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Thread: Weird tax implications for 200 Amazon Payment transactions?

  1. #11
    *** Forum Supporter *** FeistyLady99's Avatar
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    Quote Originally Posted by savetheunlikely View Post
    Very interesting info, thanks!

    Internal Revenue Service (IRS) regulations require that U.S. payment processors, including Amazon Payments, file a Form 1099-K to report unadjusted annual gross sales or payment volume information for customers that meet both of the following thresholds in a calendar year:

    More than $20,000 in gross payment volume
    More than 200 transactions

    So if you're not making more than $20,000 a year on anything related to Amazon Payments (mturk, selling on Amazon), it looks like you're golden. Phew. For those talented individuals (Jim, Sniksnak), I can see the concern.
    So that sounds like it would be withdrawals out of the Payments account to bank over the $20K trigger.
    I've reached the AGE where my BRAIN has switched from "I PROBABLY SHOULDN'T DO THAT" to "WHAT THE HELL, LET'S SEE WHAT HAPPENS."

    You call them swear words, I call them sentence enhancers!

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  3. #12
    *** Forum Supporter *** FeistyLady99's Avatar
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    Quote Originally Posted by thebandkittie View Post
    Any possibility it's one OR the other? That would make more sense from a tax standpoint. EDIT: I see that it does say both thresholds must be met. That's strange because that's a lot of money to be on the honor system about with the IRS.
    Technically I think every dollar you make from anywhere is required to be reported as income. I believe those limits are only for Amazon's responsibility of sending them the 1099-K.
    I've reached the AGE where my BRAIN has switched from "I PROBABLY SHOULDN'T DO THAT" to "WHAT THE HELL, LET'S SEE WHAT HAPPENS."

    You call them swear words, I call them sentence enhancers!

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  5. #13
    Member thebandkittie's Avatar
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    Quote Originally Posted by FeistyLady99 View Post
    So that sounds like it would be withdrawals out of the Payments account to bank over the $20K trigger.
    I'm thinking into the payments account because even if we spend it all at Amazon it's still income but my intuition/logic was wrong about the 20k AND 200 transactions so take this with a big grain of salt. I'm going to read the whole payments rules thing later. I printed it out and set it aside because I'm in turk mode now.

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  7. #14
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    Quote Originally Posted by FeistyLady99 View Post
    Technically I think every dollar you make from anywhere is required to be reported as income. I believe those limits are only for Amazon's responsibility of sending them the 1099-K.
    Yes, exactly but it's the difference between "honor system" versus IRS receives hard, cold figures. I think anything over about $2400 a year is taxable unless you file long form and have deductions that would allow a little more income without taxes possibly.

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  9. #15
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    Quote Originally Posted by savetheunlikely View Post
    Very interesting info, thanks!

    Internal Revenue Service (IRS) regulations require that U.S. payment processors, including Amazon Payments, file a Form 1099-K to report unadjusted annual gross sales or payment volume information for customers that meet both of the following thresholds in a calendar year:

    More than $20,000 in gross payment volume
    More than 200 transactions

    So if you're not making more than $20,000 a year on anything related to Amazon Payments (mturk, selling on Amazon), it looks like you're golden. Phew. For those talented individuals (Jim, Sniksnak), I can see the concern.
    But that just means we wouldn't get caught because the IRS isn't filing a 1099-k. You are still supposed to file taxes on money made over a certain amount. I think it used to be 600.00, Anyone know?

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    I believe to file it as income it has to be greater than $550 or $599 not really sure. It may be over 600 now. When I was working from home before that is what my accountant told me to do. Most of the time I was able to file what I was bringing in as "hobby".

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    Member SeamusWinkin's Avatar
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    Quote Originally Posted by MelB View Post
    I believe to file it as income it has to be greater than $550 or $599 not really sure. It may be over 600 now. When I was working from home before that is what my accountant told me to do. Most of the time I was able to file what I was bringing in as "hobby".
    This has all been fascinating as a thread. I would love to hide income from the IRS because they are an evil entity taking our hard earned $ for uses I seldom agree with but I am seriously risk adverse unless the reward is huge. I am currently retired (work-tirement) so what I can earn over Social Security is limited to around 17K a year before the penalties become huge. I am also reward motivated so we would have to be considering a huge payoff (fort Knox type) before I would even fantasize about it. If they make a movie about it like Oceans 11 I want to be the George Clooney character....just saying

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    Member SeamusWinkin's Avatar
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    Quote Originally Posted by MelB View Post
    I believe to file it as income it has to be greater than $550 or $599 not really sure. It may be over 600 now. When I was working from home before that is what my accountant told me to do. Most of the time I was able to file what I was bringing in as "hobby".
    This has all been fascinating as a thread. I would love to hide income from the IRS because they are an evil entity taking our hard earned $ for uses I seldom agree with but I am seriously risk adverse unless the reward is huge. I am currently retired (work-tirement) so what I can earn over Social Security is limited to around 17K a year before the penalties become huge. I am also reward motivated so we would have to be considering a huge payoff (fort Knox type) before I would even fantasize about it. If they make a movie about it like Oceans 11 I want to be the George Clooney character....just saying

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