It was a catastrophe. Then, when calling their customer service so they could figure it out, it was more of a catastrophe. They put 900 points in my account, which they claim is worth $30.
I told them that they need to send me a 1099 if it gets much higher.
Speaking of 1099s...
Recent IRS statement on them...
nypost.com
www.irs.gov
Recent IRS statement on them...
IRS warns Americans over $600 threshold to report Venmo, PayPal payments
The IRS is interested in transactions involving part-time work, side gigs, and selling goods, according to the agency.
nypost.com
Understanding Your Form 1099-K | Internal Revenue Service
Understand Form 1099-K, Payment Card and Third Party Network Transactions, and what you should do if you receive one.
If I worked in customer service and saw you coming, I’d ask if I could take an early lunch break. Sounds like your interactions with store staff seldom goes well.
Tough love...
He thinks he is a big man and there is no God.
I know all of us are little men and there is a God.
I'm just trying to give him some perspective. I care about his soul more than I care about him.
Want to know how I am positive that you are giant moron?
I'm straight, so I'm not interested. But have you met '06?
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