Do you have to pay taxes on money you get through Amazon Mechanical Turk? It's the only "income" I make/have ever made and my total earnings are up to $94 so far.

[dcbelle]

I can't work and am having trouble getting disability benefits (everyone says even if they approve you it will take two years and that's too long to wait) so I got on MTurk to help mom pay some of the bills.  I've never had taxes of my own because I've never worked.  This is the only money I've ever made on my own and I've been doing it about a month.  Do I have to do taxes for this, or does it not matter unless I earn a certain amount, or what?

[SweetieJean]

See 5A here:
<a rel="nofollow" target="_blank" href="https://www.mturk.com/mturk/conditionsofuse">https://www.mturk.com/mturk/conditionsofuse</a>

[dcbelle]

Yeah that just says "you agree taxes are your own responsibility" which I'm trying to do right now.

[TomYoung · Accepted solution]

Generally speaking, the answer to your direct question is "Yes."  You are getting paid as an "expert" or "consultant" or something, and that's considered "earned income."

As a practical matter you may very well have to file an income tax return if you make more that $400 in a calendar year, though you probably will not have to pay any income tax, only Self Employment taxes (Social Security and Medicare).  The requirements to prepare an income tax return for purposes of the income tax vary depending on your personal details, but range from $4,000, (under 65, married filing separately),up to $23,200 (over 65, married filing jointly).

Tom Young

[dcbelle]

What if I only make $300 a year?

[TomYoung]

Then you have no filing requirements because $300 is less than $400.

[dcbelle]

So would it be starting in January, if I only make up to $399 between January and December, I don't need to worry about filing taxes? (and if I don't make over $399 between now and December?) Basically if I just stop earning money at $399, don't have to worry about taxes?

[TaxGuyBill]

If that is your ONLY income, yes, that is correct.

[dave mul]

quick question- what is the $400 threshold based on? I thought 1099 misc's were only issued at $600, or maybe I am getting the whole thing confused. thanks

[LinaJ2020]

The $400 is the filing requirement to file a Schedule C.

If your employee or contractor earns more than $600, you as the payor is required to issue a Form1099-MISC. 

For the payees or employees who receive a Form 1099-MISC, they are required to file a Schedule C and pay self-employment tax if they meet the self-employment requirements and it is more than $400.  

@dave mul

[Compensation66]

My son made just over $1,000 with Amazon and did not receive a 1099 MISC.  He did find the earnings online from Amazon as a self employed business.  He does not believe that he ever agreed to this arrangement.  What does he need to do?  He stopped working for them during last year as a transcriptionist from home.

[DMarkM1]

According to Table 3 of Publication 501, if you he had net earnings from self-employment of $400 or more he is required to filed a tax return, whether he receives a 1099 or not.  The key may be "Net" earnings.  Did he have any expenses associated with earning the income?  If so, those are subtracted to arrive at net income from self-employment.  

The tables 1 and 2 describe the other situations when filing a return is required. If he is required to file for other reasons his net income from self-employment must be reported on his return even if below $400.