Hi guys. I know a person who would like to get involved with the freebie thing, but his family is what would be classified as "low income", ie. his family recieves government benefits. I showed him a few sites, but the first thing he asked me was about the whole W-9 deal. Would doing a freebie site (over $600) detract from these benefits? I haven't seen anything about that posted on the internet ( maybe we are searching the wrong thing?). Any help would be appreciated. Thanks a million!
His income from freebies will be taxable income, and any site that collects a W9 is almost certainly going to report it, especially if over $600. Note that any site can report any amount, it could be less than $600. That's just the dollar threshold at which it becomes mandatory for them to document the payee and issue a 1099. That said, I've yet to hear of a freebie site issuing a 1099 for less than $600 -- although of course that doesn't absolve one of the legal obligation to claim the income, which is always taxable regardless of amount.
If they are on the income threshold with regards to receiving their government assistance, then depending on how active they are in the freebie scene, yes it could certainly push them over the edge and cost them some benefits.
Of course some would argue that it SHOULD decrease their benefits, but I won't go there.
thanks so much! I will tell him right away. You are sooo helpful! You should be a Saint.
If it weren't for our many nights of drunken debauchery, he would be one by now
[quote1837243a24="CollidgeGraduit"]If it weren't for our many nights of drunken debauchery, he would be one by now[/quote1837243a24]