Comments on: Ask the taxgirl: Reporting Misc Income Under $600 http://www.taxgirl.com/ask-the-taxgirl-reporting-misc-income-under-600/ Paying taxes is painful... but reading about them shouldn't be. Sat, 21 Nov 2009 12:33:00 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Urbie http://www.taxgirl.com/ask-the-taxgirl-reporting-misc-income-under-600/comment-page-1/#comment-6466 Urbie Wed, 16 Apr 2008 11:51:55 +0000 http://www.taxgirl.com/ask-the-taxgirl-reporting-misc-income-under-600/#comment-6466 How about if you have a few hundred bucks in miscellaneous income, you got no 1099, and you have expenses that are 'way more than you earned? I'm a pro bowler (meaning that I pay a lot of money to enter bowling tournaments, and occasionally win some of it back!), and made... hmmm -- looking back at it, I guess I did make slightly more than $600, which I guess would mean a Schedule C. Suppose my income from bowling were under $600, and expenses were around $1800 -- what would I do about that? How about if you have a few hundred bucks in miscellaneous income, you got no 1099, and you have expenses that are ‘way more than you earned? I’m a pro bowler (meaning that I pay a lot of money to enter bowling tournaments, and occasionally win some of it back!), and made… hmmm — looking back at it, I guess I did make slightly more than $600, which I guess would mean a Schedule C.

Suppose my income from bowling were under $600, and expenses were around $1800 — what would I do about that?

]]> By: Kelly http://www.taxgirl.com/ask-the-taxgirl-reporting-misc-income-under-600/comment-page-1/#comment-6464 Kelly Tue, 15 Apr 2008 15:54:03 +0000 http://www.taxgirl.com/ask-the-taxgirl-reporting-misc-income-under-600/#comment-6464 Why wouldn't you? The tax on this amount is minimal and from an auditor's perspective, it would be easy to prove that the taxpayer was employed. Additionally, if there are expenses associated with the job, you can't take them if you don't report the income. But more importantly - especially to folks like musicians, artists and writers - income is important when seeking loans, etc. As someone who owns her own business, I can tell you that my ability to get a mortgage or car loan is heavily dependent on my AGI. Also, don't forget that there are some credits - like the dependent care credit - that you lose if you can't show corresponding income. Why wouldn’t you?

The tax on this amount is minimal and from an auditor’s perspective, it would be easy to prove that the taxpayer was employed.

Additionally, if there are expenses associated with the job, you can’t take them if you don’t report the income.

But more importantly – especially to folks like musicians, artists and writers – income is important when seeking loans, etc. As someone who owns her own business, I can tell you that my ability to get a mortgage or car loan is heavily dependent on my AGI.

Also, don’t forget that there are some credits – like the dependent care credit – that you lose if you can’t show corresponding income.

]]> By: ron http://www.taxgirl.com/ask-the-taxgirl-reporting-misc-income-under-600/comment-page-1/#comment-6465 ron Tue, 15 Apr 2008 15:44:59 +0000 http://www.taxgirl.com/ask-the-taxgirl-reporting-misc-income-under-600/#comment-6465 In the real world do tax payers report this as income? In the real world do tax payers report this as income?

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