Ok, here's the deal:
1. I will receive a 1099-Misc for $3,000 from organization X.
2. Throughout the year I received 3 $95 honoraria payments from organization Y, which I am not sure whether I will receive a 1099-Misc from.
3. I received a one time $200 service compensation from oraganization Z, which I am not sure whether I will receive a 1099-Misc from.
Note: Income from organization X will be declared on Schedule C of my 1040.
Questions:
1. Do I have to report income from organization Y and Z on Schedule C if I receive 1099-Miscs, eventhough, they are both less than $600?
2. If I don't receive 1099-Miscs, do I report the income from organization Y and Z on Schedule C?
2007-01-04 08:18:59 · 7 answers · asked by bmadrid79 1 in Business & Finance ➔ Taxes ➔ United States
1. Yes, you have to report income from organization Y & Z, even though they are less than $600. Income is income, it doesn't matter if it was 6 cents or 60,000,000 dollars (although if you opt to prepare your returns rounding to the nearest dollar, 6 cents would round out to be zero).
2. If the income from organizations Y & Z was for the same work or "business" that you did for organization X, you can put it all onto the same Schedule C. If they were for different businesses, then they should be on different Schedule C's.
2007-01-04 08:24:14 · answer #1 · answered by jseah114 6 · 2⤊ 0⤋
If organization X, Y & Z are all in the same related field of work, then yes, you should accurately report ALL income earned from them whether a 1099-misc. is recieved by you or not.
Sometimes it will actually serve you better to claim all Sch. C income and keep the expenses to a minimum. (there is nothing in tax law that states you must claim all of your expenses, just that you must claim all of your income). If you qualify for EIC (earned income credit) having a positive earning amount from Sch. C will pay some of your SE tax (you'll be paying into social security for yourself).
2007-01-04 16:48:52 · answer #2 · answered by Meg 2 · 1⤊ 0⤋
If you look at a tax table, you will see that it's divided into boxes of $50 incriments.
Anything that moves you into the next lower box affects your taxes.
Yes, you need to report it, even if you don't receive a 1099.
(All income from all sources are taxable until you're given an "exclusion". That's the actual definition of taxable income from the revenue code. If you find $20 on the sidewalk, it's taxable. If you rake in $1500 from your prostitution ring, it's taxable. If you have a machine in your basement that prints c-notes, they're taxable as soon as they dry, and I believe they're deductible when the FBI confiscates them and locks you in a small cell.)
2007-01-04 16:27:43 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Yes to both questions. Whether a 1099 is received does not affect reportable income - it is all taxable - but the IRS will not know about it.
2007-01-04 16:22:36 · answer #4 · answered by spicertax 5 · 2⤊ 0⤋
Income is income whether you receive and 1099 or not.
Actually, reporting income that the IRS doesn't know about probably lowers your audit risk in the long run.
2007-01-04 16:35:18 · answer #5 · answered by Wayne Z 7 · 0⤊ 0⤋
With any income over $400 or more you have to report this as income? go to www.irs.gov and type in 1099 misc.
2007-01-04 16:27:36 · answer #6 · answered by perleo 3 · 0⤊ 0⤋
If you use TurboTax, it will help you decide.
2007-01-04 16:21:37 · answer #7 · answered by Anonymous · 0⤊ 1⤋