So I'm a noob college student. I've done a fair amount of freebies in the past, but I stumbled on this site and now I must wonder. If people are paying out 50% of a reward for referrals ect. and taxes are roughyl 30% is this stuff worth it for 20%
I mean what are the tax implications of freebies? Do your expenses count against the actual income?
If you get an item that is worth less than $600, they do not tax it. Also, if you want to save on referral money, I'd suggest doing DIY sites. I stopped doing referal sites and now only do DIY. I think there much easier, cheaper, and better, as you don't have to worry about being scammed, or count on people to green. Sure you have to complete more offers, but it'll still be a lot cheaper than getting refs, plus you might get some decent stuff with the offers. I'm just doing a bunch of $500 gift cards right now. That way no need to rely on people, and no taxes. Just my 2 cents.
[quote0a082e83a0="slambam"]If you get an item that is worth less than $600, they do not tax it.[/quote0a082e83a0]
Whoa, see... that's why we keep telling people not to discuss tax advice on the forums. That is COMPLETELY wrong information.
ALL FREEBIE INCOME, regardless of value, is legally taxable income. It could be $10, doesn't matter. Whether any tax is actually paid depends on the individual's tax situation and whether their total income after deductions and credits meets the taxable threshold. So nobody needs to be telling anybody else whether they will pay tax or not, unless you happen to be their tax accountant.
$600 is the threshold at which a company must collect a W9 from you, and submit a 1099-MISC to you and the IRS at tax time. This has NOTHING to do with whether you owe taxes on the payout or not. $600 is simply the minimum amount that must be documented by the payor.
I'm going to close this topic before it devolves into yet another tax discussion thread. It's been covered a thousand times already, just search the forums for past discussions. I grow tired of policing these discussions so I'm just going to start closing them.
[b0a082e83a0]ONCE AGAIN PRACTICE COMMON SENSE AND DO NOT ASK FOR, OR TAKE, TAX ADVICE ON A PUBLIC INTERNET FORUM![/b0a082e83a0]