If I get paid via Paypal by a company, do I have to report it?

Q

Lifer
Jul 21, 2005
12,059
4
81
OK, I might get a job that pays me $225/month via Paypal (just small amnt while I'm in college), so from what I understand, if I keep that money in my Paypal account, I don't need to report it to IRS.

But, what if I want some in my bank account? Then what, do I have to file a 1099 or something? If so, how hard are those? I'm only 18 so I really only know how to do a W-2 or whatever they are called.
 

bctbct

Diamond Member
Dec 22, 2005
4,868
1
0
Usually if you receive more than $600 IIRC in wages you will receive a 1099 from the company, you will have to claim that as income.
 

NiteWulf

Golden Member
Jan 3, 2003
1,112
1
0
You do have to report it even if it stays in your account. I think the 1099 is the right form for you, but I'm a novice in taxes. If the 225/month is all you are making this year you don't have to file taxes anyway (of course you will want to if they're taking income tax out. You'll get a refund if this is the case)
 

Q

Lifer
Jul 21, 2005
12,059
4
81
No, $225/month isn't all I'm going to make, just for 9 months out of the year. Other 3 will be probably $2K.

I don't think the website is going to provide a 1099 for me...or do they have to? I looked online to see the form and it looks confusing and talks about weird crap about brokers and stuff?
 

mugs

Lifer
Apr 29, 2003
48,924
45
91
Originally posted by: Quintox
No, $225/month isn't all I'm going to make, just for 9 months out of the year. Other 3 will be probably $2K.

I don't think the website is going to provide a 1099 for me...or do they have to? I looked online to see the form and it looks confusing and talks about weird crap about brokers and stuff?

There are various 1099 forms, like 1099-INT and 1099-DIV. They are supposed to send you form 1099 that lists your earnings for the year. If it's a company that has employees and whatnot, they probably will. If it's just some guy running a website, he might not. You're supposed to report all of your income regardless.
 

Q

Lifer
Jul 21, 2005
12,059
4
81
OK mugs...I'm not sure if it is an individual but I don't think it's just one...there are many people that work for this site (around 70 I think) but I emailed her and asked if we are actually getting one sent.
And yes, I know I'm suppose to report all my earnings.
Also, if they do send me the form/info, is it hard to fill out/a pain in anyway if you know?
Whoa, I just thought of this: I have yet to get back my Federal tax return, is this normal? I got State a while ago. (I don't make enough for them to tax me yet wohoo)
 

Q

Lifer
Jul 21, 2005
12,059
4
81
Yeah, she send they send us a 1099. So do I need to give her my SSN? One website (a much bigger one, Alexa rank is like in the 1k's) requires a SSN but this one I don't think does.
So what do I have to do come tax time differently than the one where I would give my SSN?
 

FoBoT

No Lifer
Apr 30, 2001
63,089
12
76
fobot.com
you have to report all income regardless of how they pay you

if they drop off a crate of chickens once a month to pay you, that is income and you have to report it to the IRS or you go to FPMITAP

and it doesn't matter if the employer doesn't follow the rules and never sends you a W-2 or 1099 , you have to report any income regardless

that is how they got the mob guys, for tax violations, you have to report income from illegal sources too. you even have to report bribes you take as income, i have posted this here before

you guys amaze me sometimes, here check this out, here are some fun facts

Bribes. If you receive a bribe, include it in your income.
Found property. If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession.
Free tour. If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040).
Illegal income. Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Kickbacks. You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Sale of personal items. If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it on Schedule D (Form 1040). You cannot deduct a loss.
i really like this one, next to reporting your bribes, this is my favoriate
Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.

so all you drug dealers and burglars and thieves , be sure to report your income or the IRS will find you

http://www.irs.gov/publications/p525/ar02.html#d0e7770
http://www.irs.gov/publications/p525/index.html
 

mugs

Lifer
Apr 29, 2003
48,924
45
91
Originally posted by: Quintox
OK mugs...I'm not sure if it is an individual but I don't think it's just one...there are many people that work for this site (around 70 I think) but I emailed her and asked if we are actually getting one sent.
And yes, I know I'm suppose to report all my earnings.

Based on the topic title, it seems like you didn't know that. :confused:

Also, if they do send me the form/info, is it hard to fill out/a pain in anyway if you know?

You don't fill out the form, they do. It's like a W-2 - they send you the form listing all of your earnings.

Whoa, I just thought of this: I have yet to get back my Federal tax return, is this normal? I got State a while ago. (I don't make enough for them to tax me yet wohoo)

You don't get your tax return back. You get your tax refund back. I don't think it should take this long.

Yeah, she send they send us a 1099. So do I need to give her my SSN? One website (a much bigger one, Alexa rank is like in the 1k's) requires a SSN but this one I don't think does.
So what do I have to do come tax time differently than the one where I would give my SSN?

I'm pretty sure they need your SSN to send you a 1099...
 

Eli

Super Moderator | Elite Member
Oct 9, 1999
50,422
8
81
Originally posted by: FoBoT
you have to report all income regardless of how they pay you

if they drop off a crate of chickens once a month to pay you, that is income and you have to report it to the IRS or you go to FPMITAP

and it doesn't matter if the employer doesn't follow the rules and never sends you a W-2 or 1099 , you have to report any income regardless

that is how they got the mob guys, for tax violations, you have to report income from illegal sources too. you even have to report bribes you take as income, i have posted this here before

you guys amaze me sometimes, here check this out, here are some fun facts

Bribes. If you receive a bribe, include it in your income.
Found property. If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession.
Free tour. If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040).
Illegal income. Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Kickbacks. You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Sale of personal items. If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it on Schedule D (Form 1040). You cannot deduct a loss.
i really like this one, next to reporting your bribes, this is my favoriate
Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.

so all you drug dealers and burglars and thieves , be sure to report your income or the IRS will find you

http://www.irs.gov/publications/p525/ar02.html#d0e7770
http://www.irs.gov/publications/p525/index.html


:laugh:

Ridiculously awesome.
 

smack Down

Diamond Member
Sep 10, 2005
4,507
0
0
Originally posted by: FoBoT
you have to report all income regardless of how they pay you

if they drop off a crate of chickens once a month to pay you, that is income and you have to report it to the IRS or you go to FPMITAP

and it doesn't matter if the employer doesn't follow the rules and never sends you a W-2 or 1099 , you have to report any income regardless

that is how they got the mob guys, for tax violations, you have to report income from illegal sources too. you even have to report bribes you take as income, i have posted this here before

you guys amaze me sometimes, here check this out, here are some fun facts

Bribes. If you receive a bribe, include it in your income.
Found property. If you find and keep property that does not belong to you that has been lost or abandoned (treasure-trove), it is taxable to you at its fair market value in the first year it is your undisputed possession.
Free tour. If you received a free tour from a travel agency for organizing a group of tourists, you must include its value in your income. Report the fair market value of the tour on Form 1040, line 21, if you are not in the trade or business of organizing tours. You cannot deduct your expenses in serving as the voluntary leader of the group at the group's request. If you organize tours as a trade or business, report the tour's value on Schedule C or Schedule C-EZ (Form 1040).
Illegal income. Illegal income, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Kickbacks. You must include kickbacks, side commissions, push money, or similar payments you receive in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.
Sale of personal items. If you sold an item you owned for personal use, such as a car, refrigerator, furniture, stereo, jewelry, or silverware, your gain is taxable as a capital gain. Report it on Schedule D (Form 1040). You cannot deduct a loss.
i really like this one, next to reporting your bribes, this is my favoriate
Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless in the same year, you return it to its rightful owner.

so all you drug dealers and burglars and thieves , be sure to report your income or the IRS will find you

http://www.irs.gov/publications/p525/ar02.html#d0e7770
http://www.irs.gov/publications/p525/index.html

I'm tempted to call the IRS and ask if about the fair market value of hot goods. I needed to know if the fair market value is the value your fence will give or say the value you could get on ebay if the good isn't stolen.
 

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
I'm tempted to call the IRS and ask if about the fair market value of hot goods. I needed to know if the fair market value is the value your fence will give or say the value you could get on ebay if the good isn't stolen.
you should save this for the annual tax thread here.

My guess would be you'd use the fence's best price, since that is the commonly accepted market for stolen goods.

If you file schedule C for a self-employed business you should be able to deduct masks, lockpits, slim jims, and other work tools, plus car mileage for driving to pick up and deliver your merchandise. You may also be able to deduct for a home office, but this requires that the space only be used for planning crimes and counting loot.

If you're a junkie, you may also be able to itemize with schedule A and claim self-medication expenses.
 

Jawo

Diamond Member
Jun 15, 2005
4,125
0
0
FoBoT...your list is quite amusing....I wonder how many people actually report bribes, kickbacks, hot items, etc. But then, remember that the Feds could only take Al Capone down due to tax evasion, NOT rackateering!
 

aircooled

Lifer
Oct 10, 2000
15,965
1
0
When paypal sends me a 1099 then I'll report it. So far they haven't sent me anything.
 

Cal166

Diamond Member
May 6, 2000
5,081
8
81
Originally posted by: aircooled
When paypal sends me a 1099 then I'll report it. So far they haven't sent me anything.

QFT!

Plus do you think all the ebay sellers report their income?

How many of you report your income from FS forum?