1099 Misc. Tax Form ~ Do You Know What Box Your Earnings Should Really Go In?

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For everyone that is a member of a site that requires submitting a 1099 MISC Tax For do you know what box that site should put your earnings in? If you are not familiar with this tax form you can go here: http://www.irs.gov/pub/irs-pdf/f1099msc.pdf to take a look at it. All Gpt sites require this form as well as a couple others, they prepare the 1099 MISC and send it to you. Of course you should be aware that according to the IRS they should be putting your earnings into box #3 NOT box #7. Box #3 is "other income" and box #7 is "non-employee compensation", if they have box #7 selected you will be subjected to self-employment taxes. Why does this matter? Well lets say you earn $1,000.00 within a year on a Gpt Site, they put your earnings into box #7, you will loose between $150 - $160 of your earnings because of "self-employment taxes" (Thats 15%!). With box #3 there will be less taxes taken out since your earnings are considered as gifts/rewards according to the IRS, and you aren't considered as self-employed! I came across a website that explained how Treasure Trooper, InstantProfitz, MonsterPaysCash and HoorayMoney put your earnings into box #7. (MonsterPaysCash is very willing to change to box #3).TreasureTrooper and InstantProfitz refuse to change it to box #3 .......... Why is that? There isn't even a good answer to that question, but what they claim - is that it actually hurts them more if they put it on box 3, it makes filing easier but they pay more on it. They pay in their tax bracket for that income (which is never less than 7.5 %) if they put it in box 7 they can DECREASE their taxable income AND pay lower tax on these earnings instead of 15% and higher. What the IRS said about their claim is it doesn't affect them either way but it does hurt the members! If you receive a 1099 Misc Tax Form and your earnings are in box #7, you should contact the site and ask them to correct the form. If they do not send a form within a reasonable amount of time or the refuse to send you a corrected 1099 MISC Form contact the IRS at: 1-800-829-1040. An IRS agent will then submit a complaint, Form 4598, to the organization that has failed to reissue to reissue you a corrected form. A copy of the complaint will be sent to you along with Form 4598. So the bottom line is pay attention to tax forms and make sure that they are filled out properly, I don't think anyone wants to pay more taxes than they have to, I know I don't! Good Luck To you all! :)