Ask Experts Questions for FREE Help !
Ask
    jmgolden9982's Avatar
    jmgolden9982 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 22, 2006, 05:11 PM
    1099 Misc
    Is the small stipend that a homeowners association pays the treasurer and secretary required to be reported on a 1099 for income tax purposes?
    RichardBondMan's Avatar
    RichardBondMan Posts: 832, Reputation: 66
    Senior Member
    		  
    #2

    Dec 22, 2006, 08:43 PM
    Quote Originally Posted by jmgolden9982
    Is the small stipend that a homeowners association pays the treasurer and secretary required to be reported on a 1099 for income tax purposes?
    I would think so, it's earned income and as such is subject to taxes, somebody correct me if I am wrong. That's why they gave you a 1099 and the HO Assoc sends the 1099 to the IRS.
    sandyha's Avatar
    sandyha Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Jan 24, 2007, 10:41 PM
    If it exceeds $600.00 - It should be reported.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 25, 2007, 12:19 PM
    Agree with both.

    Ethically and legally, ANY earned income should be reported, regardless of whether it was documented with a Form 1099 or not.

    However, any amount under $600 is not tracked by the IRS because they assume (correctly in most cases) that the normal expenses generated while earning this income will almost entirely offset the income received, generating a Schedule C that has no net income to report.

    Requiring a Schedule C in such circumstances could also encourage claiming EXCESS deductions that in fact generate a loss that would offset other income. The net result causes a lot of work for both the taxpayer and the IRS that cannot really be justified; hence, the $600 cutoff.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

1099-misc [ 6 Answers ]

Does an individual, not a trade or business, need to file a 1099-misc to another individual ? I can provide specifics if necessary.

1099-misc, ss-8, etc. Need help! [ 1 Answers ]

Ok, hopefully someone can help me here. This last summer I worked for the University of Michigan as an undergraduate student researcher. I worked under a professor and in my opinion was CLEARLY an employee. However, I recently received a good old 1099-MISC form from U of Michigan stating the...

1099-misc [ 1 Answers ]

I filed my taxes and shortly thereafter realized that my 1099-MISC income for contract work was incorrectly reported under box 4 (Federal Income Tax Witheld). So, instead of my 1099-MISC showing nonemployee income, it showed that total as being Federal Income Tax Withheld. Do I just let this go...

F1, w-2 and 1099-Misc [ 4 Answers ]

Hello Everyone, I did go across lot of threads and it helped me. But I hope I can get answers to my queries. I was on F1- status throughout last year. However I was paid on 1099-misc and w-2 by two employers. My Questions 1) Do I need to attach 1099-misc or is the employer tax id enough? ...

F1, 1099-misc and w-2s [ 3 Answers ]

Hello, I am a new member. Its nice to see so many people here who can help. Here's my situation: My status in 2004: Student on F1 (I still am on F1 until my H1 is approved) Was attending school full-time until: August 19, 2004 Working on OPT since August 20, 2004. My nationality: Indian I...

View more questions Search