1099-K

[inplainview]

I've been hit by a couple of 1099-K. For some reason, I haven't been aware that I was making so much money

Who else was surprised to see the figure for the gross amount listed on the 1099-K?

[TrustButVerify]

I'm sure it was extremely surprising for all the people that weren't planning on reporting it on their taxes.

Lots of people with ebay businesses or just small side businesses were probably running a lot of money through their paypal accounts. Take a look at all the people on www.fatwallet.com and www.slickdeals.net who buy "hot deals" and then resell on eBay. Usually they are electronics and thus have a small profit margin but make those 1099-K's look quite large.

[benitez17]

I wasn't surprised in the least. Why were you? Is it because of a scenario like TrustButVerify explained, or were you just not keeping track of your income for some other reason?

[Fish]

Funny timing this. Google just sent my 1099 for Adsense.... which mistakenly reports about 100 times my actual earnings! Just what I need. Maybe I should just ask them to write a check for the difference between what they claimed to have paid me and what they actually paid me. That would make for a nice year.

[inplainview]

I wasn't surprised in the least. Why were you? Is it because of a scenario like TrustButVerify explained, or were you just not keeping track of your income for some other reason?

For PayPal and Google Checkout, I'm keeping track of my income with outright, and it shows permanently a clear picture of the income and expenses, so there was no surprise.

But then I got the 1099-Misc from MarketHealth, ClickBank, and CJ, and I simply didn't realize that the cumulative gross amount for all these accounts was way into the six digits zone.

This put me into a completely different tax bracket, so it's time to start thinking creatively...

[TrustButVerify]

But then I got the 1099-Misc from MarketHealth, ClickBank, and CJ, and I simply didn't realize that the cumulative gross amount for all these accounts was way into the six digits zone.

Oh snap!

[inplainview]

Oh snap!

Well, you know how this is, it looks good only on paper. Since I outsource 100% of my projects, a big part of this gross was actually paid out to contractors. Nevertheless, it was a good year all in all.