income tax?

Live forum:


15-02-2005 18:55:21

Remember when Oprah gave away all those Pontiac G6s and the people had to pay prize tax/income tax on them?

What's the deal with the stuff from notebooks4free? These are the highest-valued items so far from all the free sites...because it's over $600, do we have to claim the prize on our taxes?

I would think not, since offercentric/whoever paid for each one and therefore income tax and sales tax have already been paid somewhere down the line...

Any ideas? My boyfriend will only let me send the $1000 paypal to his account (he already upgraded awhile back) if it's tax-free. Help!


15-02-2005 20:02:34

I'm not sure, but how much $$$ do they take from a personal paypal account versus a pro one?


15-02-2005 20:29:19

They take nothing from payments received on personal accounts, they take 2.9% + $.30 on payments received on premier accounts. There is a scale but you probably won't ever be subject to the other rates.


16-02-2005 00:24:17

I'm more concerned about the possibility of a tax - since my boyfriend already has a premium account, I won't need to upgrade mine in order to get the $1000. But if I had to pay even a 25% tax on that, that's $250!! I just want to make sure. \


16-02-2005 03:23:51

So I get charged no PayPal fee for the $1000 deposit in my account?


16-02-2005 11:49:06

gifts that are $10000 or less are tax exempt. people had to pay on the cars cause they were 20000 (at least)


16-02-2005 12:59:49

Thank you SO MUCH for that info. I figured as much, because I googled it, and even the eBay forum I found alluded to no taxes on sub-$10k paypal deposits.

@PodTopia you WILL get charged a paypal fee. The $1000 deposit from OC will require to upgrade your PayPal account in order to get the money.

However, you can downgrade your paypal account once in the lifetime of the account, or you can setup a second account with a different bank account and credit card number (if you have access to that).


16-02-2005 16:01:58

I do have access to a different bank account and credit card. Shifuimam. Thanks very much!


16-02-2005 18:23:19

You're welcome! I looked up in PayPal's help section, and users are allowed to have one personal and one premium account. Just FYI! )


16-02-2005 18:25:10

[quote2f18129427="guest"]gifts that are $10000 or less are tax exempt. people had to pay on the cars cause they were 20000 (at least)[/quote2f18129427]

$1000 from offercentric will not be considered a gift. You "earned" it by referring people to those advertisers.


17-02-2005 00:24:56

as long as it's tax-free, I'm happy.