Hello,
Here is my situation:
We are family of seven. My wife is a house wife or unemployed taking care of 5 kids ranging between ages 8 through 17. I have been unemployed since Feb 2020 due to pandemic. SO me and my wife began doing surveys online in our free time. I have made $ 3500 on Swagbucks in paypal which got deposited to my dads PayPal account. Similarly, my wife did surveys on Qmee and made $1700 and had the money deposited to dad's PayPal as well. We used dads PayPal because I was trying to pay him back since we live in his house so the money went directly to him.
So I am in a unique situation.
So here is my situation or question: Since the money went to my dads paypal account should he file taxes on it keep in mind that Paypal does not issue 1099 unless it is more than $20, 000 or 200 transactions or something. -Or- Should I file taxes on it since the money is generated by us using our accounts.
If I file I know I have to use schedule C to report and pay taxes and everything on it and also if I file since I have kids I will be getting child tax credits so I probably end up getting a refund instead of paying.
Thanks in advance for anyone helping me with this!
Aneel
STOP DOING THAT IMMEDIATELY ... starting in 2022 Paypal will send out a 1099 for as little as $600 for the year. This will force dad to have to file a return on your income which technically he should do for the 2021 income as well even if no 1099 is issued.
you can be barred from paypal for doing business under someone else's paypal account.
Not to mention the tax quagmire you might put your father into.
STOP DOING THAT IMMEDIATELY ... starting in 2022 Paypal will send out a 1099 for as little as $600 for the year. This will force dad to have to file a return on your income which technically he should do for the 2021 income as well even if no 1099 is issued.
I guess this is what I have thought that he will file schedule c and I will cover the tax that he owes. I have stopped using his account. I am new to this so I never really thought about anything like this would happen but now I have learned and corrected myself. I am using my paypal now.
But here is what I will do:
Not file any tax on my behalf but instead just have my father do his taxes with schedule c and using money that that we have made from our accounts that is transferred to his paypal from the survey sites because he actually kept all the money we never really got anything from him to help cover the housing expenses.
Swagbucks and Qmee will never send me any tax documents nor they have asked from us to fill one and we have never provided any social security numbers to them. We never redeemed our points for any giftcards just got money in paypal so the survey sites never asked for any social security.