Question about the FC 1099-misc - VERY IMPORTANT!!!

[xiao2717]

Hello,

I would like to know more info about the 1099-misc that you need to file after you earned $600. How much taxes are they taking out if I earned like $1,000? an estimate percentage is fine. Thanks!

[catherinedwhite]

Your normal scale tax % for the current tax bracket you fall in would apply.
So, it would depend on your total over all income for the year, not
just what you make at Fusion Cash.

[swogden]

I doubt that FC would take out any money from your earnings to pay for your taxes (ie withholding taxes.)  You would have been paid through-out the year -- and they would have to take the money out of those payments in order to withhold funds to pay taxes.

Most 1099-misc amount reports do not have taxes withheld.  You have to pay the taxes at your marginal tax rate when you pay your taxes -- or make provision for paying the taxes on a quarterly estimated basis -- if you expect your misc income would be so large to result in a significant amount of taxes due (ie more than 20% of your total tax bill).

[swogden]

Another consideration:  I admire your goals of exceeding $600 in earnings in the current year.  Suggest you cash out when you want between now and December below an accumulated amount of $600 and defer the issue of the 1099 reporting until next year.

You'll have a better sense of what you can achieve, especially if you get some referrals, and will have more time to adjust to it in the new year.

[xiao2717]

Another consideration:  I admire your goals of exceeding $600 in earnings in the current year.  Suggest you cash out when you want between now and December below an accumulated amount of $600 and defer the issue of the 1099 reporting until next year.

You'll have a better sense of what you can achieve, especially if you get some referrals, and will have more time to adjust to it in the new year.

ok, but does the earnings starts to count towards the $600 by after I received the amount on paypal or does it start counting when I earned. I'm asking because there's a month delay in cashout so it's a bit confusing.