1099 Forms

[dwainestroud]

Assuming I make over $600 this year (I’m new), will my earned income be based on the $5 per gig or the $4 we actually earn from the gig?

[thepromogirl]

How are you getting paid, Paypal?

[theslackjaw]

Seeing that you are in the US, since you never see that $1, and you only ever get $4 from each sale, you will only have to claim the $4 per sale. We would have to claim it if Fiverr gave us the full $5 dollars from each gig and then charged us at the end of every month based on the volume of sales. (Etsy works a little like this.)



But since they don’t do that and we never actually see that extra dollar from each gig, we don’t have to claim it. (The same goes for any Paypal or Payoneer fees that are taken out when you transfer your money into those accounts. Since you never see that money, you don’t have to claim it.)



Now, I’m saying you don’t have to claim it, because legally you don’t. But you “can” if you want to be absolutely safe, and then deduct the fees to lower your overall income. But that is the overly thorough and very tedious way to do it.



DISCLAIMER: I’m NOT an accountant or a tax lawyer. I’m just someone who knows a lot about taxes. Take my advice with that understanding and be sure to double check with someone who is certified before you make any major tax or accounting based decisions. Especially when dealing with small business type stuff. That is all…

[dwainestroud]

I will be using PayPal.

Will my 1099 come from PayPal or Fiverr.com?

[genuineguidance]

You will NOT get a 1099 from Fiverr. Fiverr is based in the UK and does not follow US tax laws. It is YOUR responsibility to claim that income.



PayPal WILL send a 1099 IF you meet their requirements to get a 1099. I think it is 20k in income or 200 transactions. Go to PayPal and search for their requirements to get a 1099 from them.



Otherwise, just include it on your tax return as business income on your Schedule C. It’s actually very simple to figure out. Don’t add that extra dollar Fiverr gets - why would you claim money you never saw or earned? LOL The government would love for you to claim you made a ton, every dollar adds up, so they can take close to 30% of your independent contractor earnings (this is of course, if you don’t have a lot of deductions that will save you $) so, they won’t complain if you claim money you never saw! LOL



Get an accountant if you don’t understand how to file or do your self employment taxes.



GG

[dwainestroud]

Ah, so no 1099. This will fall under "Other Income’

Gotcha!