If you made less than $500 last year online, do you need to tax it?

United States
February 10, 2009 2:34pm CST
I'd rather not count it unless it was something much higher like $5000 or $10,000 in a single year from online. But less than $500? I published 5 articles on Associated Content last year, each about $2-$3 each on average and I wrote 50 reviews for this other site which earned me around a total of $400 just about. That was all in 2008. Does it need to be taxed or should I just forget about it?
3 responses
@sirnose (2440)
• United States
10 Feb 09
No,you don't have to report it if its under $500,but, if President Obama issue them stimulus checks you might want to add that as income to meet the amount of income earned to be able to get the check if so you will have to fill-out a 1099 for that what you have earned here on the internet...hopes this helps...
• United States
11 Feb 09
Couldn't I just put it down as gambling money or something?
• United States
10 Feb 09
The short answer is, yes, you are supposed to claim ALL income. However, as a business, if they paid you less then $599, they are not required to report the income to the IRS on an official form with your social security number. You are, however, supposed to claim it as income. You can claim income as a sole proprietorship and then reduce the income by costs (most notably, what you pay for internet access during the year as it is vital to your business). But claiming that will also subject you to social security tax as well. My rule of thumb in the past has been - if I don't receive a form (1099, W2, etc.), I don't claim the income. If I'm audited and they require it, I'll pay whatever is due. But so far I've never had an issue.
@avonrep1 (1862)
• United States
10 Feb 09
I have to say, report it. Because the deductions you will have from Internet and things like that will get you more money back on your taxes. It gave my family an extra $200 dollars in our taxes for 2008. Claim it, the money is better in your pocket than Uncle sams. Happy Mylotting.