Tax information i got from amazon!

Discussion in 'General' started by trueakitalover, Dec 6, 2012.

  1. trueakitalover

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    Important Tax Information about your Mechanical Turk Worker Account

    Dear Amazon Mechanical Turk Worker,

    The IRS published new regulations under section 6050W. As a result of this change, Amazon Payments, as the third party payment network provider for Mechanical Turk transactions, is responsible for reporting transactions that meet the IRS thresholds via Form 1099-K, this reporting includes Worker earnings. As a result of this change, Mechanical Turk will no longer provide the Mechanical Turk tax report to Requesters.

    No action is required on your part.

    Information on the Amazon Payments policy related to 1099Ks is available here. The Form 1099-K reporting instructions and the IRS website provide more information about these regulations.

    Sincerely,

    The Amazon Mechanical Turk Team

    P.S. Please note this information does not constitute tax, legal, or other professional advice. To find out how this new legislation will affect your business, or if you have other questions, please contact your tax, legal, or other professional adviser.

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  2. chrispennfl

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    Got this as well and am kind of confused, the 1099k form makes it seem as if you don't make 20k you won't even get a 1099k from amazon, also states that you don't get individual 1099s from requesters only amazon sends it out. So I won't receive anything from amazon if I make under 20k for them is what I've gathered is that right?
     
  3. Khalinov

    Khalinov User

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    I’d imagine everybody whom Amazon has tax information for got the email.
     
  4. Blazed

    Blazed User

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    Yup. Just got one at 3 am. I'll read through it later.
     
  5. chrispennfl

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    Any thoughts on this?
     
  6. hobomatic

    hobomatic Member

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    From the IRS 6050W FAQ:

    So... even if you aren't directly furnished a 1099, the settlement entity (Amazon) is still required to send you a 'statement' of what they reported.
     
    #6 hobomatic, Dec 6, 2012
    Last edited by a moderator: Dec 6, 2012
  7. chrispennfl

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    I'm not a tax professional hobo it looks as if you don't meet the 20k threshold you won't receive anything via amazon 20k/200 or more transactions, this is what I'm reading is it true?
     
  8. ds_36

    ds_36 User

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    I didn't get that email. Although now my payments account says "We are processing the tax identity information submitted by you. Your account will have restricted functionality during this time." That's definitely been verified.
     
  9. atkins

    atkins User

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    I would think most of us would be exempt because of the $20K, but not the 200 transactions.

    This is from
    http://www.irs.gov/pub/irs-utl/irdm_section_6050w_faqs_7_23_11.pdf

    What is the de minimis standard for reporting? Does it apply to
    payment card transactions?
    The de minimis standard exempts the reporting of transactions settled by a third party settlement
    organization of a payee in a third party payment network if the aggregate payments to the payee
    do not exceed $20,000 or if the aggregate number of transactions does not exceed 200. This
    applies only to the payments settled by third-party settlement organizations. The de minimis
    standard does not apply to payment card transactions.
     
  10. hobomatic

    hobomatic Member

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    I think amazon payments (indenpendent of mturk) is still required to provide you a 1099 for earnings over 600 dollar. I can't imagine that the IRS is simply not interested in de minimis from AMT. It is definitely worth more research.
     
  11. chrispennfl

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    I think it's more of a threshold of 20k/200 transactions they will send a 1099k, I can't see them sending out forms for people making over 600 dollars per year, that's probably a 100,000 or so of users.
     
  12. hobomatic

    hobomatic Member

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    Lol, no no no, I think you misunderstood or I misspoke. I am not saying they will be sending the 1099's to the IRS (or even you), I am saying anything over 600 dollars per year from a single entity like ebay, paypal, or amazon is considered income, and they have to be ready to report it to you or the IRS upon request.

    They do not have to initiate the reporting themselves for these amounts. The information however does have to be available.
     
    #12 hobomatic, Dec 6, 2012
    Last edited by a moderator: Dec 6, 2012
  13. chrispennfl

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    Ahh taxes are so very confusing!
     
  14. Jak

    Jak User

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    I've never done taxes before so all of this just went straight over my head. I really wish they would make it streamlined so people actually knew what to do.
     
  15. pwt

    pwt User

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    I didn't get the email and it looks like it might have had a link in it. Can someone who got it please forward a copy to me? pwtnv@mediapundit.net

    Thanks.

    Another thought..I don't like the sound of having activity limited during a tax info review. I'm heading to Amazon Payments right now to withdraw what I have to make sure I've got at least that. I suggest others do the same.
     
    #15 pwt, Dec 6, 2012
    Last edited by a moderator: Dec 6, 2012
  16. j0sh

    j0sh User

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    Same. What the heck is Amazon doing? This is the second time my SSN info has gone from Verified to "You cannot change your tax identification information right now. The information you entered previously is still under review."
     
  17. Khalinov

    Khalinov User

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    The links:

    Information on the Amazon Payments policy related to 1099Ks is available here: https://payments.amazon.com/sdui/sd...s/User-Agreement-Policies/Federal-Regulations


    The Form 1099-K reporting instructions: http://www.irs.gov/uac/Form-1099-K,-Merchant-Card-and-Third-Party-Network-Payments

    Don’t know how we got from 1099-K reporting to limited accounts, but FWIW I just made my regular Thursday withdrawl and my Amazon Payments account is just fine and with no restrictions.
     
    #17 Khalinov, Dec 6, 2012
    Last edited by a moderator: Dec 6, 2012
  18. pieper

    pieper User

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    I do a lot of my eBay business through PayPal. I have yet to worry about that threshold of $20K or 200 transactions (although that may have changed this past year). My understanding is that you DO NOT have to report anything under $600 from ONE entity. That said, it is our responsibility to inquire about a 1099 from someone we do regular business with.
     
  19. pwt

    pwt User

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    I thought you had to report everything. Hmm..
     
  20. Khalinov

    Khalinov User

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    You are supposed to report all your earned income. The 98% have just as much responsibility to pay their taxes as the 2%. ;)
     

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