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US Tax Issue

Discussion in 'Business & Tax Advice' started by TheUploader, Feb 12, 2011.

  1. TheUploader

    TheUploader Registered Member

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    For paying taxes for IM earnings when you receive a 1099, I am currently a student under the age of 24. Which allows me to still be listed as a dependent as a full-time student.

    Would I have to still report the $600+ if that is my only taxed income? I read online if you are under $5700 than you don't have to.
     
  2. teeniegenie

    teeniegenie Supreme Member

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    You need to separate the idea of having to pay taxes versus filing a tax return. You probably don't need to pay any taxes in your situation but you should always file a tax return every year regardless of whether you will pay any taxes or not.
     
  3. TheUploader

    TheUploader Registered Member

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    I got it. So I should send in the 1099 anyways? How will I know if I have to pay taxes on the money I earn?

    I have been a dependent, so I am not sure of all the rules.
     
  4. teeniegenie

    teeniegenie Supreme Member

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    You should do a 1040 and attach the 1099 with it. If your income is low enough you will be able to avoid paying any income taxes at all. The fees for a CPA to do a simple return for you will be low (less than $100). It is worth the money to have them do the return for you. I'm not sure how your parents claiming you as a dependent factors into things. It may take away your standard deduction, but you'll have to check with a CPA.

    Bottom line: always file a personal return even if you don't have any income or taxes to pay!
     
  5. BorisTipsIt

    BorisTipsIt Regular Member

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    Definitely talk with your parents because it might screw up what they are doing and get them audited. No clue what the rules are, but at some point you will earn enough not to qualify as a dependent.

    Don't send in the 1099 with your return. Not necessary. The affiliate program sponsor already sent it in.
     
  6. Jorod

    Jorod BANNED BANNED

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    If you do nothing, the worst case scenario they will take all of your earnings as profit. If you can be taxed on it, you will get a bill plus intrest on the money owed.