Does Fiverr send out 1099\'s? How do I do my fiverr taxes?

[krissyandej]

Hello, this is my first year on fiverr, and I don’t know if fiverr sends out 1099’s. I saw a couple of posts people have written about PayPal doing it, but I am not sure about that.

I figured the best people to know would be people that have actually done it before.
Any kind of information on this matter would be greatly appreciated.

Thank you in advance everyone.

                                              -Krissy- ;)

[fonthaunt]

Fiverr does not send out tax forms. Sellers don’t work for Fiverr, they are self-employed workers using the Fiverr platform to run their own business. You can check with tax preparers or accountants in your location to find out how they want you to self-report your income. Where I live I can just check a box that says I need to report “other” income for which I did not receive a 1099. I add up my Fiverr earnings and enter the total.

Also, if you spent money on equipment, supplies or used office space in your home, those expenses may be tax deductible! 🙂

[misscrystal]

Paypal only sends 1099s if you made over $20,000 and had at least 200 deposits. You can get a software program that walks you through self employment taxes or find someone who prepares taxes for people.

[krissyandej]

Thank you, that helps me as well. I read that PayPal sends out 1099s, but I wasn’t sure how much it took for them to send one out.

Thank you.
🙂

[krissyandej]

Thank you. That helps me a lot. I did contact a tax professional. She said the same thing more or less. I appreciate your help.

🙂

[theblogsage]

I don’t mean to use your thread but it really is the same question and the sellers answered them! But is it possible that we would owe money on taxes if they see how much I made? I love that it’s possible to write off my graphic river purchases and such. I see we have a function here on Fiverr on the Revenues page we can download a CSV, is this sufficient for the tax preparer?

[fastcopywriter]

You only need to declare income above $600 a year. Either way, Fiverr let’s you import your finances, or you can use PayPal to see how much money you’ve gotten. Remember that a good accountant should help you take every deduction. Deduct your cable bill, internet bill, etc. If you’re making serious money, don’t go to HR Block or one of those tax preparers, an actual accountant is what you need.

[theblogsage]

Ok thanks, I think I’m at about $700 total, so I can just download my revenues and any receipts of purchases online and off that assisted me in earning that lifetime total since I started last April? Lol funny because my tax preparer is actually HR Block but it should be fine since I don’t have much. Thanks for the info @fastcopywriter . Customer Support just sent me a CSV of my revenues when I asked them about claiming taxes since this is my first time claiming Fiverr or any freelance task.

[fastcopywriter]

You can go to Revenues, scroll a bit down and then you’ll see “Export to CSV.” You can also go where it says Show Everything, 2016, etc, and adjust it accordingly.

A good accountant will cost you $300 to $500, not worth it if you only made $700. But let’s say you have a job that pays you $45,000 a year plus your Fiverr income, then it might be worth having a free consultation with one, see what they can do for you. If I pay $500 and then the government gives me a tax refund of $1,500 or $2,500, I consider that a win.

Ironically, my first accountant was HR Block, but back then I didn’t own a home, so my taxes were simpler. Still, I wonder how much money I ended up overpaying to the IRS. It’s not like the taxman is in a hurry to give you back your money.

Although there is one exception, there was a guy who had his property seized and sold at auction for failure to pay taxes. His taxes were like $30,000 and his property sold for a million, so for years the government was looking for him, and eventually a detective found him. Can you imagine? That poor senior became an instant millionaire.

[fastadking]

Take your Fiverr money out just once a week and no matter how much you make Paypal won’t 1099 you

[theblogsage]

oh wow, haha ok Thanks great information here, you always know what’s up, I’ll have a nice talk with tax lady 🙂

[misscrystal]

True but I would rather pay taxes and be able to sleep at night. It’s funny how things have a way of catching up to you sometimes.

Remember we still have to withdraw the money from Paypal to a bank account, and the IRS usually can see how much goes into your bank accounts. Not good if there is money going in but no taxes paid on it.

So even if you don’t get a 1099 pay your taxes.

[strawintogold]

Why is that? I thought they HAD to 1099 you if you have more than 200 transactions and make over $20,000. How does transferring money once a week stop that?

[isholawasiu]

Am not sure about that

[isholawasiu]

not sure about that

[misscrystal]

Once a week would be 52 transactions so you would not get a 1099 but still the advice to not pay taxes just because you don’t get a 1099 is asking for problems. The IRS can see how much money goes into your bank from Paypal.