Understanding Tax Reporting for Commissions Under $600 | Pampered Chef Earnings

[ChefKeender]

I had a slow year, and earned less than $400 commissions last year. Pampered Chef doesn't send out a 1099 if you make less than $600. So, since I have no 1099, does that mean I do not report my $400 at all when I file my taxes? If I need to, how would I find out my exact earnings?

Thanks!

 

[candiejayne]

You are not required to, but if you had more expenses than the $400 I would claim it just for the loss to bring down your total income. You may get more back that way.

 

[jwpamp]

Yes, you need to report any income you make to the IRS. You can go thru your commission checks and add it up, along with any incentives you received.

 

[jwpamp]

I believe that you need to report ANY income to the IRS....you will most likely show a loss, which would only help you.

To be certain, you can check with your tax preparer or a local HR Block.

 

[candiejayne]

Hmm... we disagree, I was told it was not required, but should. Don't remember who told me that though.

 

[candiejayne]

lol we gotta stop posting at the same time!

 

[BlessedWifeMommy]

Yes, you need to report any income you make to the IRS. You can go thru your commission checks and add it up, along with any incentives you received.

I agree... You really need to report any income and expenses.

 

[BlessedWifeMommy]

Go to CC and in financial forms (managing your business) you can run a 1099 report and eventhough your earnings are less than $600 it will show you your total earnings.

 

[pcsharon1]

The income is reported to the IRS (even if it is less than the required $600 for you to get a tax form from the company) on the companies tax forms so it is in your best interest to claim it.