another tax question

Ok with less than 2 weeks left in the 07 year I am 2 offers away from completing a laptop offer for brandarama, now I could complete the offers and be confirmed on Friday. But I really don't don't to be taxed on this item this year. (already going to be taxed for the $1000 visa and 37" plasma)

Now my question is when would I be taxed? when my offers complete? when my offers are confirmed to be shipped? etc? Should I wait til Jan 1st to complete the offers or complete them before and just mail them Jan 1st?

You're taxed the same year you RECEIVE it.

For example, I have a $500 VISA Gift Card confirmed to ship in July of 2006. This is going to ship in January of 2007.

This will be taxed as a 2007 gift (even though I completed it in mid-2006)

How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??

[quotec1622beb84="orangejuice"]How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??[/quotec1622beb84]

No, but I already sent them a W9 for other gifts over $600 and they will add everything together at the end of the year (even the $500 that I didn't submit a w9 for)

[quotef134094040="bruman"][quotef134094040="orangejuice"]How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??[/quotef134094040]

No, but I already sent them a W9 for other gifts over $600 and they will add everything together at the end of the year (even the $500 that I didn't submit a w9 for)[/quotef134094040]

Sounds like YFD/Netblue.

[quotea88b9d9688="freeipodplayer"][quotea88b9d9688="bruman"][quotea88b9d9688="orangejuice"]How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??[/quotea88b9d9688]

No, but I already sent them a W9 for other gifts over $600 and they will add everything together at the end of the year (even the $500 that I didn't submit a w9 for)[/quotea88b9d9688]

Sounds like YFD/Netblue.[/quotea88b9d9688]

Huh? The network is irrelevant.. it's like this on all networks.

[quotee9ed812e13="bruman"][quotee9ed812e13="freeipodplayer"][quotee9ed812e13="bruman"][quotee9ed812e13="orangejuice"]How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??[/quotee9ed812e13]

No, but I already sent them a W9 for other gifts over $600 and they will add everything together at the end of the year (even the $500 that I didn't submit a w9 for)[/quotee9ed812e13]

Sounds like YFD/Netblue.[/quotee9ed812e13]

Huh? The network is irrelevant.. it's like this on all networks.[/quotee9ed812e13]
How would they able to tax you if you never sent in a w9 or any other type of tax form? Don't they need your name plus a SS # ?

Are you Brandarama will do that? If so, that sucks balls..it really does. lol. Can anyone verify this? I've only started doing Brandarama sites in the 2007 tax period so I dont know.

[quotecb1717c708="dubbin87"][quotecb1717c708="bruman"][quotecb1717c708="freeipodplayer"][quotecb1717c708="bruman"][quotecb1717c708="orangejuice"]How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??[/quotecb1717c708]

No, but I already sent them a W9 for other gifts over $600 and they will add everything together at the end of the year (even the $500 that I didn't submit a w9 for)[/quotecb1717c708]

Sounds like YFD/Netblue.[/quotecb1717c708]

Huh? The network is irrelevant.. it's like this on all networks.[/quotecb1717c708]
How would they able to tax you if you never sent in a w9 or any other type of tax form? Don't they need your name plus a SS # ?[/quotecb1717c708]

They do have your SSN and other info on the $600+ gift you get from them.

[quote2014d46c45="bruman"][quote2014d46c45="dubbin87"][quote2014d46c45="bruman"][quote2014d46c45="freeipodplayer"][quote2014d46c45="bruman"][quote2014d46c45="orangejuice"]How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??[/quote2014d46c45]

No, but I already sent them a W9 for other gifts over $600 and they will add everything together at the end of the year (even the $500 that I didn't submit a w9 for)[/quote2014d46c45]

Sounds like YFD/Netblue.[/quote2014d46c45]

Huh? The network is irrelevant.. it's like this on all networks.[/quote2014d46c45]
How would they able to tax you if you never sent in a w9 or any other type of tax form? Don't they need your name plus a SS # ?[/quote2014d46c45]

They do have your SSN and other info on the $600+ gift you get from them.[/quote2014d46c45]true, but I still don't see that happening. I mean if you were to win $500 from lotto scratch tickets say 3-4 times a year that wouldn't get reported, same thing with gambling winnings.

[quotedae3b63548="bruman"][quotedae3b63548="dubbin87"][quotedae3b63548="bruman"][quotedae3b63548="freeipodplayer"][quotedae3b63548="bruman"][quotedae3b63548="orangejuice"]How about you wont be taxed on that 500 dollar gift card. They dont make you fill out a W-9 on that do they??[/quotedae3b63548]

No, but I already sent them a W9 for other gifts over $600 and they will add everything together at the end of the year (even the $500 that I didn't submit a w9 for)[/quotedae3b63548]

Sounds like YFD/Netblue.[/quotedae3b63548]

Huh? The network is irrelevant.. it's like this on all networks.[/quotedae3b63548]
How would they able to tax you if you never sent in a w9 or any other type of tax form? Don't they need your name plus a SS # ?[/quotedae3b63548]

They do have your SSN and other info on the $600+ gift you get from them.[/quotedae3b63548]

No he won't get taxed for the sub 600 stuff. FACT. on YFD he would, not Brandarama.

Just to remind folks of two important points

1. Don't advise people "they won't be taxed." Big mistake, it's called "tax fraud." Legally, EVERYTHING is taxable, whether it's $10, $100, or $1000. Some people think because it isn't $600 or that a W9 isn't required or submitted, that reporting the gift isn't required. Not so. Providing illegal tax advice could potentially put yourself, and even the forum, at risk -- not to mention acting on said advice would be pretty stupid. So don't do it.

2. As far as liwhenli you should report it as income, it's got less to do with when you RECEIVE it as it does when THEY report it. If they order and pay for it this year, then they will almost certainly report it on THEIR taxes and issue you a 1099-MISC for this year. Meaning you are taxed for it on this year's taxes, regardless of whether you actually receive it this year. If they issue a 1099 for 2007 and you don't claim it on your 2007 taxes, then your return will show a discrepancy when the IRS processes it. This could lead to any number of results, from delaying any refunds, to audit triggers, to even penalties and interest.

[b5539f8439f]I'll say it again for the millionth time do not ask for, nor provide, legal tax advice on this or any forum. Seek a tax professional if you have any questions about your own taxes. And whatever you do, think long and hard about taking tax advice from people on a public forum, particularly those who are encouraging you to commit tax fraud.[/b5539f8439f]

[quote833b185161="dmorris68"]

2. As far as liwhenli you should report it as income, it's got less to do with when you RECEIVE it as it does when THEY report it. If they order and pay for it this year, then they will almost certainly report it on THEIR taxes and issue you a 1099-MISC for this year. Meaning you are taxed for it on this year's taxes, regardless of whether you actually receive it this year. If they issue a 1099 for 2007 and you don't claim it on your 2007 taxes, then your return will show a discrepancy when the IRS processes it. This could lead to any number of results, from delaying any refunds, to audit triggers, to even penalties and interest.

[b833b185161] do not ask for.[/b833b185161][/quote833b185161]

thank you, that sounds like the most logical awnser yet.

as for the bolded part I kept, How else are we going to know without asking others who have gone down the road? Unless Turbo Tax (for me anyways) has done a DIY I doubt the box is gonna give me a reply. lol

[quotecfdbf8c98b="dubbin87"]as for the bolded part I kept, How else are we going to know without asking others who have gone down the road? Unless Turbo Tax (for me anyways) has done a DIY I doubt the box is gonna give me a reply. lol[/quotecfdbf8c98b]
Simple this isn't the place to ask for tax advice. There isn't anything about freebies that are unique when it comes to taxes. Freebie gifts/income is taxable income just like any other taxable income -- nothing special about it and it isn't handled any different.

It's fine to just discuss taxes in general terms, but when you ask [icfdbf8c98b]what should I..., how should I..., etc.[/icfdbf8c98b], then the line is crossed. Especially when people start telling you incorrect or illegal things. To avoid any possibility of people taking or giving bogus tax advice, we try to curb it as much as possible.

[quotefeac640cd3="dmorris68"][quotefeac640cd3="dubbin87"]as for the bolded part I kept, How else are we going to know without asking others who have gone down the road? Unless Turbo Tax (for me anyways) has done a DIY I doubt the box is gonna give me a reply. lol[/quotefeac640cd3]
Simple this isn't the place to ask for tax advice. There isn't anything about freebies that are unique when it comes to taxes. Freebie gifts/income is taxable income just like any other taxable income -- nothing special about it and it isn't handled any different.

It's fine to just discuss taxes in general terms, but when you ask [ifeac640cd3]what should I..., how should I..., etc.[/ifeac640cd3], then the line is crossed. Especially when people start telling you incorrect or illegal things. To avoid any possibility of people taking or giving bogus tax advice, we try to curb it as much as possible.[/quotefeac640cd3]
I see your point but, my original question was asking when the company submits thier tax information. and that bit of info (atleast I would think) would not be know by a tax pro only by BR themselves or somebody who has already been there done that. and I think asking whether or not I should hold off 2 weeks is not commiting fraud.

Direct from BR themselves

My question

"I was wondering about the tax over the $600 limit on this gift. With the end of the year near. If I were to complete this offer before Jan 1st would I get taxed for it in the 07 year? or does the tax thing not come up untill you recieve my w9 or the item is shipped? "



[ibe8171f435]Thank you for contacting us.
It will be for the year that we receive your W-9 form and process it. As it is the middle of December and you are not yet qualified for this item, you will not be confirmed until after the first of the year.
Please feel free to contact us if you have any additional questions.
Sincerely,
Anne
GiftItAmerica Member Support[/ibe8171f435]


Case closed. 8)

[quote3079cc99b0="dubbin87"]I see your point but, my original question was asking when the company submits thier tax information. and that bit of info (atleast I would think) would not be know by a tax pro only by BR themselves or somebody who has already been there done that. and I think asking whether or not I should hold off 2 weeks is not commiting fraud.[/quote3079cc99b0]
Your question was fair. However it wasn't answered entirely accurately. And then, as it frequently does, the discussion quickly turned to whether taxes are owed at all. Or rather, the implication that you don't have to pay any tax because of whatever reason (they don't have a W9, less than $600, etc.), which is incorrect and fraudulent advice.

[quote3079cc99b0="dubbin87"]Direct from BR themselves

My question

"I was wondering about the tax over the $600 limit on this gift. With the end of the year near. If I were to complete this offer before Jan 1st would I get taxed for it in the 07 year? or does the tax thing not come up untill you recieve my w9 or the item is shipped? "



[i3079cc99b0]Thank you for contacting us.
It will be for the year that we receive your W-9 form and process it. As it is the middle of December and you are not yet qualified for this item, you will not be confirmed until after the first of the year.
Please feel free to contact us if you have any additional questions.
Sincerely,
Anne
GiftItAmerica Member Support[/i3079cc99b0]


Case closed. 8)[/quote3079cc99b0]
Do as you will, but I wouldn't consider that a closed case. To be honest, their e-mail doesn't make much sense. The year you submit a W-9 is irrelevant. All a W-9 form does is legally document your name & SSN/TID so they can submit a 1099-MISC for your income. It is never sent to the IRS and is strictly for company files, and thus has no bearing on your actual tax situation. As an example, if they get your W-9 on 12/29/07, for example, but don't process your account and order your gift until 01/07/08, then I'm not sure they can legally claim their expense towards your gift for tax year 2007. The taxable year would be the date the expense is incurred (in this case, the date they pay for you gift). Of course if they're shady, they might backdate expenses to improve their tax picture this year. As far as you're concerned, then it remains that whatever year THEY claim it as an expense, will be the year YOU claim it as income. However, things might be complicated if they pay on terms like NET 30, because you could possibly receive the gift before they actually pay for it -- I'm not at all sure of the tax implications of that.

All of that is true to my knowledge, but I am not a tax professional either, and thus you should take anything I suggest with a grain of salt as well. Admin might chime in here if he cares to, seeing as he's in the freebie business. I know he's smart on the subject and does everything legal and above-board. But ultimately I'd wait until you get the 1099-MISC if the gift is >$600, or the year it was ordered and paid for if less. Any doubts beyond that, consult a tax professional.

Stupid question, but I'm assuming they send out a 1099-MISC in January to show the amount you received?

[quoteb86233f250="slambam"]Stupid question, but I'm assuming they send out a 1099-MISC in January to show the amount you received?[/quoteb86233f250]
Yes, although you might not get it in January. I believe the cutoff is supposed to be Jan 31st (or that may just be for W2's, I don't remember), but I've received them well into February before.

[quote2ff23aa5a9="dmorris68"][quote2ff23aa5a9="dubbin87"]I see your point but, my original question was asking when the company submits thier tax information. and that bit of info (atleast I would think) would not be know by a tax pro only by BR themselves or somebody who has already been there done that. and I think asking whether or not I should hold off 2 weeks is not commiting fraud.[/quote2ff23aa5a9]
Your question was fair. However it wasn't answered entirely accurately. And then, as it frequently does, the discussion quickly turned to whether taxes are owed at all. Or rather, the implication that you don't have to pay any tax because of whatever reason (they don't have a W9, less than $600, etc.), which is incorrect and fraudulent advice.

[quote2ff23aa5a9="dubbin87"]Direct from BR themselves

My question

"I was wondering about the tax over the $600 limit on this gift. With the end of the year near. If I were to complete this offer before Jan 1st would I get taxed for it in the 07 year? or does the tax thing not come up untill you recieve my w9 or the item is shipped? "



[i2ff23aa5a9]Thank you for contacting us.
It will be for the year that we receive your W-9 form and process it. As it is the middle of December and you are not yet qualified for this item, you will not be confirmed until after the first of the year.
Please feel free to contact us if you have any additional questions.
Sincerely,
Anne
GiftItAmerica Member Support[/i2ff23aa5a9]


Case closed. 8)[/quote2ff23aa5a9]
Do as you will, but I wouldn't consider that a closed case. To be honest, their e-mail doesn't make much sense. The year you submit a W-9 is irrelevant. All a W-9 form does is legally document your name & SSN/TID so they can submit a 1099-MISC for your income. It is never sent to the IRS and is strictly for company files, and thus has no bearing on your actual tax situation. As an example, if they get your W-9 on 12/29/07, for example, but don't process your account and order your gift until 01/07/08, then I'm not sure they can legally claim their expense towards your gift for tax year 2007. The taxable year would be the date the expense is incurred (in this case, the date they pay for you gift). Of course if they're shady, they might backdate expenses to improve their tax picture this year. As far as you're concerned, then it remains that whatever year THEY claim it as an expense, will be the year YOU claim it as income. However, things might be complicated if they pay on terms like NET 30, because you could possibly receive the gift before they actually pay for it -- I'm not at all sure of the tax implications of that.

All of that is true to my knowledge, but I am not a tax professional either, and thus you should take anything I suggest with a grain of salt as well. Admin might chime in here if he cares to, seeing as he's in the freebie business. I know he's smart on the subject and does everything legal and above-board. But ultimately I'd wait until you get the 1099-MISC if the gift is >$600, or the year it was ordered and paid for if less. Any doubts beyond that, consult a tax professional.[/quote2ff23aa5a9]

Thanks for the info.

I have two offers left I think I'll do one more before the year is up and one after just to be on the safe side. I just kinda hope they tax me for the other two gifts (or atleast one) for the 07 year. Or I could always do more offers next year and set the money aside if I have to pay in. lol

OK, I know you aren't all tax professionals but does anyone know if we can deduct the costs associated with earning the gifts? if not the offers themselves then at least things like postage or notary services?

[quote34351e64df="bruman"]You're taxed the same year you RECEIVE it.

For example, I have a $500 VISA Gift Card confirmed to ship in July of 2006. This is going to ship in January of 2007.

This will be taxed as a 2007 gift (even though I completed it in mid-2006)[/quote34351e64df]

I don't think this is correct. You'll be taxed when they process the w9.

[quotec8f4b83efe="heather77"]OK, I know you aren't all tax professionals but does anyone know if we can deduct the costs associated with earning the gifts? if not the offers themselves then at least things like postage or notary services?[/quotec8f4b83efe]

Sure but that assumes that your other itemized deductions don't exceed your standard deduction and that it's worth itemizing $50 in offer costs and postage...

/end non-tax professional advice.

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.

[quote36550dd55d="doylnea"][quote36550dd55d="bruman"]You're taxed the same year you RECEIVE it.

For example, I have a $500 VISA Gift Card confirmed to ship in July of 2006. This is going to ship in January of 2007.

This will be taxed as a 2007 gift (even though I completed it in mid-2006)[/quote36550dd55d]

I don't think this is correct. You'll be taxed when they process the w9.[/quote36550dd55d]

How can I be taxed on something I haven't yet received? It's when you receive it. I have other stuff confirmed to ship in november and december from brandrama... you think they will tax that as well for 07? It would go towards 2008 income, not 2007 income.

I'm wondering if doylnea intended to say "1099" instead of "W9?"

Because no, I don't believe you'd be taxed when they process the W9. However you WOULD be taxed for the year they spent the money on your gift, and I think that would be true whether you received it or not. If they ordered your TV in December, for example, and it didn't ship until January, you'd still be taxed in the prior year because THEY would have spent that money already, and thus would be deducting it as an expense and issuing you a 1099 for it.

[quotedf5277ee05="dmorris68"]I'm wondering if doylnea intended to say "1099" instead of "W9?"

Because no, I don't believe you'd be taxed when they process the W9. However you WOULD be taxed for the year they spent the money on your gift, and I think that would be true whether you received it or not. If they ordered your TV in December, for example, and it didn't ship until January, you'd still be taxed in the prior year because THEY would have spent that money already, and thus would be deducting it as an expense and issuing you a 1099 for it.[/quotedf5277ee05]

Correct. That typically doesn't happen though (them buying a gift at the end of decemer and receiving it in january) unless there are shipping problems that caused a delay.

So, if they shipped my gift Dec. 28, 2007 and didn't get it until January 2008, would it be considered 2007 income? I don't really care if I get taxed on it in 2007 or 2008, I just haven't received a 1099 yet...wondering how much longer I need to wait before I complete my taxes?

Correct me if im wrong but all 1099's must be received by the 'employee' a.k.a. 'us' by January 31st. So technically I can file my taxes now, right?

[quotee6760032cc="bennyboy5768"]Correct me if im wrong but all 1099's must be received by the 'employee' a.k.a. 'us' by January 31st. So technically I can file my taxes now, right?[/quotee6760032cc]
No, I believe Jan 31st is the date they should be completed and mailed. And even then they don't always do it by then -- I'm not sure it's so much "law" as it is "recommendation." I've gone many years throughout my life without receiving a W2 or a 1099 until well after January. The upshot is, if you file a return and then later receive a 1099/W2, you have to file an amended return. I'd wait awhile if I were you, it'd be easier in the long run unless you're absolutely certain you won't get another one.

Still waiting on Brandarama also.

Question

I recieved a 1099 from GiftRewardCenter (Nuitech) for $2000 but I didn't even complete a Nuitech site last year. Does anyone think they're sending that from 2006?

I called Brandarama yesterday, the tax documents are being sent in the next week or two.

Possibly, did you receive $2000 from them in '06 and weren't taxed on it then? Sometimes books get closed out for a fiscal or calendar year without some transactions included, so it's possible they carried it over to the next year.

[quotedbb6e69fb1="bennyboy5768"]Correct me if im wrong but all 1099's must be received by the 'employee' a.k.a. 'us' by January 31st. So technically I can file my taxes now, right?[/quotedbb6e69fb1]

Mailed by then, but its easy for a company to ask the IRS for an extension. They will most likely always grant it.

[quote5c7a790642="dmorris68"]Possibly, did you receive $2000 from them in '06 and weren't taxed on it then? Sometimes books get closed out for a fiscal or calendar year without some transactions included, so it's possible they carried it over to the next year.[/quote5c7a790642]

I thought for sure they had taxed me on all these $2K gifts I recieved in 2006. I filed and they wound up taking $400 out of my taxes (two $2K gifts).

I just need to call them.

I am an accountant and I would still recommend tax professionals for personalized advice. However, on the whole 1099 rule - 1099s are REQUIRED to be mailed by Jan 31, 2008. From http//www.irs.gov/pub/irs-pdf/f1099msc_07.pdf [quote5bd1a6dd2a]Due dates. Furnish Copy B of this form to
the recipient by January 31, 2008.[/quote5bd1a6dd2a] They should be mailed early to reach us no later than Jan 31, 2008. There is a fine of around $50 for each form that is not received in time, but I don't know how to report it.

If you have received a 1099 for something you did not receive you can leave it off of your return. You will probably have your refund delayed and you may get audited and have to explain that you did not actually receive the gift yet... in other words for the hassle this will create with delaying your refund and a possible audit just pay the tax the year you get the 1099. If you don't get the 1099 pay the tax anyway.

As far as deducting the costs associated with getting the gift I would strongly suggest against it. To do so you would need to claim it as a business income and then you could claim the business expenses against it. HOWEVER, doing so will lead to you needing to pay self employment tax of 15.3%.

FYI gift income on a 1099-MISC should be in box 3. If it is in box 7 (nonemployee compensation) then it is subject to the self employment tax and you should try to get a corrected 1099 with the figure in box 3.

Hope I've helped the general questions. Once again more detailed questions should be sent to your personal tax advisor.

so my 1099misc income is listed in box 7 should it be corrected to box 3??

BR needs to fix everyone's stupid ass 1099s. this is illegal.

yeah, what a fuckin joke