W-9/Tax Info Selling Online

Hey guys,

I am interested in posting some of my pictures online for sale just for a few extra bucks. I'm not planning on making a ton of money, but after signing up for Backprints they want me to fill out a W-9. Do I have to do anything differently on income tax forms after filling this out? Just don't want to do anything illegal but I was assuming for the little amount I would be making, tax stuff wouldn't be an issue.

Thanks!

HLxDrummer wrote in post #13059298
Hey guys,

I am interested in posting some of my pictures online for sale just for a few extra bucks. I'm not planning on making a ton of money, but after signing up for Backprints they want me to fill out a W-9. Do I have to do anything differently on income tax forms after filling this out? Just don't want to do anything illegal but I was assuming for the little amount I would be making, tax stuff wouldn't be an issue.

Thanks!

This is standard. Backprint is going to be sending you money. Hopefully lots. That's income to you. The IRS requires them to have your Tax ID Number (social security # or EIN) on file. The W-9 is just the form that requests the information from you. They need it because if in the course of a year they pay you over $600, they are required to send you a 1099-MISC and report your income to the IRS.

Ok cool so I don't have to do anything as of now except that form? Good to know it's legit!

your best bet is to speak with an accountant. We do not know what your current financial situation is and a professional will be able to tell you how to proceed. You may find that just a few bucks can cost you in the long run.

zagiace wrote in post #13065233
your best bet is to speak with an accountant. We do not know what your current financial situation is and a professional will be able to tell you how to proceed. You may find that just a few bucks can cost you in the long run.

This isn't about his current financial situation; he wanted to know if he had to fill out the W-9 & why. There are absolutely NO variables on the information I gave him. Backprint is required to have his tax info. period. He has to fill out the W-9 to use Backprint. period. If he chooses another site, they'll still want his tax id number. If Backprint pays him $600 or more in a tax year, they will report that information to the IRS. period. If he earns less, they won't, and he won't receive a 1099-MISC. Of course, the income will still be taxable no matter how much it is. Seeing an accountant on the bigger picture may be worth the money, but there's no need to spend the money just to ask about filling out the W-9. It's the law.

vfotog wrote in post #13065320
This isn't about his current financial situation; he wanted to know if he had to fill out the W-9 & why. There are absolutely NO variables on the information I gave him. Backprint is required to have his tax info. period. He has to fill out the W-9 to use Backprint. period. If he chooses another site, they'll still want his tax id number. If Backprint pays him $600 or more in a tax year, they will report that information to the IRS. period. If he earns less, they won't, and he won't receive a 1099-MISC. Of course, the income will still be taxable no matter how much it is. Seeing an accountant on the bigger picture may be worth the money, but there's no need to spend the money just to ask about filling out the W-9. It's the law.

um, sorry, just making a note on his comment on making a few extra bucks. oh, and... period.

I think zagiace was advising him based on these two lines; "Do I have to do anything differently on income tax forms after filling this out? " and "Ok cool so I don't have to do anything as of now except that form? Good to know it's legit!". Not specifically on the W9 issue which was also included in his post, which I agree there is nothing further needed for that.

But, yes, there many be things you "need to do differently on income tax forms after filling that out". For one, you many need to fill out state tax forms for collection of sales tax. You many need to file quarterly income tax forms depending on your income level. it may be advisable to change how you file your income tax forms. Once you start selling products your tax status changes, and you are required by law to jump through extra hoops.

Fill out the W9 yes, but before you start selling anything you are well advised to seek out an accountant or tax professional for advice. Not doing so can be very costly when the IRS, state, or local tax authorities start to add on penalties, fines, and interest, because of innocent mistakes. And no, they don't accept "But I assumed...., or I didn't know..." when it comes to settling the fines.

You are crossing the line from a individual paying taxes, to a business. Whole different set of rules. And absolutely, lots of things you need to do differently on your income tax forms!