Money points

new to forum, what are you asking? Are you asking how does the "point system" work? Or are you telling people that the IRS is coming after them?

The guest is informing us that anything earned over $600 anually needs to be declared by the IRS....not that they are coming after anyone.

Thank you for clarifying, volley!

no problem...

Also, to the guest, not all posts are worth points, just fyi.

The reason I was asking was that a member must post quite a lot to make $1,000 in less than six months.

I guess DCC needs to start sending out 1099 forms.

I wonder if I rack up points, and then donate them to a member in need - can I deduct that on my taxes as a charitable contribution?

Hey..good question. Maybe the guest can come back and help us answer that.

Or maybe if I have to consider the DCC points as income, then I can writeoff my DSL and computer as a operating expense since they were necessary to earn that income.

Are we being sarcastic?

Yes and no. I'm just thinking of the implications if someone really did get paid more than $600 in a year from this site.

I noticed that a member has collected enough points to cash out at over $1,000. That could cause her to have problems.

I wonder if the admins can get in trouble for not sending 1099's in this instance.

Thinking about this more....this is a good question. Does payment from this site qualify as income?

Maybe if a member says she has to drive to the library to get on the internet, then she can claim gas/mileage and vehicle repairs as a tax deduction.

Well it must in some way be considered income.It is certainly not volunteer work, as there is money paid out.

You hear the IRS was making a big deal about those "gift bags" they give to stars at the Emmy's, and now they have to file 1099's on the value of all those gifts, and whoever gets them has to report it as income.

I think it is pretty universal -- anything over $600 needs to be reported as income.

The member should just cash out $599.99 this year so she doesn't hit the mark, and take the rest next year.

I am sure she must have cashed out already.

If you think about it, the money we get is either checks or put into paypal.Either way it does say that we are being paid by a company.

The member has cashed out several times-it's in the payments for dcc points-don't think she is holding onto that much money! Hey - if you are-take me to dinner :lol: karen

It does not matter how much you cash out. It is how much in total for the year that the irs is interested in as income. I had this problem doing some free lance work for a friend. Earned 800.00 for the year and had to declare it.

DebtCC does not have our Social Security numbers, neither does paypal, so there is no way to prove who really recieved the money. So I don't think the IRS is going to come bust down my door any time soon.

Good point Jessi. I had them bust down my door so many times, I think I am super paranoid. I am still paying them for something I was suppose to declare but didn't.

We have had this reward program since the last four years and we have our accounts audited each year. We never had any issues regarding the payments done from the DebtCC community. Let me discuss this point with my management and the accounts dept. I will keep you guys posted.

There's a minimum amount that needs to be declared to the IRS as income. Members who have earned more than $600 in a year can request for a 1099C from DebtCC. We will ask our accounts dept. to send the forms to the members in every financial year.

Regards
Mike