freebie taxes

Live forum: http://forum.freeipodguide.com/viewtopic.php?t=49536

tmberwolff

09-12-2006 14:59:59

Didn't want to derail another topic, so I posted this here... I'm a bit curious... How many top freebie people report their freebie earnings to the IRS?

I had to, since I used the money to buy a house, but I don't think I would have otherwise... how many others are dodging taxes?

and, rather than get people in trouble with the IRS, maybe the question should be in a strictly hypothetical sense? Hypothetically, would you claim freebie money on taxes if you made a signficant amount?

geej86

09-12-2006 15:09:33

i will be declaring for the first time next tax season (3k). I'm really curious to see what amount of $ i'll be paying/receiving since i only earned like $1500 the entire year.

bruman

09-12-2006 15:09:48

Is there any difference between freebie money and real money?

TFOAF

09-12-2006 15:11:44

You bought a house with your freebie earnings? O_O

dmorris68

09-12-2006 15:30:45

[quote3705684e84="bruman"]Is there any difference between freebie money and real money?[/quote3705684e84]
lol

If you submitted a W9, you better report it.

Dr. Doom

09-12-2006 22:44:53

I got one of those DIY iBooks everyone was doing earlier this year and I remember sending in an IRS form to receive it (can't remember which one).

So much time has passed that I'm sure I've lost any paperwork from back then. I wonder if I'll get in major trouble for not reporting it...

climed

09-12-2006 22:59:19

[quote21a9ea35b0="TFOAF"]You bought a house with your freebie earnings? O_O[/quote21a9ea35b0]
shock I had no idea freebie sites were so lucrative.

zwarrior99

10-12-2006 06:25:10

We should get a summary from the freebie sites at least those that actually submitted the w-9 we sent in.

dmorris68

10-12-2006 07:56:26

If they collected a W9, then expect them to send you a 1099-MISC in January or so. It's one of the forms, like a W2, that you use to file your taxes. If they're going to deduct the payout as a business expense (and who wouldn't?), they must file a 1099 and send you a copy to file with your taxes. They send a copy to the IRS so the IRS knows you received the payout. If you don't claim it, and it would have changed your tax liability in any way, then you committed tax fraud and subjected yourself to penalties and interest.

Gigante

10-12-2006 10:46:01

Hypothetically, I did not report anything last year.

tmberwolff

11-12-2006 12:12:44

[quote169dd33de1="TFOAF"]You bought a house with your freebie earnings? O_O[/quote169dd33de1]

http//forum.freeipodguide.com/post-459309.html#459309[]http//forum.freeipodguide.com/post-459309.html#459309

[quote169dd33de1]Is there any difference between freebie money and real money?[/quote169dd33de1]

Hypothetically, if someone did 100 sites for $500, there would be no W-9, and the individual amounts would be under the IRS radar. Therefore, you could duck under the IRS with $50,000. Until you made a big purchase and got audited...

you can claim ignorance of a couple hundred, but when you get past a couple of thousand, the IRS stops laughing...

Admin

11-12-2006 13:03:42

there are so many good reasons not to commit tax fraud. seriously, and this is from someone that pays unbelievable amounts of tax, just pay it. its your moral obligation and the right thing to do, not to mention the law.

Gigante

11-12-2006 15:45:17

yup yup. gonna be a pain in the ass to file this year but gotta do it.

junkie06

11-12-2006 17:56:11

You also have to make a certain amount of income. If you dont reach that min income then you dont have to file

nobody2000

11-12-2006 18:21:12

I made a thread about this kinda in the DIY forum and like 90% of the people bragged about how they never pay taxes, and some other 5% were like "ppl are too young to file taxes here." I thought that if you file a W9, you're making income in excess of $600, therefore, by federal and pretty much all states' standards, you have to report your earnings.

I know young kids prolly put it under their parents. But so many ppl in that thread seemed to have not reported ever.

Oh well, file taxes, avoid shit.

Gigante

11-12-2006 18:41:22

That's because the forum is full of 12 year olds. lol

x323smostwantedx

11-12-2006 18:45:15

Im 18 dont work and ive done over $2k of sites, IDK what's gonna happen with me.

CollidgeGraduit

11-12-2006 18:53:11

[quote0802f36f51="x323smostwantedx"]Im 18 dont work and ive done over $2k of sites, IDK what's gonna happen with me.[/quote0802f36f51]

Same thing any person who earned $2000 in a year would do? shrug

ILoveToys

11-12-2006 19:00:50

I received a plasma from nuitech...Is it true if I can find it advertised for less that I can claim the advertised price?

Gigante

11-12-2006 19:59:46

It is at the time they buy it, not anytime within the next year that you find it cheaper.

amir89630

11-12-2006 20:21:45

but since it's a gift....


when aunt sally gives u a plasma for Christmas, you don't pay taxes on that.

doylnea

11-12-2006 20:26:41

there's a very educational post in the DIY forum about this very topic...

kdollar

11-12-2006 20:56:02

[quote5c425e436a="doylnea"]there's a very educational post in the DIY forum about this very topic...[/quote5c425e436a]

yea i believe it says, dont get tax advice on a forum for free gifts!!!

dmorris68

12-12-2006 06:47:14

[quote3f422c8d3a="kdollar"][quote3f422c8d3a="doylnea"]there's a very educational post in the DIY forum about this very topic...[/quote3f422c8d3a]

yea i believe it says, dont get tax advice on a forum for free gifts!!![/quote3f422c8d3a]
We have a winnah!

But I will respond to this

[quote3f422c8d3a="amir89630"]but since it's a gift....


when aunt sally gives u a plasma for Christmas, you don't pay taxes on that.[/quote3f422c8d3a]
Technically, yes -- that is still taxable, if it meets certain criteria. Typically the giver will be responsible for the tax, but you as the recipient can be responsible for it too.

(this is listed under the business area but I believe is still relevant)
http//www.irs.gov/businesses/small/article/0,,id=108139,00.html

[quote3f422c8d3a="IRS"][b3f422c8d3a]Q What can be excluded from gifts?[/b3f422c8d3a]

The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts are not taxable gifts.

1. Gifts that are not more than the annual exclusion for the calendar year.
2. Tuition or medical expenses you pay for someone (the educational and medical exclusions).
3. Gifts to your spouse.
4. Gifts to a political organization for its use.

In addition to this, gifts to qualifying charities are deductible from the value of the gift(s) made.[/quote3f422c8d3a]
I would expect that exception #1 is [i3f422c8d3a]most likely[/i3f422c8d3a] what would prevent a Christmas gift from being taxable. Unless your Aunt Sally is a rich aunt who gives away $100K worth of Christmas gifts every year.

Bottom line is folks, as we keep telling you tax liabilities vary from person to person. Nobody in this forum can or should be telling you how to file your taxes. Consult a professional if you can't figure it out yourself. Just remember that ignorance of the tax law (as in any other law) is no excuse, so if you don't do your own due diligence in figuring out what you should do, you will be held responsible if you don't get it right. ;)

CollidgeGraduit

12-12-2006 06:55:38

[quotea61c39b6f2="amir89630"]but since it's a gift....


when aunt sally gives u a plasma for Christmas, you don't pay taxes on that.[/quotea61c39b6f2]

You also don't do 2 silver, 4 gold, and 2 platinum offers plus get a referral for aunt Sally either.