Hello, I read the message on YPN's publishing center stating that if you did not earn $600+ in 2006, you would not be receiving a 1099 tax form to report the income? If you didn't earn over $600, then what do you need to do? Thanks.
If you said you read the message then why in the hell are you asking this question? the message CLEARLY states what you do NOT have to do. jesus people....
It's still income and needs to be reported on page 1 of Form 1040. You just won't have a Form 1099 to attach, similar to attaching your W-2. But income must still be reported (honor system) without the 1099. EDIT: But read the Form 1040 instructions. Income below certain limits may not require a tax return.
If you are an US resident you need to fill form 1040/1040EZ. There you have to add this as an additional income. You should do this because, it is never advisable to mess up with Uncle Sam.
You do need to report income. The exception is if your total income is below a certain threshhold that is stated in the Form 1040 instructions. In that case, you may not have to file at all. If you had other income in 2006 and the total income was over a certain amount (see the 1040 instructions), then you must file a tax return and include the income spoken about in the opening post. Again, go to the source and read the Form 1040 instructions to see if you need to file. If you do, then you will have to claim this income.
The income threshhold varies with your filing status (single, married filing jointly, etc.). And unless you know of a specific exemption in the tax code for this precise kind of income, it is reportable.
Okay, thank you for the help. I know that I wouldn't need a 1099 form to report the income, but I just wanted to see if it needed to be reported at all.
an0n, if you're an american citizen, you report income... thats how america rolls any income made, needs to be reported... period hippies...
If you make any money at all you must report it as income. No matter if under 600 dollars. It is not worth audit if they find out. If you get audited you are more likely to be audited again in the following years. Even if you do work at family members home and they do work at yours you are suppose to declare what the work is worth and pay taxes on it. Basicaly you make any money or trade service or product you are suppose to declare and pay taxes on it.
don't have to claim this? I got audited this year for about $800 adsense revenue that I did not report about 3 years ago. I had to pay taxes on it and all the penalties for the past 3 years. I wouldn't play with uncle sam...
If I had dome my taxes properly it would have added almost $300 to my tax return but ended costing me a lot more because of penalties and 3 years interest.