Sorry, But I am Still Confused with Taxes

[nadiavkhan]

So, I need this explained simply to me. In 2017, I made $1000 in mTurk money. I have seen conflicting information about needing to submit a 1099, a 1040 Schedule C, and a 1040 Schedule SE. I am under the impression that I do NOT submit a 1099 form.

Basically, this is my tax filing plan:

• Use the H&R Block Online thing
• Enter info on form 1040 from my main job (W-2 Form) [This is easy].
• Then enter information about mTurk into the 1040 Schedule C form.

Thats It. Nothing else. At all. This is exactly what I need to do for my 2017 taxes. Correct?

 

[electrolyte]

You can read this which should help: https://www.mturkcrowd.com/threads/taxes-for-turkers-reporting-self-employment-income.127/

Amazon will not send you a 1099 unless you made over $20,000 last year.

But the short answer is that none of us here are tax professionals and you should consult someone who is.

 

[nadiavkhan]

Thank you. I am aware of the posts by clickhappier. They have very much helped me out. But I still have issues understand it all. Most of it doesn't seem to apply to me.

 

[nadiavkhan]

So I am filling out my taxes via H&R block. I am filing mTurk as Schedule C. One of the questions asks "Is my investment in this business was not at risk?" And it defines "at risk" as:

+++++++++++
Being "at risk" means you used your own money for the business. So, if the business loses money, you lose money. If you're like most business owners, you're at risk, unless you:
• Borrowed money protected against loss. This includes:
• Stop-loss arrangements
• Nonrecourse financing
• Guarantees or similar types of arrangements
• Borrowed money from a co-owner or someone related to a co-owner
++++++++++++


Does this apply to me?

 

[nadiavkhan]

I need to choose the type of income I received via mTurk. My options are:
*1099-MISC income
*1099-K income from electronic payments or debit / credit card transactions
*Other income from products or services sold

What is the correct choice?

If I choose 1099MISC or 1099K, I need to list the "Payer's Name". Would this be Amazon?

 

[electrolyte]

1. You can read this thread: https://www.mturkcrowd.com/threads/taxes-for-turkers-reporting-self-employment-income.127/

2. Beyond that, you'll need to consult a tax professional. None of us here are tax professionals.

 

[Acoolcow]

So I've had to file 2 years now. The first year I used an accountant. Second year I used freefillable forms. I filed 1040, Schedule C-EZ, and Schedule SE. Never touched 1099. I sent detailed outline of my earnings to the accountant (50$ from requester 1, 10$ from requester 2, etc.). She judged this as not requiring a 1099 even though my total earnings from MT exceeded 600$.

HOWEVER if you are feeling uncomfortable with your situation, then seek a professional. I did so for my first year, just in case. I then just modeled my 2nd year filing after the 1st year and it went smoothly.

 

[Achilles2357]

2017 is my first tax year where I'll be reporting mturk income, and I haven't filed yet, so take this as you wish, but it seems the IRS has put up a useful page:
https://www.irs.gov/businesses/small-businesses-self-employed/sharing-economy-tax-center

 

[Village2017]

Thank you for the prolific link. I literally stumbled upon it. It's a fantastic venture.
My name is Amanda Naud and I have been Turking for about a month and I really
enjoy it. See you around the forum.

 

[nadiavkhan]

So I've had to file 2 years now. The first year I used an accountant. Second year I used freefillable forms. I filed 1040, Schedule C-EZ, and Schedule SE. Never touched 1099. I sent detailed outline of my earnings to the accountant (50$ from requester 1, 10$ from requester 2, etc.). She judged this as not requiring a 1099 even though my total earnings from MT exceeded 600$.

HOWEVER if you are feeling uncomfortable with your situation, then seek a professional. I did so for my first year, just in case. I then just modeled my 2nd year filing after the 1st year and it went smoothly.

Thank you Acoolcow. That helps put me at ease a bit. Do you file using HR Block or TurboTax? I use HR Block, but its asking me if my business was "at risk to me". I am saying "no" because I didnt invest with my own money in mTurk.

Also, it asks me "what type of income did my business have"? Since the 1099 forms dont apply. This leaves me with choosing "other income from products or services sold, income from other sources, or returns&allowances." ...

 

[Cara]

Thank you Acoolcow. That helps put me at ease a bit. Do you file using HR Block or TurboTax? I use HR Block, but its asking me if my business was "at risk to me". I am saying "no" because I didnt invest with my own money in mTurk.

Also, it asks me "what type of income did my business have"? Since the 1099 forms dont apply. This leaves me with choosing "other income from products or services sold, income from other sources, or returns&allowances." ...

this is why you should probably go a tax professional.

 

[catnapped]

It's "other business income" (self employed) if you don't receive a 1099 of any kind. It's also however much you receive through Amazon payments throughout the year. No individual requester will send out a 1099 (stopped doing that years ago), and you'll only get a 1099-K from AP if you made over $20,000.

I've never seen the part about "material risk" any time I've filed. If they insist, it's clearly no as you didn't put money into the business.

 

[turkenator]

So I am filling out my taxes via H&R block. I am filing mTurk as Schedule C. One of the questions asks "Is my investment in this business was not at risk?" And it defines "at risk" as:

+++++++++++
Being "at risk" means you used your own money for the business. So, if the business loses money, you lose money. If you're like most business owners, you're at risk, unless you:
• Borrowed money protected against loss. This includes:
• Stop-loss arrangements
• Nonrecourse financing
• Guarantees or similar types of arrangements
• Borrowed money from a co-owner or someone related to a co-owner
++++++++++++


Does this apply to me?

H&R block

Don't worry, the guy at H&R Block will know this stuff.

 

[Kawigirl81]

Hi,

I don't know if this is too late to answer but you are an "at risk" business. Your risk if just low.

If you use your laptop to work on mturk and you make and rely on $50 a day. Then your laptop breaks and can not be used. You don't make that money. A business classified at not at risk would still make the $50 either by means of the lost funds being provided or by a laptop being provided. That's the easiest way I can explain what at risk is. Mturking is considered self-employment. If your laptop breaks, you are no longer employed...the IRS calls that being at risk.

Also you have to file a schedule C and you would use other general income as you are not given a 1099. Mturking isn't technically a contractor for amazon, you are a contractor for every requester, you would have a 1099 for every single requester.

You also can list expenses, I know most tax software programs will go step by step through that. DO NOT list an area of your house as a deduction unless the room is exclusively used for work. A desk in a bedroom or living room doesn't count. Using your laptop on the couch or in the kitchen doesn't count. IRS is cracking down on self-employment deductions, especially on tax returns also including EIC.

Anyone else have any tax questions, let me know.

I am new on the forum, been on MTurk for about 3 weeks, and looking for knowledge by you fine folks.

Taxes I know, mturking not so much:tearsofjoy:

 

[electrolyte]

Also you have to file a schedule C and you would use other general income as you are not given a 1099. Mturking isn't technically a contractor for amazon, you are a contractor for every requester, you would have a 1099 for every single requester.

You will receive a 1099-K from Amazon if you made over $20,000 and have more than 200 transactions. https://pay.amazon.com/us/help/201491290

 

[ASUTOSH MOHANTY]

how can I change my display name?

 

[El Pablo]

how can I change my display name?

Did you just pick a random thread to ask that in?