Report Survey Income on Your Taxes
Many people take online surveys but most of those people do not know the rules on paying taxes on the income they receive from taking surveys. I am here today to help straighten you out so that you will not get in trouble with the IRS. =)
Get Out Your Records
The first thing we are going to need to do is pull out your records. If you are asking what records, you are in trouble and should read my survey tips but for now I will tell you what you should have at the minimum. Copies of checks that were received from survey companies and PayPal receipts from surveys. Now, you will need to add up all the income from all the survey companies. This will be your taxable income. Yes, you have to pay taxes on all income regardless of the amount. This amount should go under your “other income”.
Did You Recieve a W99?If you received a W99 from a survey company, you are considered to be a self employed contractor. You can fill out a Schedule C which allows you to deduct expenses granted there are not very many expenses associated with online survey taking but here are a few ideas: your internet access, office furniture, your computer, and rent for your office if it used solely for the purposes of your “business”. You are still required to pay self employment tax but the more expenses on the Schedule C, the less tax you will have to pay.
If you have not received a W99, I strongly suggest that you contact the survey companies and get one.
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