Q: DP Income

branie
310
This would be my first year claiming my DP earnings. Oh yes and my hubby too. I started to input all of our information, luckily most of it get's imported over (I use Taxact). I am stuck when it comes to our DP income though.  I have found the correct place to put it under non-employee compensation box 7, although they are asking questions as though we are a business.  Are we? I am so confused or maybe it is way too late to be attempting this, I was really hoping the little money we made could be inputted and just counted as "other income" and the money we owed would be deducted from our refund. Maybe I am wrong,  IDK. Anyone have any advice.

Thank you.

I must say our taxes are generally very simple, we do own a house, we don't have dependents etc, very straight forward and up until the DP income I would have already been done.  I would rather not go to a professional at this point because our return is basically done  , I just want to make sure I am inputting this correctly. 
branie (rep: 40.3k) posted Feb 09, 2013
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23 Comments
ArtemisDeals
I went to a professional this year. And i made less than 1000 for last year and i believe she didn't even put it in because it was so little. I also live in USA in case you don't.
ArtemisDeals (rep: 7.16k) posted Feb 09, 2013
20
branie
@ArtemisDeals I do live in the US and thank you for your honest answer :)
branie (rep: 40.3k) posted Feb 09, 2013
10
rd995
i did mines already i used hrblock but the way i did mines was under other income then one time payment or something like that cant remember the same words and then enter the amount shown in the dp form hope this helps
rd995 (rep: 97.8k) posted Feb 09, 2013
10
FibroMom
Just a thought for this next year for you guys, in most states you can pick up a sole proprietor business license (for under $50 in most cases) - this will allow you to write off expenses incurred with doing business on the internet (such as internet fees, etc.) and n most cases really cut down on what you have to pay in taxes associated with the W-9 you get from DP each year (also works for eBay related fees.) - there is a little more to it - but well worth looking into.
FibroMom (rep: 170k) posted Feb 10, 2013
30
Florida2Texas
@artemis..if we make more than 600 a yeat from dealspl we automatically get a 1099 in the mail which means dealspl has already reported this income to the irs. If u dont put it on ur tax return chance are u willl get a letter from the irs about the mismatch. I use to work as a tax account couple yrs back and have encountered this happen a lot.

@branie. ..most likely u put ur 1099 income from dealspl on ur 1099 form on the tax return. All the necessary information needed shud be on the document dealspl sent to us. I have not yet started doing mine. .but will let u know for sure when I do and see something different.
Florida2Texas (rep: 10.3k) posted Feb 10, 2013
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branie
Thanks everyone. :)
branie (rep: 40.3k) posted Feb 10, 2013
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Acidbaby
Im assuming your wages are listed in box 7 of the 1099-M. If so you are being paid as an independent contractor (self employed) and you need to pay social security and medicare taxes on that income. You need schedule C and schedule SE and report your wages on line 12 of your 1040.
Acidbaby (rep: 6.84k) posted Feb 10, 2013
20
MdavidK30
H&R BLOCK ... easy does it...
MdavidK30 (rep: 3.56k) posted Feb 10, 2013
01
xptrish
@Fibromom...deductables would also include INK,which is really expensive and if you print out coupons etc. Just think of a years woth and that you would be able to deduct that,it's huge!
xptrish (rep: 67.1k) posted Feb 10, 2013
01
Acidbaby
Unfortunately the average person doesnt have enough expenses to itemize in the first place so those small expenses would end up hurting you in the long run. The are useless for your federal return. People have this misconception that because you spent $1000 on supplies you can deduct $1000 and thats simply not the case. I had over $14000 in per diem last year alone, along with $2000 in specialized clothing, about $750 in tools, plus mileage and other expenses. And still made out better using the standard deduction. The average person just does not have the expenses to make it worthwhile.
Acidbaby (rep: 6.84k) posted Feb 10, 2013
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arsiel
Wow I really need to read up on this tax stuff @_@
Jumping on the bandwagon here for some advice: My gross income for 2012 probably doesn't exceed $3k (full time student until December 2012 here). Is this even worth filing?
arsiel (rep: 13k) posted Feb 10, 2013
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Acidbaby
You should because you will most likely get a refund on your tax paid.
Acidbaby (rep: 6.84k) posted Feb 10, 2013
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xptrish
@arsiel If you don't live with your parents or if they aren't claiming you as a dependant you can file as Head Of Household and be entitled to Earned Income credit,in some cases no dependant(children) are required.The less your income the higher the amount you get.
I've bookmarked the page with qualifications here EITC Home Page--It’s easier than ever to find out if you qualify for EITC
xptrish (rep: 67.1k) posted Feb 10, 2013
22
Acidbaby
You need to have a dependent to file head of household. ALso you need to be a minimum of 25 years old for earned income credit if you do not have qualifying children.
Acidbaby (rep: 6.84k) posted Feb 10, 2013
22
arsiel
My parents claim me as a dependent as of 2012, especially since they benefit from paying from my tuition (at least in this sense ;x). I probably won't get a refund though since there wasn't tax withheld - more like DP stuff.
arsiel (rep: 13k) posted Feb 10, 2013
10
Acidbaby
If youre going to thumb me down for posting facts at least take credit for it.


Head of Household

You may be able to file as head of household if you meet all the following requirements.

You are unmarried or considered unmarried on the last day of the year. See Marital Status, earlier, and Considered Unmarried, later.

You paid more than half the cost of keeping up a home for the year.

A qualifying person lived with you in the home for more than half the year (except for temporary absences, such as school). However, if the qualifying person is your dependent parent, he or she does not have to live with you. See Special rule for parent , later, under Qualifying Person.



Rule 11

You Must Be at Least Age 25 but Under Age 65
You must be at least age 25 but under age 65 at the end of 2012. If you are married filing a
joint return, either you or your spouse must be at least age 25 but under age 65 at the end
of 2012. It does not matter which spouse meets the age test, as long as one of the spouses
Acidbaby (rep: 6.84k) posted Feb 11, 2013
30
Acidbaby
No clue what youre trying to say. What is the deal section?


Your post has no thumbs down at all. Unless youre talking about the post arsiel she can file as head of household for simply being single and not a dependent. Yes I thumbed you down on that. Didnt think it needed and explanation since it was in regards to false information.

Its awesome when people post useful information. But it needs to be true and correct useful information.
Acidbaby (rep: 6.84k) posted Feb 11, 2013
20
branie
The ask and share section should NOT have any thumbs (up or down) in the response area anyway that is just my opinion. You should agree or disagree with your written words not thumbs.

Sorry to all who got thumbs down, I appreciate all thoughts and opinions on this subject and I do 100% agree with Acidbaby it is great to offer information, but it should be absolutely correct. JMO :)
branie (rep: 40.3k) posted Feb 11, 2013
20
MdavidK30
FYI- it may not be a good idea to post about your personal taxes online where everyone can see. Just saying. The question is good- but, your personal info should be kept that- personal.
MdavidK30 (rep: 3.56k) posted Feb 11, 2013
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Acidbaby
This comes back to the other post about short url's. Its not like anyone is posting their social security number. We need to embrace technology not be afraid of it. Just educate yourselves about what you should and should not do.
Acidbaby (rep: 6.84k) posted Feb 11, 2013
00
branie
@MdavidK30..You have the oddest things to say around here!! I would never put my personal information here as I have much more sense then that, some of the things you say here at DP are really kind of ridiculous and I ignore it and I think most others do as well, but when you talk about me as though I am some idiot then I will let you know how I feel. BTW.. I did not say anything else we didn't already know as MM we get 1099's and know we have to claim it, I was wondering what if other MM were having difficulties.

I don't feel I gave information that is not already public knowledge or I have already written about here during my last 6 years as a member.

Just my feelings. Peace to you MdavidK30
branie (rep: 40.3k) posted Feb 11, 2013
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arsiel
Meh, I don't care if people know how much my income was for 2012 - if you snoop around my comments enough, I'm sure you can dig up a ton of information about me. I just finished school and was pretty much like any broke college student.
arsiel (rep: 13k) posted Feb 11, 2013
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erick99
Tax Prep software will ask you about 1099's and you simply enter them. If you made more than $600 you will get a 1099 and the IRS will know you got one so you have to claim it. God, I hate taxes.
erick99 (rep: 15.9k) posted Feb 11, 2013
10