Question

Does taking online surveys count as earned income?

Forum|Forum|5 years ago
January 10, 2021
3 replies
0 views

I receive SSI benefits and do not work, therefore do not pay taxes. I take surveys online and receive rewards in Amazon gift cards. The rewards are inconsistent and vary month to month. I am wondering if without ever working and never paying taxes do I need to fill out some sort of tax form or not? Thank you and God bless!

Not A Product Question

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Mike9241

since you are performing services what you receive is taxable compensation. you only need to file a return if the total amount of these gift cards is over $400. you report this income on schedule C. in addition TT will compute self-employment tax.

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luciekitty04Author

@Mike9241 , do you know if I need to report this to Social Security for SSI? Like I said, I have never filed taxes before because I have never worked. Also, do you know how much I will have to pay in taxes for filling out a form? One of the survey companies said I needed to fill out a W-9. Does this make sense to do that for surveys?

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Mike9241

for SSI purposes I do not know. you will have to call unless another participant on this forum answers your question.

yes a w-9 is to furnish them with your Social Security Number so that can issue you a 1099.

if you do not want them to have your social security number you can apply online at the IRS for an EIN.

you would then furnish them with the EIN.

https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

you can have at least $12,200 in adjusted gross income without having to pay income taxes however you may have to pay self-employment taxes as follows. TT will compute these taxes from the entries you make on schedule C,

net income from schedule C times .9235 = taxable SE earnings. if the result is less than $400 you owe no SE taxes. ignore the following. if $400 or more multiply the result by .153

if all this is bewildering to you, you may want to upgrade to have a TT pro prepare your return or you can pay for a pro. I don't know what your financial situation is, but if either option is unaffordable you may want to contact your state's CPA society. if you qualify they may prepare your return for a lower charge.

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Opus 17

Employee

If you file a tax return for any reason, you must report all your taxable income, regardless of the $400 limit on self-employment.

However, I think consideration here should also be given to the question of whether this is "other" income like a hobby, or self-employment income from "an ongoing trade or business."

https://www.irs.gov/businesses/small-businesses-self-employed/business-activities

See here for a 9 factor test:

https://www.irs.gov/faqs/small-business-self-employed-other-business/income-expenses/income-expenses

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luciekitty04Author

@Opus 17, I have never worked and never filed taxes. Does claiming gift cards for Amazon inconsistently count worthy to fill out a W-9?

Hal_Al

Employee

Q. One of the survey companies said I needed to fill out a W-9. Does this make sense to do that for surveys?

A. Yes. But the question is academic. If the company says you have to do it if you want the "job", you have a choice to make. If they send you a form 1099-Misc or 1099-NEC, you will have to report the income. If they sent the new 1099-NEC, the IRS will expect the income to be reported as self employment. If not, you can report it as other income.

Q. Does claiming gift cards for Amazon inconsistently count worthy to fill out a W-9?

A. That's a matter of opinion. I think not, but at least one survey company thinks yes.

You don't say whether 2020 is your first year doing this. If so, you may be OK reporting it as hobby income. Hobby income is still taxable income; it's just not subject to self employment (FACA) tax. Hobby income, though taxable, is not earned income. You can not claim the earned income credit, additional child tax credit, or qualify for an IRA contribution based on hobby income.

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Patty581

Yes that is Self Employment it's a schedule SE I been having trouble this is where these companies are in trouble they call them points but there not there earnings I do work from home doing surveys also and yes I do get SSI also and see SSA and if you get like SNAP they mark this as income Ok if I made $59,278 that's what you made for the year if they tell you No it's only $592 that's for local and county tax and social security and medicare taxes you got to take out Federal and State out of it there not suppose to have you fill that out a W-9 or a 1099 either for those companies the labor union gets in there going to see they have to pay more too.