Filing Taxes?

How do you file taxes on money earned through sites? I made $1200 on one site and over $1000 on another. How do you file the taxes on there for these? Does anyone know? Thanks.

Did you submit a w9 for those gifts? If so, you should receive a 1099 form in the mail.

It's just regular income

I'm debating on whether I should do mine own this year... I have turbo tax installed and rdy but I just don't want to screw it up...

How much money does H&R Block cost?

I heard they have some sort of program like TurboTax, but you can call for help too...

If you check out their homepage they have three options with various price plans available.

I used Turbo Tax for mine and it worked good. They pretty much walk you through everything so I think it would be hard to mess it up.

[quote591fa95d94="Jeremiah1218"]I used Turbo Tax for mine and it worked good. They pretty much walk you through everything so I think it would be hard to mess it up.[/quote591fa95d94]

Well It gets tricky, i guess I have to file two taxes? I used to work in PA now work in NC...filing for my wife and myself and have all the "other income" from freebies sites.

Oh I see, yeah mine was pretty straight forward I think so it was easy but I'm not sure how well it would work in your situation...I actually didn't even do it, my 14 year old sister did and she figured it out just fine and she also did my moms and they approved both of ours so apparently it was done right. You could always try it out and if it gets too complicated or you're confused about anything go to a professional service instead.

I use TaxCut by HR Block and it works out OK, I'll end up getting $300 + the $300 bonus check so a total of $600.

It costs $14.95 to use the H&R Block online. That is the basic, with no support if you get stuck. I think it is $29.99 to use the premium.

I can vouch for TurboTax. It's relatively easy. I used it last year to do my taxes as well as my mom's and brother's. I didn't even have to pay for the software (there are torrents for it). At the time, I too had to file some misc. income/freebies and it wasn't difficult at all. Ice, I'm pretty sure to file more than one W-2 in TurboTax, you simply "add W-2" and repeat the steps you did for the first W-2. I plan to use it again this year, but I'm still waiting on my 1099s as I haven't received a single one yet, but am expecting 3. I hope they show up.

I've used TaxCut for 9-10 years, and for several years before that I used TurboTax. I like TaxCut better as it works exactly the same way but costs less.

Like CG said, freebie income is regular income. You just add it to the pile. Cash is easiest because you know exactly how much it is, but products like plasmas and such can be harder to valuate. You should wait for the 1099 forms containing the exact value reported by the site, which officially are supposed to be mailed out by today. However, many sites drag their feet, and some may not send them at all. But that doesn't alleviate the legal requirement for you to declare the income.

[quote3b273efdfb="mistertomlinson"]I can vouch for TurboTax. It's relatively easy. I used it last year to do my taxes as well as my mom's and brother's. I didn't even have to pay for the software (there are torrents for it). At the time, I too had to file some misc. income/freebies and it wasn't difficult at all. Ice, I'm pretty sure to file more than one W-2 in TurboTax, you simply "add W-2" and repeat the steps you did for the first W-2. I plan to use it again this year, but I'm still waiting on my 1099s as I haven't received a single one yet, but am expecting 3. I hope they show up.[/quote3b273efdfb]

I might have to try it myself then )

I"m still waiting on two 1099, I got another one today, i'm gonna probably owe money, lol

I use TaxActOnline.com and it's free. Just finished my taxes yesterday.

Thank you everyone for your responses. I have used turbotax for the past three years, but I never did any of this freebie stuff until a year ago. I just didn't know how to input it so they know what I am claiming.

Are they supposed to automatically send out the w-2 or was I supposed to send something in to get them. I just don't want to mess anything up.

Most sites should ask for your W-9 form that you fill out along with an ID - when you have reached the $599 amount. At least the ones I worked did. Still waiting on the 1099's. Yikes.

I used mainly my paypal history for income/expenses since I got paid for doing sites too. I realized I really didn't make much profit from it. Haven't submitted it all yet though.

[quotefcd54045a5="angelwld125"]Are they supposed to automatically send out the w-2 or was I supposed to send something in to get them. I just don't want to mess anything up.[/quotefcd54045a5]
They're supposed to send you a 1099-MISC, and the income is normally entered in the section where they ask for 1099 income. As I mentioned, sometimes 1099's come late or not at all. At some point, you should be prompted to enter any additional income for which you have no W2, 1099, or other form. Just put it there.

If they didn't send you anything, you should be more worried that they aren't filing their taxes then you should. An honest business will give you the paperwork on request (or automatically).

You should of received your 1099 by now to file them.

[quote11bb4679ad="gmario"]You should of received your 1099 by now to file them.[/quote11bb4679ad]
Not necessarily. The IRS guideline says they should be [i11bb4679ad]mailed[/i11bb4679ad] by Jan 31st, and many businesses wait until the last minute, if not later. So it could be a few days yet.

I've not received mine from I-Deal yet either, and they can always be counted on to send one.

I used the TurboTax free edition becouse there is no state tax in Nevada. It was very easy, I filied on the 20th and got my refund today $1384!

[quote480f5de1fc="dmorris68"][quote480f5de1fc="gmario"]You should of received your 1099 by now to file them.[/quote480f5de1fc]
Not necessarily. The IRS guideline says they should be [i480f5de1fc]mailed[/i480f5de1fc] by Jan 31st, and many businesses wait until the last minute, if not later. So it could be a few days yet.

I've not received mine from I-Deal yet either, and they can always be counted on to send one.[/quote480f5de1fc]

Yep, no ideal taxes yet and i sure got mine last year and i'm dead sure it will be here within the next couple days, heh

Anyone know where I can file state tax for free? I don't feel like paying $40 to file with TaxCut..

Oh yea oops I figured everyone did them early like me 8)


[quote71c0fc3d10="dmorris68"][quote71c0fc3d10="gmario"]You should of received your 1099 by now to file them.[/quote71c0fc3d10]
Not necessarily. The IRS guideline says they should be [i71c0fc3d10]mailed[/i71c0fc3d10] by Jan 31st, and many businesses wait until the last minute, if not later. So it could be a few days yet.

I've not received mine from I-Deal yet either, and they can always be counted on to send one.[/quote71c0fc3d10]

[quote273cf27637="EatChex89"]Anyone know where I can file state tax for free? I don't feel like paying $40 to file with TaxCut..[/quote273cf27637]

Secondly, I have been expecting 1099-MISCs from I Deal, Brandarama and 2DollarDeal. It seems strange that I haven't received ANY of them yet. I don't know what to do (I know by law, I should file regardless of whether or not they report it to the IRS).

lol

YOU HAVE BEEN DQ'd!!!

[quote6823817d88="EatChex89"]Anyone know where I can file state tax for free? I don't feel like paying $40 to file with TaxCut..[/quote6823817d88]

Depends on the state you are in. PA has a free site if you look hard enough

[quotecf5a7af957="Denise07"]It costs $14.95 to use the H&R Block online. That is the basic, with no support if you get stuck. I think it is $29.99 to use the premium.[/quotecf5a7af957]

Woah! Don't pay for that. Go to the IRS website and search something like free taxes. If you follow through a bunch of the links you get the EXACT same thing for free.

Edit Here is a link where you can find a bunch of free places to file taxes. H&R Block is an option and one that I used. And you have to follow it from the link or else it does cost $15.

http//www.irs.gov/app/freeFile/jsp/index.jsp?ck#Company1

Got I-Deal's 1099 today. Ouch.

I haven't recieved over $500 from any site yet, but smaller amounts like $360. I haven't even reached $500 from any particular network. Do I need to claim these in my taxes????

[quote554cb2f388="tucker1003"]I haven't recieved over $500 from any site yet, but smaller amounts like $360. I haven't even reached $500 from any particular network. Do I need to claim these in my taxes????[/quote554cb2f388]

Technially you need to report ALL of your income, so yes. But If you have not submitted your W-9 information and didn't make $600 then the network isn't required to (and if W-9 info wasn't sent, doesn't have the info) submit the income to the IRS. So the IRS will not know about it.

Thanks for the resopnse! I gave you some Karma!

Wife got a 1099-G today /

I got a 1099-MISC from I Deal and DollarDeal today... still no Brandarama. I'm ready to file already, dammit!

Does anyone here consider doing freebies as a business when they file taxes?

I looked into it and from what I understand based on your goals when you enter into doing freebie sites it could technially be considedered a business. That's how I looked at it and I was able to drastically reduce my income by reviewing paypal recipts for Commission/Fees paid.

[quote3ee8f74271="stueybaby17"]When you enter into doing freebie sites it could technially be considedered a business.[/quote3ee8f74271]

I don't see how you can look at doing freebie sites as a business, without it being considered offer fraud. Being successful at this "business" would require you to already be planning on cancelling every offer you sign up for. This is not a business.

furthermore, why would you want it to be considered a business, then you'd have to pay self employment taxes as well as income tax.

[quote377bcd8559="CollidgeGraduit"][quote377bcd8559="stueybaby17"]When you enter into doing freebie sites it could technially be considedered a business.[/quote377bcd8559]

I don't see how you can look at doing freebie sites as a business, without it being considered offer fraud. Being successful at this "business" would require you to already be planning on cancelling every offer you sign up for. This is not a business.[/quote377bcd8559]

Yes, but I'm considering the part of me paying other people as the business.

[quote74cf567c79="doylnea"]furthermore, why would you want it to be considered a business, then you'd have to pay self employment taxes as well as income tax.[/quote74cf567c79]

I didn't actually file yet, but my taxes would be cheaper even with paying the self employment tax than if I just claimed my freebies as other income.

[quote0868e61bd6="stueybaby17"][quote0868e61bd6="doylnea"]furthermore, why would you want it to be considered a business, then you'd have to pay self employment taxes as well as income tax.[/quote0868e61bd6]

I didn't actually file yet, but my taxes would be cheaper even with paying the self employment tax than if I just claimed my freebies as other income.[/quote0868e61bd6]

I can virtually assure you that you've gotten a calculation wrong somewhere if that's the case.

[quote380d53ce39="doylnea"][quote380d53ce39="stueybaby17"][quote380d53ce39="doylnea"]furthermore, why would you want it to be considered a business, then you'd have to pay self employment taxes as well as income tax.[/quote380d53ce39]

I didn't actually file yet, but my taxes would be cheaper even with paying the self employment tax than if I just claimed my freebies as other income.[/quote380d53ce39]

I can virtually assure you that you've gotten a calculation wrong somewhere if that's the case.[/quote380d53ce39]

The H&R Block site did all the calculations, but maybe I filled something in wrong. I'll have to go back and look at it.

I'm new, so, hello all. I try to do all my "homework" before doing anything. And taxes popped into my head when trying to calculate everything out (I'm a CPA major, go figure). What I don't get, I guess, is why would it be offer fraud if you planned on doing this as your sole income?

Example A freebie site pays you $75 for 1 referral. You pay $25 to get that referral. You gross $50. Where is the offer fraud?

But what stumps me is....you have to pay taxes on the $75, not the $50. I'm not that far into my college career but when you add that up, assuming that you are putting back 33% to pay your taxes with, you net $25. Am I missing something here? Or is there a way to itemize your cost of paying referrals as some type of business expense?

Assuming my math is right, there is a profit that is not the same $25 you start with...

Starting capital = +$25
Cost of Referral = -$25
Total capital = $0

Gain = +$75
Taxes = -$25
Total gains = +$50

If the people being paid to become a referral are claiming that as income, then you should be able to claim that as a cost or accounts payable. Only makes sense to me. Has anyone ever asked an LLC company if the referral business is considerable as a business, or does anyone do this as their sole income as an LLC? After all, when the life insurance guy knocks on my door and after he goes through his presentation what comes next? "I'll give you X amount of dollars if you write down 4 people that would be interested as well."

Isn't that the same thing as paying someone to be your referral? How do they do it because I'm sure that it's not eaten away at profits to pay for your leads. There has to be someway to itemize that as an expense.

[quotea755b5800b="BumpNsubz"]I'm new, so, hello all. I try to do all my "homework" before doing anything. And taxes popped into my head when trying to calculate everything out (I'm a CPA major, go figure). What I don't get, I guess, is why would it be offer fraud if you planned on doing this as your sole income?

Example A freebie site pays you $75 for 1 referral. You pay $25 to get that referral. You gross $50. Where is the offer fraud? [/quotea755b5800b]
Because in order to generate enough income to support yourself, you'd have to be completing every offer on every site. You're only supposed to complete offers you have a legitimate interest in, and you're expected to keep or pay full price for at least some offers. If you're doing it for maximum income, then you're almost certainly completing offers with the intent to cancel. Also, after awhile, you'd likely be tempted or forced to repeat offers to maintain the revenue stream. Hence, offer fraud. Even if you went into the brokering business, that usually results in a high incidence of offer fraud through bad referrals, which as a broker you are responsible for.

[quotea755b5800b]But what stumps me is....you have to pay taxes on the $75, not the $50. I'm not that far into my college career but when you add that up, assuming that you are putting back 33% to pay your taxes with, you net $25. Am I missing something here? Or is there a way to itemize your cost of paying referrals as some type of business expense? [/quotea755b5800b]
Since you're a CPA major I'm sure you can figure it out, but as we've noted, if you intend to deduct the cost of finding refs, then you're going to have to file as a business. Which means self-employment tax. There goes a huge chunk of your profits right there.

[quotea755b5800b]If the people being paid to become a referral are claiming that as income, then you should be able to claim that as a cost or accounts payable. [/quotea755b5800b]
LOL, I think you'd be hard pressed to find a single person claiming their ref payments as income, but yes, legally they should be.

dmorris68,

You stated that one would have to complete every offer on every site. This is what I don't understand. If you are green for life and paying for referrals, when are you completing offers? I'm not trying to be smart with you, I really don't understand. Is there no such thing as green for life then?

And the reason I brought up LLC's instead of self-employment tax, is because of the whole chunk of tax that would be eaten. It would be much cheaper. Think outside the box. Your computer, rent or mortgage, ink, printer, Internet service, electric bill, PayPal fees, etc,... would all be considered a business expense under an LLC and therefore would become a tax write off.

So is this legit or not? Because I'm already sensing some shady stuff by the answers. You said I'd be hard pressed to find a single person claiming their ref payments. Do you think that PayPal doesn't report your activity? I'm not telling anyone how to live there life, but once you get audited by the IRS, you tend to look at every angle. And don't think for a minute that just because you get away with not claiming income made on PayPal for a few years that you are in the clear. I was audited for a $100 sale I made on E-Bay that was 3 years old. By the time they graced me with "my oversight", the interest and fees turned into over $2,000.

If it is considered a "bribe" to pay your referrals, then I understand why it isn't legit. That would be like paying for drugs off the street with a credit card. But everything you guys are doing is logged whether you are being paid for referrals or paying for referrals because of the involvement of either PayPal or your Credit Card in order to complete the transactions.

And the fact that it is written in the Freebie Sites Terms & Conditions that you can't "walk" your referral through the process seems a little odd to me. If the sites were legit, they would welcome the help as it brings them more business. It sounds to me like they want your referral to mess up so they don't have to pay you your prize but still get paid for generating a lead to their big named companies. Does that not seem shady to anyone else? Anytime you conduct business with the intention of purposely setting someone up to fail for your financial gain is by definition, fraud. Think about it.

To each their own, but I'm not going to do anything without making sure that if I sneeze wrong the government isn't going to try to lock me up for it. I'm going to dig around for some information about the legalities behind starting this as a business. I've not once made a trade, completed an offer, or been paid for an offer, so this would be the perfect opportunity to find out some things. Give me a few days and if anyone is interested in what I find out, PM me and I'll tell you what I know. If there is a way to really do this and make it into a self-supporting legal business, I'll find it.

Dave

[quote11f38feb4f="BumpNsubz"]And the fact that it is written in the Freebie Sites Terms & Conditions that you can't "walk" your referral through the process seems a little odd to me. If the sites were legit, they would welcome the help as it brings them more business. It sounds to me like they want your referral to mess up so they don't have to pay you your prize but still get paid for generating a lead to their big named companies. Does that not seem shady to anyone else? Anytime you conduct business with the intention of purposely setting someone up to fail for your financial gain is by definition, fraud. Think about it.[/quote11f38feb4f]

Walking referrals through can include telling them what offers to do, instead of them doing something they are legitimately interested in.

To answer your other question, freebie sites only make money if they have people who don't complete the site. Not to say that I've seen any legitimate sites that purposely don't credit -- they just plan on John Doe signing up and doing his offer, and only getting a couple of friends to do the same. This business model wasn't designed with trading in mind, as that leads to a lot higher amount of site completions, so the sites have to pay out more.

So yes, they designed the business based on the assumption that a certain percentage of their users would fail. Is that fraud? No. It's looking at the market, assessing the behavior of the users, and then setting your prizes and payouts in such a way that your company makes money.

We're not getting the whole story from BumpNsubz, because I'd really doubt that the IRS would make the effort to collect on a $100 oversight. It would cost them far more than that to even contact you to collect.

Yeah, that does sound fishy.

Bump, there's nothing "shady" about doing freebies. I don't think you fully comprehend how it works. Nobody is going to make even a modest income by selling themselves as refs, unless they have some big ref broker operation going, which DOES tend to get shady. You run out of offers VERY quickly, or you recruit bogus refs, which leads to fraud and your inevitable disqualification from all sites.

Some people try to make a living on freebie site [i1256f6615f]payouts.[/i1256f6615f] You complete an offer, earn enough quality refs (through whatever method works for you), and cash out. Then you cannot do that site again (in most cases), therefore you must repeat the process of completing another unique offer, earning refs, and cashing out. Or, if you go the DIY route, you do several offers at each site yourself. Either way, before long, you start running out of unique offers. The offers do change over time, but not quickly enough or in sufficient numbers to support freebies as any sort of reliable income. Which is why we always discourage people from even trying it that way. Just do it as a hobby.

My skepticism at people claiming their referral income was not intended to be an endorsement of the practice. In fact I'm usually the person branded as the "tax police" around here for ranting at folks about trying to get out of taxes, or giving/asking for tax advice here. I was merely pointing out the reality that if people go to such lengths as they do to avoid reporting the gifts they receive, they damn sure aren't going to be expected to add up and report the ref payments they get that aren't documented anywhere.

And no, PayPal doesn't report to the IRS outside of standard banking practices that require reporting of transactions of certain sizes (like $10K and up), so I'm highly skeptical that your $100 eBay transaction was reported by anyone, other than perhaps a disgruntled buyer. I'm likewise hesitant to think they pursued you over $100, because it just doesn't make sense from an enforcement standpoint. I and close family members have worked in the banking industry, and there isn't much love lost nor cooperation between banks and IRS outside of what federal laws require.

CollidgeGraduit,

I see your view on walking someone through the process...that makes total sense. I wasn't looking that detailed into it. I wouldn't want someone telling me what to buy either.

On the other hand, if Freebie sites don't make any money when you complete your obligations and are paid a prize, then that's their accounting problem. You shouldn't tailor your site around only making a profit when someone DOESN'T complete it, or in other words, only making a profit from the failure of your customer. Does that mean to say, Blockbuster doesn't make a profit when you return your movie late and have to pay a fee. No, they DO make a profit off someone else failing. BUT!!!

1. They don't encourage you to fail by hiding the due date from you or saying you can't ask them if you forget when it is.

2. They make a profit regardless of if they NEVER have a customer fail by having a late fee, or not.

If Freebie sites only make a profit from their 'customers' failing....that's not a business I would want to be conducting with. For one thing, they aren't looking out for my best interest so I can expect no help on their part. And for another thing, if they only make a profit by not paying out prizes, then that would make me think they are going to try to find any loop-hole to make sure they make money.

I don't think that's much of an issue anyway. I'm pretty sure they make a profit regardless as well. Albeit a smaller one if they have to pay out. But wouldn't it make more sense to design the business based on the assumption that your customers win? If company A makes $100 if you fail and only $10 if you don't because the prize is staggeringly too high, then yes they will probably try any tactic to make it as hard as possible to fail. This will make for some hefty profit taking for a short while, but you'll crash and burn quicker than you started because of lack of business. The harder it is to make completions, the harder it will be to move traffic to your site. But if company B makes only $50 when you fail and $50 if you don't because they took the time to figure out the numbers so that everyone wins (the big named companies offering the free trials, the freebie sites generating leads to the big named companies, and the members of the freebie sites for bringing them leads and getting paid for it with a prize), that would make for a completely different view on an honest sole income for anyone involved. You might not make as much on your prize or would need more referrals, but it would be an easier business on your part because your referrals won't have to jump through hoops trying to green for you.

Little piles of money make big piles of money. If you can make just $10 for 2 min of your time with little to no effort vs. make $100 for who knows how long it would take and a lot more effort, which would you choose? I'd repeat the $10 method. Hell, I'd do it for $5 or even $2 dollars a pop if I knew it was 100% legit. I don't see that being the case for getting paid to be a referral, but more for the other side of making a profit by paying for your referrals needed for the prize.

Check out the affiliate links on the companies websites that have the offers. Add it up amongst how many it takes to get your credit. The Freebie sites are making money regardless. No question there. So it's not an issue of they designed it to ONLY make money when you fail, it's more of a greed thing to encourage failure for the most profit.

I can already see this is the wrong side to be on. I'm going to check into what it takes to run a Freebie site itself and take that route. But without all the loop-holes and hopes of failure just to make a profit.

Dave

Bump, you're arguing with people that are IN the freebie business. We all know how it works from the inside, to one degree or another. Where the profit points are, etc. Some have more profit opportunities than others, but when we say breakage (customer failure to complete requirements) is the primary source of revenue, we mean it. If everybody who signed up completed their offers properly, and all were paid out, the freebie industry would go bankrupt.

This has all been discussed countless times on this forum, but you caught me in the right mood so I'll illustrate with a very simplistic example (numbers are pulled out of the air, but the concept is the same). You complete, say, Blockbuster Online. The site gets paid, say, $60-$80 for the completed referral (it varies by site, as they and their affiliate networks & publishers negotiate their own rates -- a small operation will get less, while a large operation with high volume will get a better deal). Now say you get 5 refs to do the same. That's 6 offers completed on your account, for a total of maybe $360 in revenue for the site (assuming $60 per). Most sites payout in the order of $40-$50 per ref, so they ship you a $300 gift. That leaves $60 profit, which is fair as long as none of your 5 refs complete. However if they do, the revenue generated by their offer completion was spent on your gift, rather than going towards their own, so each ref's payout upon completion takes a chunk out of the site's profit. After paying out on just a couple of your refs, they are probably in the red.

Now if you never get all 5 refs -- say you get 3 and give up -- then they've been paid for 4 offer completions at $240 and they didn't have to ship you ANYTHING. That's where their profit lies. It's called breakage.

Sure, not all sites operate on the exact business model, and the smart ones negotiate side deals by selling your e-mail and demographic info on the side (as typically allowed within their TOS), so there is some side revenue to pad their margins with. But it wouldn't be enough to sustain a business without the significant factor of breakage.

Since I obviously need to clarify something here goes....

All I know is, the only money I made that year (besides a grant check left over after each semister) was from selling stuff on E-Bay. When I filed my taxes, the income I claimed was off by $100. After it sat there for 3 years collecting interest and occurring fees, it ended up costing me over two-grand to pay it off. I'm almost always behind on my child support so I never get a tax refund. So I didn't recognize that I owed the IRS anything until last year when I SHOULD have received a tax return because I was up to date. They didn't contact me, I contacted them as to why I didn't get a refund....that's when they told me that there was a discrepancy with the income I claimed that year vs. what they had on the books. It could very well be because child support monitors my bank statements (I transfer everything from PayPal to my bank account) and that's why I was audited so harshly. I really don't know. But what I do know is it had to come from my earnings on PayPal and $100 cost me a bundle. (I just went to PayPal's site and read where they don't report. I admit I never asked the IRS if the discrepancy was from PayPal or my bank statements. So I did jump the gun a little, my fault. But it's still something to think about and double check so you don't have the same problems I did.)

And with Bush in office, nothing surprises me anymore when it comes to taxes. Don't forget to file your 1099 when they send you your $800 or $1600 rebate this year. Oh, did you think you weren't going to have to pay taxes on it? Think again. THAT is a set-up for failure in order to make a profit.

Dave

Uhh, no -- tax rebate checks are refunds of taxes already paid, usually due to a retroactive adjustment in tax bracket. As such, they are not taxed as income. I've received them before (this isn't the first time it's happened, you know) and I've never had to pay income tax on them. That's kinda the whole point of a tax rebate check.

Now some states may try to tax you on it, but I doubt it.

No offense intended, but are you a first year CPA student? Because you seem to have some distorted or naive views of business economics, marketing, and tax laws.

dmorris68,

I appreciate you giving me an example. But doesn't it take more than just 1 offer from Blockbuster to go green in most cases? Every site I've checked out requires you to gain a full credit. This could mean several offers before meeting that requirement. Just an observation. The profit from multiple offers probably add up to your example, you were just making it simple for me to understand.

I was never trying to argue with anyone and honestly haven't even looked at this discussion as one. I obviously don't get it so I'm just going to let this one go. Good luck to everyone.

Dave

Most sites are not partial credit sites, and I never do those. The partial credit sites are usually the ones that pay higher payouts, and thus must make more per green to fund it.

Don't be discouraged, I'm not trying to send you away. It's just that we've been in this field for years now, we know how it works, and questions like yours have been asked and answered a million times already. ;)

Hang out, learn the ropes, and then test the waters yourself. Just don't make the mistake of thinking this is a job you can earn a living at.

None taken dmorris, as a matter of fact I am a first year CPA student but that's not where my info came from regarding the Rebate.

When I filed my taxes yesterday, the accountant (I'll leave company names out of this one) said that yesterday morning Bush signed the rebate bill, let me stress that, rebate not refund. I do know the difference. But he also told me that your rebate check will have a 1099 mailed with it. So I asked him what the 1099 was for and that's when I was told this.

Because the rebate bill was put into effect after the tax season had started, you will be required to pay tax on the amount given. Not only that but Bush did something else at the last minute too. The tax guy didn't tell me and I didn't ask for the min amount you had to make in order to receive it. But I didn't make enough last year to get it. Apparently, Bush just wants the middle class to receive it now instead of just leaving it as "If you made over $72,000 you are not eligible." I wish I had asked so I could post to you guys the min you had to make last year to even get it, but I didn't foresee this discussion either. I wasn't getting it, it pissed me off, so I didn't care at that point TO ask.

He could have been completely blowing smoke up my ass or not so tuned into the facts. But I didn't question it considered he works at a well-named tax company and was licensed to do what he does. I don't take that as being naive, but until now, I didn't think I needed to double check it either. SO...I'm off to find out if it is stated somewhere and I'll link the website to the info if that is ok with the forums to do so.

Dave

The income requirement is true -- I don't recall the justification, but the idea is that the middle to upper class pay the majority of taxes, therefore they should get the majority of rebate. There's also an upper cap on income too, so it's not like the wealthiest get it either. It's a solidly middle-class initiative.

The 1099 info you got seems shady to me. I'm not going to say your accountant is incompetent, because I'm not an accountant. I just know that the whole concept of a tax rebate, based on past experience, was that it was non-taxable rebate. It seems silly to tax you on a rebate of taxes paid due to a tax structure adjustment. That would be double taxation by the same entity (federal government). I know double taxation can happen, but I'm skeptical in this case. I'd have to do more research to confirm.

I haven't read much past Dmo's response talking about Blockbuster...but, you can safely use $30 as an offer value these days (this was not always the case), unless a site is pushing serious volume. The reason you see the small freebie sites requiring more than one offer completion is to drive up their per user profit.

Most site owner's break even on completed accounts, and make their money on co-regs, or incomplete accounts (the breakage Dmo referred to).

Well, I do need to talk to my accountant. Apparently Bush signed it but it's still in congress. So it hasn't passed yet. Regarding the 1099, we aren't the only ones discussing this. I too thought that seemed ridiculous to tax a rebate, but that's the buzz going around that Bush added to the bill yesterday. I guess my tax guy was giving me a heads up that it COULD be a possibility if Congress also agrees to it. Hmm...

I called the IRS and they won't say yes or no to the 1099 requirement since it hasn't actually passed yet. They did tell me the min though...

$3,000 in income meets the $300 min.

I feel 2" tall, and apologize to the entire forum community for spewing heresay. I didn't think I needed to double check my tax guy, but I'm now going to be in the market for a new one.

Dave

PS In some cases it is required to add your state tax refund to the following years federal income. This may be where I was getting confused at thinking you always had to) This is on page 20 of the following 1040 IRS pdf

http//www.irs.gov/pub/irs-pdf/i1040.pdf

Some states will tax federal refunds because you can claim federal taxes paid as a state deduction. So if I claim all federal taxes withheld as a deduction on my state income tax this year, then get a refund of some federal taxes paid, I have to report that next year to the state in order to offset the deduction benefit from last year. If you choose not to deduct your federal tax liability, then you typically don't have to claim any refund as income. That has always been the case, at least for the 25 years or so I've been paying taxes. The federal tax rebate is an entirely different animal, and I am almost certain it won't be taxable by the IRS (although as I said, some states may require you to claim it), but it's too soon for me to bet my life on it.

The $3000 minimum to qualify for the rebate sounds fair then, because at less than $3000 income you won't pay taxes anyway -- and why should someone who doesn't pay taxes get a tax rebate? So really, the only taxpayers being excluded from the rebate are those who make too much money, therefore the argument that it's only for the wealthy (or even middle class) fails.

[b1657ec3f31]EDIT[/b1657ec3f31] Although I'm not finding anything official as of yet, I see forums where people are asking the question about the rebate being taxable. Throughout all the NO answers there is inevitably at least one who claims YES, but have no facts to back it up. The general consenses is a resounding NO, and several who said so were professional accountants or tax preparers with 30+ years of experience.

Another thing that may lead to some confusion on the subject states will sometimes issue tax rebates to their taxpayers. State rebates ARE usually taxed by the federal government. The last federal tax rebate we got in 2001 was definitely NOT taxed though.

Has anyone received their Brandarama 1099s? It's the only 1099 I'm waiting on and their deadline has passed. Please post if you have or haven't received your Brandarama 1099. Thanks.

Well, I got my 1099 from I-Deal for my 24" Dell. I was surprised since it seems I've had it for so long and I've been out of the "freebie" business for a while. I'll be finishing up my taxes on TurboTax online this weekend D

Congress has passed the stimulus bill that includes the rebates (to be mailed out in May, according to the Treasury Dept.), and has sent the bill to the President to be signed. The White House says he'll sign it next week.

I wanted to post about some clarification that I just read on the tax implications of the rebate. According to CNN, the rebate isn't taxable per se, however it is now considered an advance against next year's refunds.

http//www.cnn.com/2008/POLITICS/02/08/economic.stimulus/index.html

[quoted43bd31748="CNN"]The checks are an advance on next year's refunds, and most, if not all of the money, will be deducted from taxpayers' refunds in 12 months' time. [/quoted43bd31748]

I've been keeping up with all the major wire stories on this, and that's the first time that has been mentioned, to my knowledge. Maybe some insiders or CPA/tax pro's knew it beforehand or assumed it, which may explain much of the confusion. So it isn't like it's going to be a 1099'ed addition to your 2008 income (and thus "taxable"), it's just going to be deducted from your next refund. However I'm fairly certain that 2001's tax rebate was not deducted in 2002, but I'll have to check my returns from back then to confirm.

This now begs the question what about taxpayers who don't get refunds, or get less than the rebate amount??? Do they have to pay it back? When it says "most, if not all," that seems to leave the door open that not ALL of it will be repayable. But there's precious little information about it right now.

Suffice to say it isn't taxable income, so I was right, but the end result could be worse in some sense. If it were taxable, you'd lose a percentage of it next tax year. Now it sounds like folks might lost it all next year. OTOH I've not finished my taxes this year, and by the time I add everything up, we may not qualify for it anyway.

Okay, another CNN article to clarify further.

http//money.cnn.com/2008/02/08/pf/taxes/rebates_what_you_need_to_know/index.htm?cnn=yes

[quotecae157d11b="CNN"]Do I have to pay the rebate back?

No. And here's why.

Your rebate is a one-time tax cut - an advance on a credit you'll receive on your 2008 return.

It's based on your 2007 income initially. If it turns out that your 2008 income and number of children would have qualified you for a larger rebate than the one you received, you'll be sent the difference. If it turns out your 2008 income was lower than in 2007 and you should have gotten a lower rebate, you get to keep the difference.

"If you were supposed to receive a larger payment than you did, you will get the extra money," said Treasury spokesman Andrew DeSouza. "If you received more than what you should have gotten, you will not be penalized." [/quotecae157d11b]

So it is in fact an advance on next year's tax refund, but if you don't have enough of a refund to cover it, that's ok. Those with larger refunds will have the rebate amount deducted.

I was just coming here to post the same thing. That's actually good news for those in the freebie scene who also have full time jobs. For someone like me, who has taxes taken out at work, but then earns income outside of work I never get a refund at tax time. This $600 is just a straight up bonus for me.

Kick ass! Same here... I have to pay roughly $400 when I file (according to a 1040 calculator I found online). It'll be even more next year. So, this rebate is particularly welcome. )

Not for me, I usually get about $660 back every year.

Would it make sense If I had like 3,000 dollars taken out in taxes on one w2 that I would only get like $150 back from that....? I was messing around with turbo tax and thats all it said I would get back...

It could make sense. Remember, getting a refund is not ideal, since that means you just loaned the government your money for 9-12 months at 0% interest.

[quote52e4f2ca99="doylnea"]It could make sense. Remember, getting a refund is not ideal, since that means you just loaned the government your money for 9-12 months at 0% interest.[/quote52e4f2ca99]

Maybe i'm not understanding then... I thought you get most of your federal taxes back?

[quote1d2679fbdd="mistertomlinson"][quote1d2679fbdd="EatChex89"]Anyone know where I can file state tax for free? I don't feel like paying $40 to file with TaxCut..[/quote1d2679fbdd]

--warez link removed--

Secondly, I have been expecting 1099-MISCs from I Deal, Brandarama and 2DollarDeal. It seems strange that I haven't received ANY of them yet. I don't know what to do (I know by law, I should file regardless of whether or not they report it to the IRS).[/quote1d2679fbdd]


Anyone use this and make sure the program isn't cropping your info and sending it somewhere? I'm not using it either way...and maybe I'm just paranoid...but it seems like a relatively simple way to steal identities.

[quote60fb221297="manOFice"][quote60fb221297="doylnea"]It could make sense. Remember, getting a refund is not ideal, since that means you just loaned the government your money for 9-12 months at 0% interest.[/quote60fb221297]

Maybe i'm not understanding then... I thought you get most of your federal taxes back?[/quote60fb221297]

I don't think you would get much back. Anything you get back is basically because of deductions, then you have freebie income which you didn't pay taxes on, so makes since for you to get very little back or even owe more.

[quotee895293386="Gigante"][quotee895293386="manOFice"][quotee895293386="doylnea"]It could make sense. Remember, getting a refund is not ideal, since that means you just loaned the government your money for 9-12 months at 0% interest.[/quotee895293386]

Maybe i'm not understanding then... I thought you get most of your federal taxes back?[/quotee895293386]

I don't think you would get much back. Anything you get back is basically because of deductions, then you have freebie income which you didn't pay taxes on, so makes since for you to get very little back or even owe more.[/quotee895293386]

Thanks for the info, that figure was just from one w2... my 1099's make me owe a lot....

The only way you get "all" or "most" of your federal taxes back is if you make so little income that none of your income is taxed. Or you have so many deductions that you negate the income. If everybody just got "all" or "most" of their federal taxes back, there wouldn't be much point in taxes. )

It also depends on how much withholdings you have taken from your paycheck. Some people take the standard exemptions, some intentionally pay extra, some pay as little as possible then settle up at tax time.

Ideally, the government wants you to pay just enough so that you neither owe nor get back any significant amount. So if you're single or filing separately with no children and have no itemized deductions or special credits (like EIC), and your W4 contains the standard 1 person exemption, you should be pretty close. But when you add in other income from 1099's, spouse income, children, mortgage deductions, etc., the government has no way to accurately determine what brings you to a zero balance come tax time -- so for most people in all but the simplest tax situations, there will always be some refund or payment due.

As doylnea said, many folks consider a refund libadli because you're giving the gov't an interest-free loan. Personally, I like to pad my withholdings to guarantee a refund, because I'm a lousy saver. I look forward to the small windfall at tax time to pay off debt, take a trip, upgrade a PC, etc., something that I would probably not have been as successful saving for.

i got $265 back.

how stupid is it that turbo tax charges 35 per additional states that i gotta file... grrr

Hi members,

Could you please verify this please ?
Last year I made some cash over $4000 from some great sites,
just wonder if I'll have to pay tax for the whole sum of money
which in fact I received only half from my referrals.
If I can claim referral-paid expense in order to reduce the tax,
how can I ?
Thanks in advance.

[quote893dbc6099="adamo"]Hi members,

Could you please verify this please ?
Last year I made some cash over $4000 from some great sites,
just wonder if I'll have to pay tax for the whole sum of money
which in fact I received only half from my referrals.
If I can claim referral-paid expense in order to reduce the tax,
how can I ?
Thanks in advance.[/quote893dbc6099]

This is a good question because on our W2 form, it would say for example "$12,000" but really we only made half of it.

[quotec2bce05323="puppeteer"]

This is a good question because on our W2 form, it would say for example "$12,000" but really we only made half of it.[/quotec2bce05323]

Thanks. Let's wait for responses from many experienced members here.

lisighli This issue has been covered time and time again, in this very thread, even.

Once again, discussing taxes in general is one thing, but do not ask for tax advice here. Nobody can tell you how you should file your taxes. It's a legal matter, and every person's situation is different.

Just know that if you're going to attempt to deduct referral costs from your income, then at that point you're considered self-employed. You'll have to file Schedule C and pay the whole 15% SS tax yourself. You'll be forced to itemize, which if you don't already, and you don't have enough itemizations to offset the standard deduction, you'll just be hurting yourself even more. And you better document very well your referral costs in case you get audited.

Personally, unless you make something like $20K a year or more in freebies and pay out at least half that in refs, I just don't consider it worth the hassle IMO to treat it like a business. You won't really be saving much if anything, and in fact you could find yourself paying more.

Again, don't take my advice or anybody else's from this forum when it comes to how to file your taxes. But if it were me, I'd just claim the $4K as regular income and move on.

[quote8e71fb7361="dmorris68"]
Again, don't take my advice or anybody else's from this forum when it comes to how to file your taxes. But if it were me, I'd just claim the $4K as regular income and move on.[/quote8e71fb7361]

OK, I see.
Thanks David for your kind response.

I'm sending my taxes out today.

HOw should I send them?

Big yellow flat envelope? Write the address on the envelope? Delivery confirmation? Certified Mail Return Receipt Requested? please help

I e-filed mine, it was the easiest things to do. I said bye bye to my 4k, and cried myself to sleep.

[quote952d863bc3="TryinToGetPaid"]I e-filed mine, it was the easiest things to do. I said bye bye to my 4k, and cried myself to sleep.[/quote952d863bc3]

yeah, I owe so I didn't want to spend the money on e-filing... I figure it would be a little bit cheaper mailing it.

I do have to sign something and send it back -- so let me know how you send it when you do.

[quotea19183d216="TryinToGetPaid"]I do have to sign something and send it back -- so let me know how you send it when you do.[/quotea19183d216]

I think i'm going to send them Certified Mail Return Receipt Requested. Just because i'm sending them quite a bit of money and don't want to be dicked over if lost.

[quote0add8c3fe6="manOFice"][quote0add8c3fe6="TryinToGetPaid"]I do have to sign something and send it back -- so let me know how you send it when you do.[/quote0add8c3fe6]

I think i'm going to send them Certified Mail Return Receipt Requested. Just because i'm sending them quite a bit of money and don't want to be dicked over if lost.[/quote0add8c3fe6]

Just swing by the post office and ask what they suggest. I mean, they are sending out a thousand of these a day, they should know.

They're real helpful to begin with.

Sent out my taxes yesterday.. government scammed me out of almost $1,100 ;)

[quote3d97e66b39="bruman"]Sent out my taxes yesterday.. government scammed me out of almost $1,100 ;)[/quote3d97e66b39]

Go ahead, post that here http//forum.freeipodguide.com/viewforum.php?f=30

No, seriously, it will be funny D

just got my state of department checks.... I filed my tax 2months ago...

Does anyone know how long it takes the government to cash your checks after they receive it? I'm just wondering, i believe my parents said they do it fairly quickly?

[quote3fbfcd0d16="manOFice"]Does anyone know how long it takes the government to cash your checks after they receive it? I'm just wondering, i believe my parents said they do it fairly quickly?[/quote3fbfcd0d16]
Yeah they cash it as soon as they get their hands on it pretty much so I'd be sure to have the sufficient amount in your checking account right after you mail it.

after having to pay 336 to the IRS and 136 to the state for 2006 (472 total), i changed my withholding to zero.

this year i only owe 168 to the IRS and 42 to the state, 210 total

too bad the dubya didn't just build the 600/1200 credit into this year's return, i wouldn't have to write a check at all.

-dan

[quotee068468679="hehehhehe"][quotee068468679="manOFice"]Does anyone know how long it takes the government to cash your checks after they receive it? I'm just wondering, i believe my parents said they do it fairly quickly?[/quotee068468679]
Yeah they cash it as soon as they get their hands on it pretty much so I'd be sure to have the sufficient amount in your checking account right after you mail it.[/quotee068468679]

yeah it's there, just wanted to make sure they cash it before its not, lol