Just one question. I know that if my annual income from tapas is $600 or more, I will get a tax form from here as I need it to file the tax. But if I get less than $600, do I still need to file the tax?
Apr '23
Apr '24
I think you should ask your accountant. Each place has different laws regarding taxes. But theoretically speaking and to the best of my knowledge (at least where I'm from) you do need to file said taxes.
not an accountant, but where im from (US, Texas) you are legally required to file it. If they don't send you a 1099, I think it goes under miscellaneous income.
A lot of people don't report it because if the employer don't file the 1099, it's not on record. Not sure how it works with Tapas though.
If a website pays you any money, ie the money hits your bank account, you will get a 1099 form or whatever your country's tax form is for independent contractors. If you "earned" money on Tapas, but haven't hit the $25 mark to cash out, you don't need to worry about tax stuff.
not a lawyer or accountant, this is not legal advice
Generally speaking, if it doesn't get reported to the IRS, you don't need to bother to report it yourself. They don't even know about it. If you didn't get a 1099 (and you won't get one unless you hit the $600 minimum), then the feds don't know about, and the state likely doesn't either.
I wouldn't be concerned unless you're making money from multiple 1099 sources that would combined exceed $600 - THEN you might have more of a need to report it, as you wouldn't want to get caught hiding that.
I'm no authority on these things, and know very little about taxes myself, but I make a little income (under $600) on resale sites and didn't have to report it. Similar to what you're describing, both of the resale sites I use provide a tax form if you make over $600. But as @Katzalcoatl suggests, it might be best to ask a tax preparer or accountant if you are working with one.
OTOH... IF when you were paid, anyone took out taxes from your payment, filing your taxes may enable you to get that refunded. Also, if your income is low enough & a few other things, you may qualify for cash benefits by filing.
A lot of tax advice is dependent on where you live, marital status, etc. If you're in the US, look up the IRS forms online & find the intimidating-looking 1040 Instructions booklet. There's a page near the beginning (pg 8 this year) explaining who has a legal obligation to file & a simple chart to help you decide.
I know the tax deadline has passed, but I figured I'd chime in with my experience since I had quite a bit of trouble with this. This is US based. Tapas does not send you a 1099, which my novel contact confirmed. I found this strange, but I'm not exactly an expert on types of employers, freelance work, and requirements in sending out 1099s. I earned over $600, so I had to report. Even if you earn less than $600, you are legally required to report all income. It's true the government would have a hard time discovering you got the money, but it could lead to consequences should it indeed be discovered you didn't report it.
Going on, my contact told me that Paypal would actually have a 1099 available for me. Unfortunately, because the requirements for self-reported income changed and caused confusion, it led to a mandated delay that meant Paypal didn't have send out the 1099s. So, there I was--technically having to follow the new guidelines while screwed out of the paperwork I needed to file my Tapas income. I had to use the Schedule C form instead, which should generally be what you use if you earn less than $600. It was incredibly confusing, but I managed to get it in. I ended up having to pay on my federal return and a local form because this was the first year I'd had any income like this and wasn't sure how to withhold what I needed.
Taxes are fun.
(Although, hopefully the new changes coming to the IRS and filing system will make things easier down the line.)
Per the USA's IRS instructions for Form 1040 (the main reporting form) for 2022 (the year for which we're filing returns in 2023), page 11, Chart C "Other Situations When You Must File", line 3:
"You had net earnings from self-employment of at least $400."
I suspect that might describe the situation for some people here. It really isn't hard to go to the IRS website for forms & download the 1040 instruction booklet. It has a few pages up front dedicated to explaining who has to file or not. If you do that for yourself, at least you'll know that you put in due diligence & the reason you decided to file or not. Do the same for your state taxes, though you'll probably find that if you didn't have to report federally, you won't have to report to the state.
closed Apr 22, '24
