File a tax form?

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13-04-2006 11:53:08

does anyone know how much stuff you can receive before you have to file a tax form for it all? i thought i read this somewhere before. thx. )


13-04-2006 13:02:38

Technically, you are required to claim anything no matter the value. However companies aren't required to keep records and send out 1099's for total amounts of under $600. I believe that amount is cumulative over a year period too, so that if you get, say $1000 worth of stuff from one company, then they have to 1099 you even if each gift was under $600.


13-04-2006 13:09:37

so as long as i stay under $600 per site, i wont have to file anything?


13-04-2006 13:54:49

[quoteec22e6d506="clarkkent08"]so as long as i stay under $600 per site, i wont have to file anything?[/quoteec22e6d506]
Again, you're required by law to report everything, whether you actually have to pay taxes on it or not. Whether you report it or not is up to you. If you don't and the company has your SSN (like from a W9) and reports it, then you'll likely be audited and penalized for failure to report income.

Some sites are getting W9's now even for small gifts, on the premise that you could get other gifts from them later that puts you over the $600 mark. Now whether they'll actually 1099 you at tax time next year if you don't go over $600, I don't know.


13-04-2006 14:02:43

ok, i see now. thx for clearing it up.