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Jim Henderson wrote:
> That's sales tax, not income tax.
That's not what I'm talking about. I'm talking about income tax.
> From a personal income tax standpoint,
> the law states that < $600 isn't taxed (at the federal level, state laws
> may differ).
Yes. But $60,000 is, even if it comes from 200 different contract jobs.
Don't you think? I mean, I'm not going to sit down and grub thru the income
tax laws *again*, since I just finished that earlier this week, but it
wouldn't make sense, would it?
> I don't know that it was the IRS that we had to talk to - seems it was
> someone here in the state of Utah offices, not the feds.
503(c) is a reference to the IRS tax laws, just like 401(k) is. I don't
doubt you talked to someone in the Utah offices also.
>> Did you take them as an individual, or a corporation, or what?
> Individual.
Well, a corporation has to report everything, even if they don't get a 1099.
As an individual, I don't see anything on 1099-MISC that says the amount
isn't taxable. It looks like it goes into Schedule C, according to the
instructions.
Now, if it's <$600, you don't get a 1099 at all, but I'm pretty sure that
doesn't *legally* let you off the hook for reporting it. It just means the
IRS isn't going to be able to catch you easily.
>> One payment of $500 to an individual will likely not get you in trouble.
>> You're supposed to report it, but there's no proof.
>
> The 1099 that the publisher submitted clearly stated that there was no
> tax liability that they reported, and did include the figures IIRC for
> the amount of royalties.
Huh. Very weird. Because that's not anywhere on the 1099. I can't imagine
they *did* send you a 1099 and you didn't have to report the income.
I do love box 13 for 2009: "Excess Golden Parachute Payments."
--
Darren New, San Diego CA, USA (PST)
There's no CD like OCD, there's no CD I knoooow!
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