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Njsurveyman

Neilson Sent Me 1099-Misc Tax Form

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Njsurveyman

It seems they are serious about reporting income over $600 to the IRS and sent me a 1099-misc indicating I fell into that category. However, I was very upset that just because I had to enter in a 1099 in my tax return, Turbo Tax forced me to upgrade to their Deluxe Edition, forcing me to pay over $100 to file my taxes, when they are normally free to file. Also, since they never deducted taxes in my paychecks, I have to pay taxes on the entire amount. I am definitely considering not sticking with them for another year, because of this. Yeah, I still made some money after all the deductions, but hate owing taxes now because of this. Any thoughts or comments are welcome.  

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nj07208

Don't know what to say except that kinda sucks. The only one I come close to $600 on is Opinion Outpost. I won't cash out until January if it's going to take me over.

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JD

They're serious because it's the law. Best thing is IF you can monitor your income to avoid $600 in income from Neilson. OO requires you to give them the info for a 1099 when your cash out hits $500 but AFAIK only sends a 1099 when you've made over $600. Don't give them the 1099 info at $500 and you cannot cash out until you do.

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Njsurveyman

I agree JD and I understand they are following the law. I was just oblivious that the law requires reporting of income over $600 from any individual source. (thought it was  a higher amount). I also thought perhaps the money earned was considered "gift money", not self employment income.  

However, IF I knew ahead of time that going over $600 would have caused this, then I most certainly would have intentionally stopped participating as soon as I got close. I never realized that was the magic number.  

 

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JD

And in some cases it is not even $600 AFAIK. Like those checking account bonuses for opening a new checking account which people love to chase. Believe those are reported no matter the amount because they are income. However, credit card sign up bonuses are not taxed as they are a discount on your purchases. Oh it would be nice if places like Nielson were gifts. The odd site that does not report to the IRS if over $600 is Swagbucks as it is a mix of cash back on purchases if you do those and payment from surveys, etc. One of these days the IRS is going to bust that site for non-reporting. As if they couldn't separate out the different sources and report.

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Njsurveyman

Yeah, I think Swagbucks is very similar to Ebates (same idea). I know with Ebates, you only have to report it to be taxed depending on the state you live in (as it apears in the membership agreement). Personally, I look at these sites as a store discount that you collect after the fact. However, Swagbucks is tricky because they also offer surveys. I prefer Ebates....because through them, you can buy from just about every chain store in the country and they pay you every 3 months with only a $5 min to cash out.

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nj07208
On 2/5/2017 at 0:25 AM, JD said:

They're serious because it's the law. Best thing is IF you can monitor your income to avoid $600 in income from Neilson. OO requires you to give them the info for a 1099 when your cash out hits $500 but AFAIK only sends a 1099 when you've made over $600. Don't give them the 1099 info at $500 and you cannot cash out until you do.

I've never had to supply any info to OO for a 1099 and I've made more than $500 every year I've been a member.

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Njsurveyman

After doing more research on this, technically we are supposed to report ANYTHING we received from survey companies in a calendar year, unless it specifically calls it a "gift". However, since anything under $600, most likely won't affect your tax bracket anyway, they are not required to report your earned income to the IRS until you reach that amount or higher by law.

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neminem

Yeah, the bigger issue is that Turbotax basically has a monopoly on tax-filing, so they can get away with this sort of gouging. (They don't technically have a monopoly, but in my experience, they're the only tax preparation software that doesn't make a complete mess of everything, so they're kind of a de-facto monopoly for the moment.) I'm resigned to paying for Deluxe because I have significant investments anyway (though, do keep in mind: it is always way cheaper if you buy it from Amazon, which, conveniently, I would expect everyone here to have a pile of Amazon credit anyway). But this year, it looks like even that isn't going to be enough - my wife has a little bit of deductions she can take from personal side-ventures, which it sounds like is going to make us upgrade all the way to the Small Business edition, which is total BS.

Neilson didn't do anything wrong - but Turbotax prices are highly irritating.

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born2fight

$600 or more required to be reported on Form 1099-MISC form. There is a limit of $20000. Many contractors think this means they don’t have to pay taxes unless they make over $20,000, which is very incorrect! And I faced the heat. I was subjected to an audit due to not understanding the form properly. Now I complete this tax 1099 form with my bookkeeping soft. Its easy now. 

But tips is write all business expenses. Use double entry bookkeeping if needed. And don't forget to pay quarterly taxes.

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