I've read other answers on this website that seem to indicate that I do not need to report it, but I received a 1099-MISC from streamlabs in the amount of $1030.20. Is it still the same way that it used to be where income through third parties under $20,000.00 and under 200 donations isn't required to be reported?
Just because PayPal doesn't send a 1099K, its still income that needs to be dealt with on the tax return. Unless youre a non-profit of some kind, donations are income.
I put the donations in quotes because I know it's income. HOWEVER, I found THIS answer on THIS website.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2725927-i-stream-on-twitch-how-do-i-do-taxes-for-the-money-i-make-or-donations-i-receive">https://ttlc.intuit.com/questions/2725927-i-stream-on-twitch-how-do-i-do-taxes-for-the-money-i-make-or-donations-i-receive</a>
There is confusion as all income is reportable on your tax return. The error is that a 1099 is not necesarilly required to be prepared. Regardless of not receiving a 1099, you are still required to report the earnings and pay your fair share of taxes.
I hope this was helpful.
This is why I'm not understanding it though.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2725927-i-stream-on-twitch-how-do-i-do-taxes-for-the-money-i-make-or-donations-i-receive">https://ttlc.intuit.com/questions/2725927-i-stream-on-twitch-how-do-i-do-taxes-for-the-money-i-make-or-donations-i-receive</a>
that is in relation to reporting/filing the 1099-K not in reporting the income on your return. I added a comment to it and do note that is 3 years old.
I get what you're saying, but the wording doesn't line up with that.
"If you made less than $20,000 related to third party merchant transactions, the IRS does not require you to report it. Its a loophole in the system that still being worked out."
the instruction is for the filing of the 1099 not the reporting of the taxable income.... It is not exactly clear and you should be careful about old dated posts. "Now in order to receive a 1099-k you must of earned income:"
I also commented on the link.. I also reported it to TT as poorly worded. Thanks for pointing it out as I see how it could be misread. I'm not a TT employee.... All the best.
I know we're done with this for the most part, but there's also this.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/businesses/understanding-your-1099-k">https://www.irs.gov/businesses/understanding-your-1099-k</a>
there is nothing other than who fills out a 1099-k, what it reports, and what to do with it. All income is reportable.
Per the IRS
What is Taxable?
Taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. There may be taxable income from certain transactions even if no money changes hands.
Generally, the IRS considers all income received in the form of money, property or services to be taxable income unless the law specifically provides an exemption. This document discusses a few types of reportable income. Information on how to report other types of income can be found in Publication 525, Taxable and Nontaxable Income.