Hi everyone, i got a referral bonus of 500$ from my leasing office for referring a tenant do i need to pay tax for that?

[jerry2000 · Accepted solution]

Yes, you do. It is fully reportable and taxable.

[mahesh_ganesan]

how much i need to pay? 30% tax?

[mahesh_ganesan]

i saw in our tt forum that we dont want to report if the income falls less then 600$

[SweetieJean]

Not true. They do not need tio send you a 1099-MISC unless it's at least $600. However, you must still declare it.  The tax rate depends upon your overall total taxable income.

[Critter]

You can report it as other income on Form 1040 line 21. Here's how to enter it in TurboTax.

·         Click the Federal Taxes tab ( Personal in the Home & Business version)

·         Click Wages & Income. (Personal income in the H & B version)

·         Click "I'll choose what I work on."

·         On the screen "Your 2015 Income Summary," scroll all the way down to the last section, "Less Common Income."

·         Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·         On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·         The next screen asks, "Did you receive any other taxable income." Click Yes.

·         On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·         On the next screen click Done.

The income will be reported on Form 1040 line 21 with the description that you entered.