Question about tax stuff

marlinspike

This is what I got from calling the IRS hotline, and I wanted to check here to make sure I understood everything correctly. So, is this how it works?
By the end of February smugmug sends me a 1099-miscellaneous and in box 7 I report my earning. Also I have to fill out a 1040 C or 1040 C-EZ for April 15. The 1040 is where I note things like business expenses and stuff like that. Then I have to taxes on any net earnings of $400 or more. Is this how it works? Is that all I need to do? There was something he mentioned about filing 4 times a year. Anybody know what that is?
Thanks,
Richard

Toni

Right from the horse's mouth, here is Smugmug's part for Pros. We ask our Pros to check out this Help page: http://smugmug.com/help/reporting
That page explains how to check your profit and also gives you the link to the IRS form that we have to have filled out and returned to us before we can send you a check. At the end of each year we have to fill out and send the Pros (who have received $600 or more from us) that 1099 form for your tax records. We also have to notify the IRS of the total amount we have paid you. (Below the $600 amount we are not required to send that form or report to the IRS, but you are still responsible for the amount.) The rest is up to you. If you have to pay Estimated taxes on a quarterly basis you should keep track of the amount that Smugmug pays you to include with that. Hope that helps!

Andy

hey toni


nice to see you posting here, and thanks for the great answer.

marlinspike

I had more questions posted here, but nevermind. I did some reading up and figured things out. Interestingly enough the tax forms are better at explaining things than their little tutorials.
Richard