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How do I handle taxes? Options
Deb-Admin
Posted: Tuesday, September 13, 2016 10:07:19 AM

Rank: Advanced Member
Groups: Administration , Member, Moderator

Joined: 2/6/2013
Posts: 67
Due to recent changes made by the IRS, Interact Media is not required to send out 1099s to any writers and we will not be sending any. It is now the responsibility of the payment processors such as PayPal to report payments to the IRS, not the entity that used the payment processor to send the payment. However, that being said, most of you will NOT be getting a 1099 from Paypal, because they will only send you a form 1099-k if you were paid more than $20,000 and had 200 transactions in a single year.
 
Before the recent IRS changes, Interact Media would have been required to send you a 1099 if we paid you more than $600 in the year. However, with these new changes, Interact Media is not required to send you a 1099 form. In fact, if we did send you a 1099 form, it's possible your income would be reported twice, once by us and once by Paypal, and you could owe more taxes!
 
Here is a good article on this subject:
 
http://blog.highbeambusiness.com/2012/01/irs-forms-form-1099-k-and-form-1099-misc-instructions-still-confusing-taxpayers/
 
Paypal FAQs on This Topic:
 
https://cms.paypal.com/us/cgi-bin/marketingweb?cmd=_render-content&content_ID=marketing_us/IRS6050W
 
If you have further questions about this topic, please contact your accountant or call the IRS.
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