Tax question - Does CC report payment amounts to IRS?

[Lauren]

I found on the forum that we do not receive 1099 forms from CC, so I think that also means that CC does not report specific payment amounts per author to the IRS. Is that true?

I'm just curious how it works. I know that if I make over $400 from any one source that I should get a 1099-R and pay taxes on it as a consultant/contractor. (On the one hand, I'm not making $400 from any one person, but on the other hand, CC could be considered that one source since all the money goes through them.) I'm determined to make more than that here and (knock on wood) may do it before the end of the year. However, if CC doesn't send 1099-R forms, I am wondering what type of information they report to the IRS on author payments.

Yes, I'm going to pay my taxes. But I also like to know the details; I actually enjoy doing my taxes, which may be strange!

(It occurs to me that come January, articles on taxes may become very popular! Must keep that in mind!)

[NicWrites]

CC does not do anything in regards to taxes. It is entirely the responsibility of the author. I don't know how that works for them, but I know that is how it works for us.

[Celeste Stewart]

You can use the reports from PayPal to figure out exactly how much you were paid by CC during a given time period. That's what I did last year. You can download it into Excel too. Don't forget about the self-employment tax (ggrrrrrrr).

[The_Anomaly]

What's the least amount we have to pay taxes on? I'm one of those who have NO idea how to go about finding out what I'm supposed to know when it comes to math and taxes.

[Celeste Stewart]

I'm not sure but I think it's something like 500 or 600 dollars. You can probably find it at the IRS website under "self-employment income" or "other income." Taxes are a pain but if you know going in that you need to deal with them, you can start setting money aside as you go.

I automatically transfer a large % of my earnings directly into a special account for taxes as soon as I get it and I pay quarterly estimated taxes. I keep all of this in mind as I sell stuff on CC. LIke if I sell a $100 article, I understand that I get $65 after CC's cut. Further, I understand that I will owe income and self-employment taxes on the $65 and put money aside accordingly. Kind of depressing when you think about it but that's life as a freelancer......

[The_Anomaly]

So if I finish out this year with less than $600 bucks, it's nothing to worry about? Need to check on that, I do.

Hmm...now that you mention it, I seem to recall learning that the cut-off was somewhere around $800 dollars.

[Lauren]

You have to pay self-employment tax if you earn more than $400. Just confirmed it with the IRS website. (I searched "self employment tax" and the first site that came up was the IRS page if anyone wants it from the horse's mouth.) Self employment tax is an additional 15.3% (on top of the income tax rate).

I am now reading up on all this - maybe I'll start the tax charge with a self-employment tax article this week!

[constant-content]

it works like any other freelance/selling site. Like ebay or elance, its up to the freelancer to claim the proper taxes on the work he or she has sold. This may change in the future but for now this is how our account has told us to proceed. We handle our taxes and you handle yours.

[rcashdan]

I'v just sold an article that wasn't for a public or private request. Is there anywhere I need to click to clinch the deal?

Other question: Judging from Celeste's response farther down, should I assume I'll only see 2/3 of the selling price in my account?

Also wondering if there's a way of communicating with a public requester who said she wanted a different article but has never followed up. Her request doesn't a appear on the list anymore.

If an author has a good reason for requesting payment in 2007 but is below the $50 threshold, where should the request be sent?

[NicWrites]

[quote]I'v just sold an article that wasn't for a public or private request. Is there anywhere I need to click to clinch the deal? [/quote]

No

[quote]Other question: Judging from Celeste's response farther down, should I assume I'll only see 2/3 of the selling price in my account? [/quote]

We get 65% of the selling price. If it's not showing in your account, the person has not yet paid or paid with an e-check that has not cleared.

[quote]Also wondering if there's a way of communicating with a public requester who said she wanted a different article but has never followed up. Her request doesn't a appear on the list anymore. [/quote]

I think the only way to communicate is through the requests.


If an author has a good reason for requesting payment in 2007 but is below the $50 threshold, where should the request be sent?[quote]

Support, which is, I think, the "Contact Us" button at the bottom of the page.[/quote]