[aclug-L] Re: Freelance Technical Support

[Jeff Vian <jvian10@xxxxxxxxxxx>]

Justin G. Mitchell wrote:

>On Mon, 28 Jul 2003, Jonathan Hall wrote:
>
>
>  
>
>>>2. Keep meticulous records of everything. (Contact info, Reciepts,
>>>Credits). Remember, once you make over $2000/yr doing this in theory you
>>>are supposed to report it on your taxes.
>>>      
>>>
>>Actually I believe that figure is $400/year.
>>    
>>

>>$600 is the limit. If you make more than that you have to report it on a
>>1099 form if I remember correctly. Not sure about the form, but I know the
>>amount is $600 for federal taxes.
>>    
>>
You are right in part.
the $600 is the limit where you would need to report amounts PAID to a 
single individual on a 1099. (This shows up on the child care form where 
it asks if you have reported it on a 1099.)  It also applies to other 
types of services as well.

for example,
You are working and have to pay a babysitter to watch a child so you can 
work.
    If you pay the babysitter a total of $590 during the tax year, no 
1099 is required.
However, if you pay $601 for the tax year, you are required to report it 
to the IRS on a 1099 so you can support your expense, and they have a 
way of checking/requireing the babysitter to report all the income received.

(my accounting minor stands in good use here) :-)
I do not have time to review the tax code to see the exact amount after 
which you must file, but unless it is a hobby (or even if it is) in 
cases where you otherwise have to file taxes, income from any source is 
required to be reported.

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