Since most of us will go beyond the 200 transactions requirements (see very bottom, below email) I thought this may be important to ask. Any idea when they send out 1099-K's and if it is via email or what? -------------------------- 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. ---------------------------------- From IRS website: 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.
From this website: http://outright.com/1099-Taxes/. ( this is for 2011 but ..) Jan 31 Deadline for ecommerce providers (e.g. PayPal, Amazon Services) to send 1099-K forms to online sellers And New 1099-K Requirements for Tax Year 2011 Online sellers, including eBay, Etsy and Amazon who have $20,000 or more in gross sales and 200 transactions or more will now receive 1099-K forms from their third-party payment networks (e.g. PayPal) showing gross sales reported to the IRS. It may sound scary, but don’t worry. There’s help. "What the heck do I do with the 1099-K form I received?"
The deadline was January 31st so if you have not gotten it by now, you're not getting it. I put my turking earnings on the miscellaneous income line and have saved the page where it shows my earnings as proof. That is probably your best bet if you haven't received anything.
right, but i'm confused about the term "payment card" what is that? previous post: What is a payment card? How is is different from the 200/20k rule?
So that payment card rules apply to credit/debt. And the 200/20k apply to Amazon putting money in my bank account? What if I get amazon gift cards or use the money for amazon.com purchases?
Not sure I understand. There arent any payment card rules mentioned. If you dont make over 20k a year turking you will not receive a 1099-k. You should still report all your income earned on Mturk.
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.
1099k's have already been sent out but most will not receive one because it is $20,000 and 200 transactions. Not just 200 transactions. You have to have both.
Maybe I should have been more clear, let me try again. None of this information about payment cards has anything to do with a 1099-K and turking. Why worry about this if youre not going to get a 1099-k? Like I said before, report all your income.