how do I file my taxes as a rover sitter?
Should I be expecting something in the mail?
2 Answers
Hi Clarissa,
It depends how you redeemed your money. If you received your funds through check and they exceeded $600, Rover would be responsible for sending you tax information. If you received your funds through PayPal, they are responsible for sending you tax info but only if you exceed $20,000 in earnings. Here is a help article that explains more: https://support.rover.com/hc/en-us/ar...
Comments
Where are you getting that $20K figure?
From Customer Support. Use this PayPal link to learn more from them: https://www.paypal.com/us/webapps/helpcenter/helphub/article/?articleID=FAQ919&m
That $20K figure isn't in any Rover article or information from Paypal.
Karen, I asked customer support. If you need clarification, feel free to give them a call, they would be happy to walk you through it.
According to the IRS for the end of 2014 if you are filing as single, you don't have to file if you made less than $10,150, if you're filing together with a spouse you don't have to file if you made less than $20,300, or if you're married but filing separately then the amount is $3950. Hope this helps! Heres the link for the IRS form I got the info from: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf%3C/p%3E (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf)
So if we made less than $20,000, we won't get a 1099 form? Thank you!
Those annual income numbers are total income for the year though. If you had a job part of the year and did Rover to make over those amounts then you have to file.
Hi Clarissa,
This answer is a little late for this year, but for future tax years and for new Rover members it may be useful. In addition to knowing how to get a copy of your 1099, it is also important to realize that neither Rover nor PayPal are withholding from your income for tax purposes. What that means is that you are responsible for making regular estimated tax payments throughout the year for income received through Rover. At the city, county and state levels, the timing requirements may change. But at the federal level, tax payments are generally required on a quarterly basis. If, at the end of the tax year, you owe more than $1000 in taxes and you failed to make estimated tax payments, you could be subject to penalties. A good source of information in this topic can be found here:
http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes (http://www.irs.gov/Businesses/Small-B...)
Thanks, Kim