MicrostockGroup
Microstock Photography Forum - General => General Stock Discussion => Topic started by: melastmohican on August 05, 2008, 00:43
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It looks they assumed I will make $600 this year :-)
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I don't understand why they want a W-9 form. All they actually need is your SS# so that they can issue a Form 1099 reflecting your income for the year. There is no requirement of $600 before a Form 1099 can be issued. Banks will issue Form 1099 reflecting interest of $10.
Our responsibility to report all income earned is in accordance with IRC Sec 61A unless there is an allowable deduction. The requirement to file a return is based on Income. People who have part-time employment and earn less than $600 don't have to file, but should file Form 1040 EZ in order to get any taxes witheld returned/refunded. Microstock income for many contributors is in addition to some other form of employment and would be subject to the Fed Income tax Law if they are an American citizen .
Citizens of other countries if subject to U.S. Fed tax laws will be able to reduce the subject tax by the amount of Foreign Tax paid as a Foreign Tax Credit.
This is of course just a general guideline.
Hope you do better than $600! ;D
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Someone or something must be on the case to agencies to acquire W9 or W-8BEN forms. I had an agency that I have worked with for 10+ years ask me this week to send a W-8BEN form or they would have to withhold taxes.
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An accountant friend of mine has suggested to me that the IRS has been pickier with companies and withholding of late.
The IRS as many of us know is part of the US government, but does not share anything other than money with the rest of the government. It seems to me that dealing withthe W9 or W-8BEN forms are worth the time to get your maney and not have the US make interest on the money. I think filing a tax form to get your money back is more difficult than the paperwork to prevent the withholding as you will need to get a tax ID number to file anyway.
Scott
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I earn lots more than $600 a year with them and have never been asked.
It is my understanding they do not worry about it unless you are earning $600 a month.
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If every site gives me 1099 form it would eliminate my guessing on how should I file my taxes :-) Still have no clue how to deal with non-US sites.
It is stated in instruction of W-9 form: http://www.irs.gov/pub/irs-pdf/fw9.pdf
"Payments over $600 required to be reported and direct sales over $5,000"
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All you have to do to report income from sites outside the U.S. is to keep track of money received via PAY PAL and include the amounts as part of the Gross Receipts on your Schd. - C Form 1040.
Back-up witholding comes into play if a person refuses to provide the either the Social Security Number or the Employer ID Number.