Claiming Affiliate income

ucladave · #1 02-08-2007, 11:06 PM

Ok, so last year was the first year I made anything. Ive got a full time job, and this is a small amount of income. I was wondering how to go about claiming it on tax forms?

Also, all the earnings are currently tied up at neteller. Should I wait to file until that whole mess is cleared up? Or should I file without it and then ammend later?

Thanks guys

stillshadow · #2 02-08-2007, 11:09 PM

Don't hold me to it, but from what I understand from my tax preparer it isn't income until you actually bring it into the country. As you haven't received the funds yet, I wouldn't think you would need to claim the missing money until it comes in. If you do that, you would claim it as income for 2007 (presuming we actually do see the money and that it is this year) and you can buy an extra year before deciding what to do about it.

PokerProp · #3 02-09-2007, 01:32 AM

My understanding is the opposite but I am no expert.
To my understanding you need to have reasonable control of the funds.
Because in 2006 the funds were under reasonable control and then were not under reasonable control in 2007. These are earnings in 2006 and if NETeller mess is not sorted out is a 2007.
In 2006 NETeller has a 100% payout rate; it would be hard to argue the funds were not under reasonable control. This makes them taxable income on 2006 return.
Again just the way I understand it.

ucladave · #4 02-09-2007, 10:33 AM

Ok, so I have one on each side of the fence lol.

But mostly I was wanting to know how you actually claim it. obviously the companies wont be sending me a 1099 to claim on the 1040, so how do you guys report it?

fatbill · #5 02-09-2007, 12:16 PM

Companies are not required to file a 1099 unless the yearly $ was in excess of $600 US.

Foreign companies could give a rats ass about 1099's! LOL

The government expects you to be honest about reporting foreign income. Honesty would be a good idea if you have deposits that can not be substantiated any other way! ;-)

just MHO....

joeker · #6 02-09-2007, 02:59 PM

"Constructive Receipt" - If you have access to the funds it is considered INCOME, doesnt matter whether your "bring it into the country" or not.

You can file a Schedule C just as with any other misc/part-time income, call it consulting income or whatever.

Or start an LLC and run it through that at which point you can pay with salary or draw and distributions.