I've started earning money from a website called usertesting.com. In their tax information, they state they do not send out 1099's and each person should consider themselves an independent contractor. They pay via PayPal (3rd party). Is there a minimum amount I must earn before having to claim the income for taxes? How do I report this income?
Your income will be reported on Schedule C, which is where self-employment income is reported on your tax return. To enter your income, see the steps below:
https://ttlc.intuit.com/replies/5657360
See a sample screenshot below.From the UserTesting website: We do not send out 1099-MISC's to participants, as we pay you through PayPal, a third-party payment provider (see 1099-MISC Exemptions section here). You are still, as always, responsible for reporting all earned income and should consult a tax professional for any tax advice. Here is more information regarding PayPal's reporting requirements, and here is more information from the IRS about reporting miscellaneous income.
You still report the income in TurboTax using the steps above. The steps are for any self-employed income that is not reported on a 1099 MISC.
@JulieCo Hello, I too have also earned income with usertesting.com this year. The link you provided no longer seems to be available with the steps. Could you assist?
Since this is considered self employment income, then you will report that income on a Schedule C.
Next year, should you perform the same services you will likely receive a Form 1099-K when amounts exceed $600. Be sure to keep accurate records for all of your third party network transactions where money is deposited for you.