ChaCha and Taxes

[Princess_Pris85]

Hello Everyone! I'm not sure if I can post about this topic since I saw another ChaCha thread was closed. If this is inappropriate, please close this thread.

On to my question:

I know it's a bit early to start thinking about tax season, but I was just wondering if any fellow Dis-ers who are also on ChaCha have any experience with filing their income taxes listing their earnings from ChaCha. I understand that I will receive a 1099 (is that through mail/email?) and then how do I proceed? I've only received W-2s in the past - do I just add my earnings from the 1099 to that?


Thanks!

 

[JulieEck]

You will report the amount on the 1099 on your return on the line called "Other Income". You will list the name of the company on the 1099 on the form as well. You do not need to include a 1099 with the return like you would a W-2 unless they withheld any taxes for you.

 

[maggiew]

I did this last year. It is just as the PP details. The only thing is you might want to start saving money for that because I ended up owing a few hundred from my ChaChaing and I didn't even really make that much.

I stopped doing ChaCha this year because you don't make much to begin with (especially with the new pay system) and then when you take out taxes at the end, I was making pennies per hour! Not worth my time.

Maggie

 

[Cheshire Figment]

Technically you should be filing either a Schedule C or Schedule C-EZ with your 1040 showing the income from Cha-Cha and then you would be able to subtract related expenses. And if the net income is $400 or more you also have to file a Schedule SE for Self-Employment Income, which effectively is for Social Security and Medicare taxes which are paid by all employees.

Mike (CPA Retired)

 

[uk_wildcat]

Last year I filed taxes for ChaCha and it was easy. I used an online tax program and put it in as independent contractor income. We got a refund, but it did decrease the amount a bit. I made about $2500 last year. This year will be much less because of the change in pay.

 

[Tree]

I do chacha and several other IC contracts. I have take 25% off the top and put it into a special savings account. My husband takes out a bit extra in taxes and it balances it out.