Just a thought for this next year for you guys, in most states you can pick up a sole proprietor business license (for under $50 in most cases) - this will allow you to write off expenses incurred with doing business on the internet (such as internet fees, etc.) and n most cases really cut down on what you have to pay in taxes associated with the W-9 you get from DP each year (also works for eBay related fees.) - there is a little more to it - but well worth looking into.
FibroMom (rep: 184k) posted Feb 10, 2013
@artemis..if we make more than 600 a yeat from dealspl we automatically get a 1099 in the mail which means dealspl has already reported this income to the irs. If u dont put it on ur tax return chance are u willl get a letter from the irs about the mismatch. I use to work as a tax account couple yrs back and have encountered this happen a lot.
@branie. ..most likely u put ur 1099 income from dealspl on ur 1099 form on the tax return. All the necessary information needed shud be on the document dealspl sent to us. I have not yet started doing mine. .but will let u know for sure when I do and see something different.
Florida2Texas (rep: 13k) posted Feb 10, 2013
Im assuming your wages are listed in box 7 of the 1099-M. If so you are being paid as an independent contractor (self employed) and you need to pay social security and medicare taxes on that income. You need schedule C and schedule SE and report your wages on line 12 of your 1040.
Unfortunately the average person doesnt have enough expenses to itemize in the first place so those small expenses would end up hurting you in the long run. The are useless for your federal return. People have this misconception that because you spent $1000 on supplies you can deduct $1000 and thats simply not the case. I had over $14000 in per diem last year alone, along with $2000 in specialized clothing, about $750 in tools, plus mileage and other expenses. And still made out better using the standard deduction. The average person just does not have the expenses to make it worthwhile.
@arsiel If you don't live with your parents or if they aren't claiming you as a dependant you can file as Head Of Household and be entitled to Earned Income credit,in some cases no dependant(children) are required.The less your income the higher the amount you get.
I've bookmarked the page with qualifications here EITC Home Page--It’s easier than ever to find out if you qualify for EITC
xptrish (rep: 85.5k) posted Feb 10, 2013
If youre going to thumb me down for posting facts at least take credit for it.
Head of Household
You may be able to file as head of household if you meet all the following requirements.
You are unmarried or considered unmarried on the last day of the year. See Marital Status, earlier, and Considered Unmarried, later.
You paid more than half the cost of keeping up a home for the year.
A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the qualifying person is your dependent parent, he or she does not have to live with you. See Special rule for parent , later, under Qualifying Person.
You Must Be at Least Age 25 but Under Age 65
You must be at least age 25 but under age 65 at the end of 2012. If you are married filing a
joint return, either you or your spouse must be at least age 25 but under age 65 at the end
of 2012. It does not matter which spouse meets the age test, as long as one of the spouses
No clue what youre trying to say. What is the deal section?
Your post has no thumbs down at all. Unless youre talking about the post arsiel she can file as head of household for simply being single and not a dependent. Yes I thumbed you down on that. Didnt think it needed and explanation since it was in regards to false information.
Its awesome when people post useful information. But it needs to be true and correct useful information.
The ask and share section should NOT have any thumbs (up or down) in the response area anyway that is just my opinion. You should agree or disagree with your written words not thumbs.
Sorry to all who got thumbs down, I appreciate all thoughts and opinions on this subject and I do 100% agree with Acidbaby it is great to offer information, but it should be absolutely correct. JMO :)
branie (rep: 52.9k) posted Feb 11, 2013
@MdavidK30..You have the oddest things to say around here!! I would never put my personal information here as I have much more sense then that, some of the things you say here at DP are really kind of ridiculous and I ignore it and I think most others do as well, but when you talk about me as though I am some idiot then I will let you know how I feel. BTW.. I did not say anything else we didn't already know as MM we get 1099's and know we have to claim it, I was wondering what if other MM were having difficulties.
I don't feel I gave information that is not already public knowledge or I have already written about here during my last 6 years as a member.
Just my feelings. Peace to you MdavidK30
branie (rep: 52.9k) posted Feb 11, 2013
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