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Old 05-08-2015, 02:04 AM
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W-9 Question

I do apologize - I posted a thread with a question about W-8 forms, when I meant W-9. I do not seem to be able to edit the original thread, nor able to reply to it, so I will post my question again here.

Hello, I am a single WV resident under 65, living with my boyfriend. I am just about to graduate from college, and currently my only income comes from Patreon, a site which requires its users to fill out a W-9 form for those who make over $600 per year, which I do. However, since Patreon is my only income at this time, and I only make about $912 a year through the site, am I required to file taxes on it? I realize that my income sources may change before next year, but I am curious as to how this situation would be treated in regard to tax.

Thanks!



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Old 05-08-2015, 02:30 PM
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Quote:
Originally Posted by LizVafiades View Post
Hello, I am a single WV resident under 65, living with my boyfriend. I am just about to graduate from college, and currently my only income comes from Patreon, a site which requires its users to fill out a W-9 form for those who make over $600 per year, which I do. However, since Patreon is my only income at this time, and I only make about $912 a year through the site, am I required to file taxes on it? I realize that my income sources may change before next year, but I am curious as to how this situation would be treated in regard to tax.

Thanks!
The IRS provides Form W-9 for businesses/ contractors to request taxpayer identification numbers from individuals involved with the business in certain reportable transactions. So, you need to complete form W9 on your income from Patreon; if they ask for a W-9 and you do not submit it, they are required to withhold towards taxes on your income. If you submit it as exempt, they won’t withhold anything. Business entities, / some individuals, that are required to file information returns with the IRS need your taxpayer identification number to report the financial activities to the IRS. Basically aslongas the income on Sch C line 29/ 31 is $400 or exceeds $400 you must file return with Sch C; you will file a Sch. C to report the income and deduct any expenses you have toward this employment. Then if the net income is at least $400 you will have to file a Sch. SE, to pay your social security and medicare on the net income. You will receive an adjustment to income of 1/2 of the SE tax on 1040 line 27. Actually, you will not pay federal income tax and state income tax on this income due to lower amount as your taxable income is zero.
OR you can include your income on form 1040 line 21 under other income, however as said, if you had any expenses associated with it you will want to file a sch C for a business so you can claim the deductions. You do have to claim the amount on line 21 as social security income though and pay tax on it, So,you don't have to file a sch C unless you want to claim expenses. However, you do not need to pay quarterly estimates taxes due to no net tax liability on your fed/state returns;



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