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February 8th, 2007, 01:22 PM #1Questions about 1099s
I've recieved one from CJ, but not from any of the other networks, nor for Adsense. Is there a general threshold of commission you have to earn before they will send out a 1099? IE $500, $1000, $5000?
Basically, should I wait a little longer to do my taxes and see if I get any more 1099s? Or should I assume that I haven't crossed the threshold with the others and go ahead and manually add up and report my earnings with them?
I'd like to avoid reporting one amount, and then later getting a 1099 from them stating a different number for some reason.
February 8th, 2007, 04:13 PM #2
A 1099 is only required if you earned $600 or more for the year from the merchant / network etc.
If you don't know what you earned from each for the year, maybe contact them to ask and if it is $600 + ask when 1099's are going out. They are required to send them by the last day of January - so check it out.
Best - Alan
February 9th, 2007, 10:46 AM #3
February 9th, 2007, 03:37 PM #4
- Join Date
- January 18th, 2005
Although 1099s should be sent out by January 31 (and there is likely a financial penalty if they are late), many companies will send them late anyway, or will send one on January 31 and then send a corrected one several weeks later. (It's not unusual for me to receive a 1099 that's dated January 31, but postmarked February 20.)
Don't rely on the absence of a 1099 or W-2 as an excuse to not include income on your tax return -- you are legally required to report all income, including payments that are under-reported or unreported.
If you file a tax return now reflecting only your 1099 income, and then you must file an amended return after a merchant sends a late 1099 next month (or whenever), you'll likely trigger an "audit alarm" since the IRS will wonder what other income you failed to report.
I received a 1099 from a consulting client last week which seriously under-reported payments, and I asked the merchant to check their records and issue a corrected 1099. If they didn't do it now, they would probably do it in March or April (or perhaps many months later, since corporate tax returns can be due any time of year), when preparing and filing their tax returns. If they don't issue a corrected 1099, or if the new amount still isn't right, I'll report the difference as part of my non-1099 gross receipts anyway.
My general practice is to add up my gross receipts, deduct the totals on all 1099s and W-2s, and then report the balance as a lump sum (though I also keep a report listing the amounts that made up that total). That way, if one of my merchants is audited six months later and reports the payments to the IRS at that time, I'm not going to get hit with an audit and penalties.
February 9th, 2007, 04:34 PM #5
Thanks for the advice Mark! I definitely plan on reporting 100% of my income, but just wasn't sure how to sort it all out. Now I do!
By Grumpy in forum Commission Junction - CJReplies: 1Last Post: February 8th, 2007, 12:19 PM