Anyone get 1099's from Bright Hub or Associated Content (Yahoo Network)

[There4u]

I believe I am on the border of the $600 reporting mark, so I am not sure whether they are sending me 1099's or not. Is there a way to find out because if they aren't, I can go ahead and do my taxes.

[ebookwriter1]

Originally Posted by There4u

I believe I am on the border of the $600 reporting mark, so I am not sure whether they are sending me 1099's or not. Is there a way to find out because if they aren't, I can go ahead and do my taxes.

I made over $16,000 from them and have not received a 1099. I did get one last year, though, so I'd keep an eye out for it.

[anng]

Technically, due to IRS changes, any client that pays you by Paypal shouldn't be sending a 1099MISC, so they may simply be following the new rule. I'm learning fast though that many of my clients are sending them anyway because they don't understand the new rule.

[TiffanyB]

Yahoo (Associated Content) reported in the forums they are sending 1099s. Technically they only have to be post dated by 1/31 so depending on where you live it could still be a few more days.

[ebookwriter1]

Originally Posted by anng

Technically, due to IRS changes, any client that pays you by Paypal shouldn't be sending a 1099MISC, so they may simply be following the new rule. I'm learning fast though that many of my clients are sending them anyway because they don't understand the new rule.

The new rules do not mean that your clients cannot send you 1099-MISC; it just means that they can choose not to do so. You will likely have a discrepancy between your 1099-K and 1099-MISC, but the K form is only an informational report. The IRS just wants to see that people are not trying to hide income in Paypal or other payment processing accounts.

I got my BH 1099 today, BTW.

[anng]

Originally Posted by ebookwriter1

The new rules do not mean that your clients cannot send you 1099-MISC; it just means that they can choose not to do so. You will likely have a discrepancy between your 1099-K and 1099-MISC, but the K form is only an informational report. The IRS just wants to see that people are not trying to hide income in Paypal or other payment processing accounts.

I got my BH 1099 today, BTW.

When I called for clarification and to find if I did get a 1099K how I was supposed to handle what would look like doubled income on my tax forms, I was told that anyone paying me via a third-party should NOT be sending them out. Then I asked the accountant for one of my clients and she admitted that no one is really sure and that they're all getting conflicting information.

[anonemoose]

I'll reserve the right to be wrong on this, but I've been reading the tax code for the 1099-K and the 1099-MISC and found a distinction in the language that's being overlooked in general.

The 1099-K is for merchants who are selling a product or a service. Even though we as writers are selling a service, we are, by definition, not merchants. We are still considered to be subcontractors or non-employees. Because we are subcontractors, we fall under the 1099-MISC rules. If, for some reason, the employers were to classify their writers as merchants, the 1099-K rule comes into play.

Basically if someone is a merchant who sells items and has $20k in sales as well as 200+ third party transactions (Paypal et al), they trigger the 1099-K requirement.

The tl;dr version: Writers who are classified as subcontractors do not get the 1099-K and get the 1099-MISC instead. The 1099-K and 1099-MISC are two separate and distinct items.

[AG1976]

Originally Posted by ebookwriter1

The new rules do not mean that your clients cannot send you 1099-MISC; it just means that they can choose not to do so. You will likely have a discrepancy between your 1099-K and 1099-MISC, but the K form is only an informational report. The IRS just wants to see that people are not trying to hide income in Paypal or other payment processing accounts.

I got my BH 1099 today, BTW.

Oh, I'll have to look out for mine then. I'm pretty sure I earned more than $600 before BH tanked.

[anng]

Originally Posted by anonemoose

I'll reserve the right to be wrong on this, but I've been reading the tax code for the 1099-K and the 1099-MISC and found a distinction in the language that's being overlooked in general.

The 1099-K is for merchants who are selling a product or a service. Even though we as writers are selling a service, we are, by definition, not merchants. We are still considered to be subcontractors or non-employees. Because we are subcontractors, we fall under the 1099-MISC rules. If, for some reason, the employers were to classify their writers as merchants, the 1099-K rule comes into play.

Basically if someone is a merchant who sells items and has $20k in sales as well as 200+ third party transactions (Paypal et al), they trigger the 1099-K requirement.

The tl;dr version: Writers who are classified as subcontractors do not get the 1099-K and get the 1099-MISC instead. The 1099-K and 1099-MISC are two separate and distinct items.

I may be wrong too, but I'm going with what the IRS hotline said. The 1099K is for anyone receiving $20k and 200 payments via a third-party system per year. I have three private clients, each paying me via Paypal every week. 3 times 52 brings me to 156 payments and when you add in weekly payments from places like Textbroker, that brings me to over 200 payments.

In the end, there seems to be a lot of confusion. Given that, I'm waiting to see what my accountant says once she's able to find a seminar covering this newer law and then I'll know for sure.