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Tax Form 1099

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Last year a good number of residents has to fill out tax forms for when they converted more than $600USD. As a result, you could expect to see a Form 1099 in your mailbox.

I know quite a few shop owners in SL closed their doors because they didn't want to be taxed. As we get closer to the end of January, I was wondering if anyone who stuck it out has receiving their 1099 form yet. I have not as of yet, but didn't know if they had begn to send them out. LL's is the only tax form I am waiting on to complete my taxes.

Anyone?

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Linden Lab is required by regulation to have your 1099Misc [income] statements in the mail and to you by February 1st, 2015.

I'm a 1099 Contractor in RL and I haven't received any of my expected 6 1099Misc statements as of the date of my post.

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I knew of the date as I do contract work in RL as well. I've received my three 1099-K and all the 1099MISC's for 2014, except LL's. A couple of places I have done work for send them out in groups. So just wondered if LL had begun sending them out yet.

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"I know quite a few shop owners in SL closed their doors because they didn't want to be taxed.".....

Isn't that like cutting off your nose to spite your face?

I have a lot of irregular income, and am always happy to have to write a big check to the goverement at tax time.  It only happens when I have unexpededly large income.  I hate getting refunds, because it means I did not bring in as much money as I expected.

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West Habercom wrote:

I knew of the date as I do contract work in RL as well. I've received my three 1099-K and all the 1099MISC's for 2014, except LL's. A couple of places I have done work for send them out in groups. So just wondered if LL had begun sending them out yet.

I need to post here more often! Today when I got home 2 1099Misc statements were in my mail waiting for me - LOL **I think i'm under the $600 USD reporting threshold this year so I won't get one from LL

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KarenMichelle Lane wrote:


I need to post here more often! Today when I got home 2 1099Misc statements were in my mail waiting for me
- LOL **I think i'm under the $600 USD reporting threshold this year so I won't get one from LL

 

Indeed. It's not just the NSA. EVERYBODY is keeping an eye on this hotbed of dissidence. Or is it dissonance? Or maybe just dis nonsense? When the 'guests' outnumber the members four to one, you know there's a long line of spooks looking over our shoulder.

Online.jpg

 

 

 

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Dillon Levenque wrote:


KarenMichelle Lane wrote:


I need to post here more often! Today when I got home 2 1099Misc statements were in my mail waiting for me
- LOL **I think i'm under the $600 USD reporting threshold this year so I won't get one from LL

 

Indeed. It's not just the NSA. EVERYBODY is keeping an eye on this hotbed of dissidence. Or is it dissonance? Or maybe just dis nonsense? When the 'guests' outnumber the members four to one, you know there's a long line of spooks looking over our shoulder.

Online.jpg

 

 

 

And one Martian.

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Anyone else get their 1099 yet? They made me fill out tax forms in 2014, so I'm assuming I'm getting one, but so far it's not here yet. I can't file taxes till the stupid thing gets here : \

 

 

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I also thought it was if you made more than $600USD. But, I just read the FAQ's on here about the tax situation and it now looks like if you make $20,000 or more you are required to file. So, now I am throughly confused lol

http://wiki.secondlife.com/wiki/Linden_Lab_Official:Required_Tax_Documentation_FAQ

I also found this article that attempts to clairfy it.

http://sl.governormarley.com/?p=3387

 

 

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You are required to file regardless of amount. However, you will get a 1099-MISC form if you received $600USD or more... and you will get a 1099-K form if you go over $20,000USD. If you get either form, you have to file.

I think they just havent sent them yet.

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Not that I don't believe you, lol (and I do!), I was just wondering where you got the information regarding the 1099-K vs the 1099 Misc forms, listed anywhere on LL's sites. I think LL's has not done a very good job of clarifying things regarding this, personally. I just wated to be able to read etc.

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There is NO way the IRS and US tax code is going to excuse anyone from paying taxes on SL income of several thousand dollars.

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I don't think I suggested that in any way, nor would I even think it. I wanted to know where, if there is such a place, that LL's had listed things more clearly. I couldn't find any place where they have stated things clearly. I can assume things on my own, such as they have to be basing the amount of $ off of payouts, not sales etc. But, they don't actually state that super clearly. If there is a LL's statement that spells things out, I wanted to be able to read it myself.

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I dont know the difference in the 1099 forms either. I was addressing where you mentioned whether you had to file or not -- I thought you meant report your income from SL.

 

it seems to me that the Paypal info is what is relevant, as it is my actual income before taxes. Until I take money out of LL it is not income.

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Yes, I agree. I don't know how the IRs would be able to do it off of sales amounts within SL. It's isn't income till cashed out. I am mostly worried about LL's getting the forms out on time lol

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My husband, who is my business mgr, says we dont get anything from LL, but just Paypal. However, our CPA does the actual taxes so I am not 100% sure my husband is right.

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Natalie... I got the info when I filled out the required forms. It was buried in there. Been that way for years as I;ve been receiving them for well over 15 years now from other clients I work with.

Additionally,

1099-MISC:  http://www.irs.gov/uac/Form-1099-MISC,-Miscellaneous-Income-  (I have highlighted in teh seconed bullet how it pertains to use and LL. In second bullet where it says "other income"... that's where it pertains to us.

File this form for each person to whom you have paid during the year:

  • at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest;
  • at least $600 in rents, services (including parts and materials), prizes and awards, other income payments, medical and health care payments, crop insurance proceeds, cash payments for fish (or other aquatic life) you purchase from anyone engaged in the trade or business of catching fish, or, generally, the cash paid from a notional principal contract to an individual, partnership, or estate;
  • any fishing boat proceeds, 
  • gross proceeds of $600, or more paid to an attorney during the year, or
  • withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

1099-K: http://www.irs.gov/Businesses/Understanding-Your-1099-K   (again highlighted where it pertains to us and LL)

A Form 1099-K includes the gross amount of all reportable payment transactions.  You will receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions.  A reportable payment transaction is defined as a payment card transaction or a third party network transaction.

  • Payment card transaction means any transaction in which a payment card, or any account number or other identifying data associated with a payment card, is accepted as payment.  
  • Third party network transaction means any transaction that is settled through a third party payment network, but only after the total amount of such transactions exceeds $20,000 and the aggregate number of such transactions exceeds 200.

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Well I am stumped, after talking to support, LL claims to have sent forms out at end of January, then refernces the one page that only talks about 1099-K. So now I am stumped. I haven't received my 1099-MISC form. Guess I need to talk to my tax and figure out what next.

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Bringing this back up for curiousity's sake.

 

Has anyone yet gotten the fabled tax form from LL yet?  My partner and I are still waiting on ours. Wondering if we should start fussing at LL about it or not.

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I am stumped how to take care of this matter. LL had me fill out a W-9 for their records based on my SS#. I haven't gotten a 1099-misc from them, and they appear to be holding my transfer from LL to go to my paypal account... I have searched via Paypal - and from them they say as long as you don't do over 200 transactions or $20,000 they don't send any 1099's out... http://www.bankrate.com/finance/money-guides/you-can-file-your-return-without-1099-forms.aspx And I am going to call IRS to make sure neither Paypal or LL messes me over!  LL best get my $'s transfer in my paypal account I have requested 2 weeks ago! 

 

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as far as I can see, no one has gotten a 1099-misc yet. I called. they gave me a case number and told me to fill out a ticket. ugh... TurboTax said to file it under common income since we haven't gotten a 1099-misc.then someone said to go through turbo tax with home and business (costly) and there is an area for a 1099-misc that hasn't arrived. 

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How is the $600 "transaction threshold" if that is indeed accurate, determined? is this at the point of the value of the lindens you sell or is this only when you cash out the USD balance from your SL account?

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Padula Bing wrote:

How is the $600 "transaction threshold" if that is indeed accurate, determined? is this at the point of the value of the lindens you sell or is this only when you cash out the USD balance from your SL account?

I believe it is, when you cash it out from the account..

unless things have changed in the last few years..

 

 

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I called and they told me to file a ticket, and I just got a reply that says the only way you get a tax form from LL is if you go over 20,000 USD or have over 200 cashout transactions in a year.  Pretty much the same rules that paypal has.

 

Hello, Cyzicus Xue:

Residents who, in 2014, had two hundred (200) or more LindeX sell transactions and the value of such transactions is twenty thousand dollars (US$20,000) or more were sent a 1099-K from Linden Lab by the end of January.

As you did not exceed these IRS thresholds in 2014, Linden Lab has not filed a 1099-K for your account. However, you are still responsible for filing your taxes and including relevant transactions with Second Life/Linden Lab.

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I have NOT got my Tax Form 1099 in the mail but, I have not made 200 transfers BUT made over 20,000.. Now what?..do I just go file my taxes an have the tax person figure it out or call LLs?

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