1099 with EM or other Sites

[jbdial1515]

I have seen where some sites might file a 1099 if you sale more than a certain amount such as 600 dollars.

Does anyone know if EM or Zenfolio files a 1099 and reports to IRS if you make more than a certain amount of money in a given year?

Thanks
JB

[asysin2leads]

ExpMan will send you a 1099 as they are required by law if your income meets the minimum standards.

[jbdial1515]

If you do not have a business setup how do you handle this at the end of the year? Just claim as additional income and pay taxes on the money?

[asysin2leads]

Exactly. I get 1099's all the time from when I referee football. I get individual ones ranging from $57-75. I still have to claim that as income even though the amount is so low. If they file a 1099, I wouldn't want to NOT claim it. If you are not going to file business taxes, then file it as additional income on your 1040.

[jbdial1515]

Thanks Kevin.

BTW...Do you set aside money each year for this extra income to cover the taxes at the end of the year or do you just let yourself receive less money back at the end of the year since you now have to pay some in taxes?

[GPR1]

Jumping in, I would set some aside. Don't forget, you'll not only be paying the income tax, but likely both halves of the social security as well (15+% for the SS alone). Unless you make more than the SS limit (currently about $97,000 a year), you pay both. If you're in the 15% marginal tax bracket, that's 30% of your income. Of course, you can deduct any related expenses before calculating the income.

[jbdial1515]

Greg,

What is the limit before you have to claim or is any amount filed by a 1099 have to be claimed as income?

Does anyone know if Zenfolio sends a 1099 on any amount or only after a certain amount?

Thanks