Arggghh -- anyone else have an issue with sponsors who are sending a 1099 to everyone - regardless of how much they made for the year?
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Arggghh -- anyone else have an issue with sponsors who are sending a 1099 to everyone - regardless of how much they made for the year?
Yes. On one sponsor, sold a trial membership at $30.00. Earned $15.00 on the sale. Was never paid out because I didn't meet the minimum. 1099 came Tuesday for the $15.00. I was a little shocked.
The IRS says, "You legally do not have to supply a 1099 for anything at $599.99 or less." It's more or less your discretion. What it is, the program doesn't want to pay taxes on your $599.99 or less, so they 1099 you.
It's a little messed up, but in actuality can you blame them. But with taxes, when a company files. You can put in a description that says perhaps "Affiliate Payouts" and you put in the total amount. I don't know why they do it.
I know a lot of programs send them out to all affiliates to avoid calls - you can't imagine the calls from people who want their 1099s for $150, and the legwork it takes in some programs to find out how much they made over the course of the year.
This year, some of that <$600 activity might be due to the misinformation spread by FOX News and Republicans about the Health Care Reform law passed in the last Congress requiring such.
Yesterday, the US Senate passed a bill further defining 1099s for >$600, as part of the Republican agenda to take away health care from the middle class and needy.
But I think most of that misinformation was dishonest politicking by anti-American Republicans and FOX News (which is Australian), simply spreading their agenda of fear.
From what I'm reading on the net, it looks like we have to show the 1099's when we file even if they are under the $600, and pay any tax due on it of course. Otherwise the IRS will send you an "updated" tax due letter, along with possible penalty and late fees.
It might take 'em two years, but it's a "when" not an "if" they notice you didn't include the income.
:img15: I don't look so good in stripes
Yea Bec, I agree... Orange and stripes aren't really your color :nunu:Quote:
Originally Posted by Bec
Yes, your reading is right. Anytime you receive a 1099, that means it's already been reported / will be reported to the IRS when they do their taxes, etc.
There's 3 things in life that everyone hates....
Death
1099's
Paying Fees / Being in debt.