A common misconception or myth is that if you are paid less than $600 in a year, then you don’t have to report this income on your tax return. The truth is that $600 is just the threshold for the employer providing a formal 1099-MISC form to you and to the IRS. Even if they don’t file the form, you still need to report the income.
Regardless of whether you got paid $5 or $500, income is income, and it should all be reported. Your tax preparer can help you to figure out how much of it is actually taxable.
Do you have more questions about 1099 forms? Clergy Financial Resources can help with our Pro Advisor service. Visit https://www.clergyfinancial.com/resources/proadvisor/ and get your questions answered!
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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