Tax question...

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   William B Jrposted 12 years ago

   I'm new to HubPages and I have thus question about taxes. The question is once I achieve greater than 600 dollars in revenue from my hubs, then how would report both the income tax and social security tax to the IRS? Thanks for your time guys!

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      Simone Smithposted 12 years agoin reply to this

      Hi William B Jr!
      We do not issue 1099 MISC forms, so the income must simply be reported as other income along with any other miscellaneous sources of income one might have.
      I hope that helps!

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         William B Jrposted 12 years agoin reply to this

         Thanks for the reply Simone! I appreciate it!

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   sleepylogposted 12 years ago

   So Paypal won't make use complete any forms either once we reach the 600 dollar mark?

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   psycheskinnerposted 12 years ago

   No, but unless you earn basically nothing you still need to declare receiving the income, as Hubpages has declared paying it to you.

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      SimeyCposted 12 years agoin reply to this

      HP can you confirm this? I thought that HP didn't have to inform the IRS of the income as it comes under the remit of Paypal now.....obviously it's still up to the individual to report any income even if they don't receive a 1099 misc!

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   psycheskinnerposted 12 years ago

   I am sure Hubpages reports what it pays and to whom, by SS#, just like any other business.  That is why they need our SS# in the first place.

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      SimeyCposted 12 years agoin reply to this

      I'm going to have to read the new law again!

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         SimeyCposted 12 years agoin reply to this

         Here's the guidelines: http://www.irs.gov/pub/irs-pdf/i1099msc.pdf
         
         and more info:
         
         http://taxmama.com/tax-quips/1099s-misc-and-k/
         
         
         From my understanding as HP don't issue 1099-misc forms then they don't send anything to the IRS...

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   psycheskinnerposted 12 years ago

   I read both links and see nothing to suggest it relieves the company of the need to report all payments made to contributors to the IRS.  The total amount they pay to sub-600 people would be massive so obviously need to be declared.  It just relieves them of the burden of providing us with the 1099 form unless we make $600 or more. I assume that, like my other publishers and freelance job, they declare who the payment was made to even when it is small.  They always have and I don't see that that has changed.  Only the need to give out 1099s has changed.

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      SimeyCposted 12 years agoin reply to this

      The point is that a company sends Part A of 1099-Misc to the IRS - if they are no longer required to produce 1099-Misc forms then they are not sending anything to the IRS. That's what I meant.
      
      Still reseaching - there's a 1096 summary form too - just trying to work out what should be on this...again 1096 only seems to summarize 1099 (and other forms) that have been produced.....
      
      BTW I'm interesting not because I'm dodging the tax on HP earnings but because I'm considering setting up a small consultancy service and higher a few contracted workers...

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   psycheskinnerposted 12 years ago

   Hmm.  Okay maybe you are right.  I agree that you need to declare it regardless, but maybe they can declare the sub-600s in an anonymous lump rather than by SS#.

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      SimeyCposted 12 years agoin reply to this

      HP have to record total revenues - and I would assume total payments made to 'contractors' - I don't believe they have to break it down by SSN, but I would imagine they keep a record by SSN just in case of IRS audit.
      
      We'll see what repsonse we get from my other forum item!

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         William B Jrposted 12 years agoin reply to this

         All I have to say is thanks for the replies. They have been helpful! What I was thinking of doing is to get in touch with my accountants who prepare my taxes for me and see what they think!

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