1099's and the under $600 rule...
 

Ok, so if you make less than $600 with one company then you do not need to report that money to the irs. But lets say for example, that you made exactly $500 with 10 different companies which would be a total of $5,000 revenue. Under this rule is it safe to say that the person in this example does not have to report any of the $5,000 since each portion of the total was under $600 with different companies?

I think the $600 rule means that the company is not required to send you 1099 form if it's under $600, but you are still required to pay taxes on that income...

You still have to report it. They just aren't required to send out a 1099, or whatever the hell it is called in the U.S.

Well i guess i'm trouble from last year then lol. So how exactly does it work though? Just add up how much you made from each check during the year and tell the IRS the amount?

Since I didn't report any income for last year, when April 06 comes around do I report everything after Jan 1st 2005 or everything after April 15th 2005?

thank god i dont do my own taxes lol

you still report all income.. no matter if you get a 1099 or not.

go talk to an accountant

Alot of companies will still send you a 1099.. I've gotten a 1099 for $1.26 before...

you have to pay your taxes on every penny you earn. some sponsors will not send you a 1099 no matter how much you make.

Well, the only way the IRS knows you made money is when a company sends the IRS a copy of your 1099. A company does not legally need to send one if they paid you less than $600 in the year. Most companies won't send it if this is the case.

A lot of self employed people do not report this income since there is no record of it.

Not reporting it as income will get you an audit if you have some old lady who likes to report everything for some fuckin reason. In most cases, if you don't get a 1099 and you haven't moved recently or some shit that could cause it to get lost in the mail system, then the IRS didn't get one either.

Can someone explain how this would work?

:1orglaugh

why the fuck would you ask a tax questions on a board like this?

Uhh, :1orglaugh

Get a lawyer and an accountant
If you get audited, its going to hurt

Well banks report their financials also
They have to report where the money came from, where it went, ect...
If you have a bank account they will know

Until they do a random audit on you and see all these checks and wires coming into your bank account.... that were never mentioned on taxes... hmm

So no one can explain how this works?

the tax year begins jan 1st

:1orglaugh uh-oh


the IRS like to break balls

Better be safe than sorry... pay your taxes

yeah.. that's the safest thing to do.. pay your taxes. thanks for the updates here.

is paying your taxes a confidential thing as long as you're over 18?

only if you get paid by cash-in-mail.