If I earn $400 on Pay Pal and another $300 on Cash app for participating in Focus Groups, will I have to Pay taxes on it. Do these entities comunicate with each other. If I am paid by check or prepaid debit cards is that being tracked. I am a little confused. Can you help me out? Thank you
Those two entities do not talk to each other, but it is possible you will receive a 1099-NEC or 1099-MISC reporting the income even though each individual activity was below $600. If the payments are from the same focus group, then it is likely they will issue you an income reporting document to report on your tax return. Since you are being paid to participate, i.e. is is an attempt to earn money, it is considered reportable income to the IRS.
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