Tax Question (dumb, dumb question...)

[OregonGirlie]

As a stay at home mom, if my only income that I have to report is from SR (this would all be under the assumption I make over $600 by December I'm thinking). Approximately what sort of taxes would I be responsible for? I mean how much? Do I have to add this onto our jointly filed taxes, in which case it would add a lot more since we're in a higher tax bracket for joint? Forgive me, I'm Canadian, and am still learning how to do taxes as well as american taxes. I'm a tax idiot.

[m 'n c]

i don't know how it works in canada but if you were in the US you'd have to report any amount not any amounts once you hit $600. The $600 would be for all offers, surveys, and trials that you participate in and get credit for but not shopping. You would report it on your annual taxes as other income and thus gets taxed at whatever bracket you are in. The $600 amount people are familar with is what triggers a Form 1099 it is not the amount that triggers whether or not your report it. Per the IRS you have to report all income earned no matter how much or where it comes from.

Trying to file separately for this little amount would really screw up your married filing jointly taxes as you would now have to file married filing separately and have to decide who gets to deduct what (ie kids, charity contributions, etc). It is not worth it. Just dump it in other income similar to how you do your interest from bank accounts.

[m 'n c]

I will say on a side note that the chances of getting audited by the IRS is slim to none as they are notorious for being understaffed and only tend to audit about 2,000-5,000 people/businesses a year out of the millions who file. If you are a gambler your odds are pretty good on not reporting anything and being fine. Its your choice.

As a professional though, I have to say file it as other income otherwise I'd get in trouble due to the ethics involved.