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'NO 1099' DOESN'T MEAN 'TAX EXEMPT'
November 28, 2007
The IRS has issued a "Fact Sheet" that explains the taxablity of miscellaneous income, including moonlighting income, gambling winnings, and prizes. Some key bits:
It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income.
And:
Even if a W-2G is not issued, all gambling winnings must be reported as taxable income regardless of whether any portion is subject to withholding. In addition, taxpayers may be required to pay an estimated tax on the gambling winnings.Losses may be deducted only if the taxpayer itemizes deductions and only if he or she also has gambling winnings. The losses deducted may not be more than the gambling income reported on the return.
So keep track of that moonlighting income, and those deductions.
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Comments
Please help....My wife works on a navy base in Japan for an american company out of virginia. She works a rew days a week stocking food items on the base commissary.
she got a 1199 misc, she was told by company and all the others this job was tax free, she made just under 1,200 dollars. This is not her business and just works stocking food items the 1199 is confusing me Block #7 is only filled out with the amount 1143.00nonemployee compensation. Do we need to put this on taxes? Does this need to be reported? the form online is asking what item we are marketing , she is only a worker..please assist.
Posted by: alan cohen | February 1, 2008 4:11 AM