I have a business as an independant consultant. I have recieved income from several businesses. I have heard that if they paid you less than $600 during that year that you do not have to claim that income. I did recieve a W2 from one business where I was an employee, but only made $552.00.
2007-02-03 10:49:48 · 6 answers · asked by justme11 1 in Business & Finance ➔ Taxes ➔ United States
The $600 threshold only applies to business having to issue a form 1099 to independent contractors for labor. Taxpayers are legally obligated to report all forms of income even if it is illegal (selling drugs). They issued a W-2 because they want to be able to substantiate the wages they paid you for their own deduction. If you choose not to report the income it will surely be red flagged by the IRS since you know they received information (the W-2) that you earned it. Plus it's not that much tax anyways.
2007-02-03 11:00:17 · answer #1 · answered by The Answer Man 2 · 0⤊ 0⤋
You are legally required to report the income. Whether you do or not is up to you.
The $600 limit you have heard of is regarding when they must send you a 1099 form, not if you have to report the income.
2007-02-03 10:54:39 · answer #2 · answered by Brian G 6 · 0⤊ 0⤋
You have heard wrong. You are legally required to claim all of the income. The $600 limit is for THEM to be required to send YOU a 1099 for it - below $600, they may send one but don't have to.
2007-02-03 11:05:36 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
Yes, you must claim everything.
2007-02-03 11:02:15 · answer #4 · answered by Wayne Z 7 · 0⤊ 0⤋
yes
2007-02-03 10:57:56 · answer #5 · answered by psuricheman 2 · 1⤊ 0⤋
i would report it,just to be safe..
2007-02-03 10:58:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋