Do you have to claim wages earned from clinical research studies?

Question

I ocassionally participate in clinical studies (i.e. investigational medications like pain medications). To date, I have earned $350, and plan on earning $300 more. Do I need to claim that on my taxes for 2008?

Answer 1

Legally, Yes you do need to claim it.

Practially, the people paying you are not required to submit a 1099 unless the income for the year is over $600. So, as long as the $650 did not come from one study, the IRS would have a hard time figureing out that you made the money.

But, yes, you do owe taxes on that income.

Answer 2

Yes you do.