Spaceship_small
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I made less than $600 as a sub-contractor: No 1099 was generated. MUST I report it?

I understand the IRS will track and find 1099 statements that are not reported on your return. But do they also get reports for $599 amounts that DO NOT generate a 1099 statement?

So,can I not report that amount this year, cause it won't be reported by my employer this year?

Advise please. And hurry!

O my captain asked in Taxes about 1 year ago | Report

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  • Min-wage_small
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    asteria

    I'm not a tax lawyer or accountant, so I'm not qualified to give you advice on this matter, just sharing my experience.

    You as a taxpayer are responsible for keeping track of your income and reporting it, even if the company that paid you didn't create a 1099 form. The law is pretty clear about that.

    However -

    I've done some bookkeeping for small nonprofits, and if non-employees were paid less than $600 a year we never created 1099s for them or reported it to the IRS. The amount is determined by the IRS, and employers are not required to report payments to the IRS if they don't exceed $600 total per calendar year. I was told by our CPA that the responsibility is on the taxpayer to report the income if it's less than that.

    It's likely the IRS would never find out if you "forgot" to report that amount, and you could not report the income and not pay whatever the taxes would be. (You should keep in mind that this would be tax evasion, even on a small scale.) I've been paid "off the books" for quite a few small odd jobs in my life, didn't report the income, and haven't gotten audited - yet. I've mostly been around poverty line income and don't itemize deductions.

    If you "forget" to report it, you might want to consider making a donation to any group that provides services to those in need, just to make up for that tiny amount of your tax payment that would have trickled down to the social service providers through the feds.

    asteria answered in Taxes about 1 year ago | Report
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  • N684325377_6966_small
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    Persons who have earned a minimum of $400 in self-employment earnings must file Federal taxes. This includes contracting income from outside sources.

    (from IRS website)

    Adam Michelson answered in Taxes about 1 year ago | Report
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