Fiverr Community Forum

1099 form required from fiverr by irs rules

When can we expect these from Fiverr?

Form 1099-MISC is:

Used to report payments made in the course of a trade or business to a person who is not an employee or to an unincorporated business.

Required when payments of $10 or more in gross royalties or $600 or more in rents or compensation are made.

Provided by the payer to the IRS and the person or business that received the payment.

1 Like

Reply to @pspauline:

The link posted here was not ‘off Fiverr’ It was to another Fiverr forum discussion that was relevant to this conversation.

Sheriff’s Note: The link is Off Fiverr. And the site has this clearly posted on every page, “FRAGGLESROCK IS AN INDEPENDENT REVIEW BLOG WITH NO CONNECTION WHATSOEVER TO FIVERR.COM.”

jmanuc said:
what happens if you transfer fiverr revenues to the Fiverr revenue card?? and not your paypal do you still have to claim on that?

It is still cash that you made :/ You should have to claim on everything you earn regardless of where you send the money.

what happens if you transfer fiverr revenues to the Fiverr revenue card?? and not your paypal do you still have to claim on that?

Because of Affordable Care Act being run through IRS, they are tightening rules and becoming very strict… also with Patriot Act, they are concerned about large sums of unreported money, especially if it is coming in or going out to foreign countries.

Banks also have recently changed rules to prevent large withdrawals.

and there’s this Paypal catch


Sheriff’s Note: Off Fiverr links are not allowed.

You Amercians have a complex tax system, much easier in the UK, technically you’re a freelancer do you not have to do your own taxes !?

hmmm. Are they obligated to provide US taxpayers with 1099’s? Cuz I’m not sure they they are bound by US laws.

Their Washington address:

3514 International Dr NW, Washington, DC

Just happens to be the Israeli Embassy.

Their International address is:

14 HaMelacha St. Binyamina 30500, PoBox :355 Israel

If their US address is the Israeli embassy then they will not be bound by the laws of the US. That’s how it is in England at least (and I believe that Embassies work pretty much the same all over the world)

An embassy is pretty much a piece of your country’s soil in another persons country. So technically the embassy will be Israeli soil and thus the US will not be able to enforce any laws against them (within reason of course, although in the case of murder I think they just expel you from the country to face trial in your own as opposed to the US)

In short: Doubt they are bound by US law.

I don’t live in the US so I don’t know. Is this not something you could make yourself? I mean, just make a recording of your income through Fiverr and submit that?

ryangillam said: I don't live in the US so I don't know. Is this not something you could make yourself? I mean, just make a recording of your income through Fiverr and submit that?

Yes that is what you are supposed to do. But if there is no documentation sent to the taxing authorities, there are some who see little risk in evading the taxes that might be due.

They have no tax id number and no us address so how can we report our earnings? They can’t send their tax info to IRS so how will IRS know. This will be an under the table for me.

I wasn’t aware that it had to be that complicated. Can’t you just declare it as generic income and if needed, provide your PayPal statements as proof of income? Unless you’re making millions here, I really don’t think the IRS is going to care. Like kjblynx said, it’s probably not going to add up to enough money for them to actually tax you on.

I stupidly didn’t realize this would actually be, you know, lucrative. I have been 1099’d… shouldn’t have withdrawn so consistantly! Wish me luck all!

bachas85 said: IF you exceed both, THEN you have to pay taxes. IF not, nope. BUT, always ask an accountant to be sure!

It's not a question about whether you have to pay taxes on the amounts stated. Those are the amounts that will trigger notifications to the IRS. You are supposed to declare monies earned as a self employed individual. This means you also have to pay Social Security and Medical taxes. Your obligation is there whether you get 1099's or not.
But the reality is that, if there is no documentation, the risk of discovery is low.

A while back i did some research on this outside of Fiverr. Fiverr is not a US company so they are not obligated to provide a 1099. However, paypal does report any income you received to the IRS. So, be sure you claim the income you transferred from Fiverr to your U.S. Pay Pal account.

Here’s how it works.

Your account holder, for example paypal, will send you a 1099 and reports it to IRS especially for $400 or more income tier. Lets say you made under that income tier well, the IRS has it so it must be reported.

For individuals reporting single income it would be on the Schedule C or a Schedule C-EZ. ,fill out the misc. sales or income section on Schedule C by putting the total you earned for the year. You do not need any info from this site. If you had any expenses relating to your gig, you can also deduct that from your tax.

Hope this helps all.

No-one should really attempt to offer any tax advice here because it’s very complicated with any sort of ‘freelance’, ‘agency’, ‘contract’ work, especially if it involves a ‘foreign enterprise’ who may or may not use their US HQ for IRS reporting and filing. There is a bunch of incorrect info on this thread. Talk to an accountant and even better, have them file your tax returns, so that they’re listed as the “preparer”, that way you have a tiny leg to stand on if something goes amiss. Of course, they’ll just say their preparation was based on information you provided to them, so it’s not their fault, but hey, it may help a little.

I know not every one behaves in a legal fashion, but I have to mention that in the US, claiming a business expense like a “home office” deduction, whether it’s an entire floor of your house or half of the dining room table, legally, it has to be used “EXCLUSIVELY” to conduct your business. By the letter of the law, you can’t take a spin through Facebook, check that email from Aunt Betty or troll the sales at Baby Gap. I know only two people in the world care - and that every accountant (from CPAs to IRS employees) has actually chuckled at me when I mention that rule, but I just wanted to point it out. I’m bored. :slight_smile:

I’m glad I live in Canada! We simply report other employment income. The good news is that the first $12,000 is tax-free, because, I don’t make that much money on this site! Income tax is minimal up to $20,000. However, there are tax deductions you can claim once you get to the point.