I know Rover's FAQ states PayPal handles tax documents if we cash out through PayPal. But I haven't seen them yet, and I'm starting to get a bit worried. I don't even know if I should be asking Rover or PayPal about it.
You have to report all your earnings. As an independent contractor, you do not need a 1099 or other tax forms because you do not file them with your return as you do with a W-2. You just need to report your income, which you can get from the Rover Payments page (or Paypal account page).
Thanks. My problem now though is figuring out how to report it. I use TurboTax for my taxes, and it will not let me continue to filling in income without selecting what kind of document I have, and I don't have any.
https://ttlc.intuit.com/questions/2281496-how-can-i-report-income-with-no-1099
Apparently regular Turbo Tax does not have the option for Schedule C, and instead I must purchase Turbo Tax Home and Business, costing no less than $50. I'm getting kinda fed up with this whole thing, I knew taxes were expected to be filed but I was not expecting it to be so complex and obnoxious.
Yes, unless you have a very basic return, you have to pay for other versions of Turbo Tax. There are other electronic tax services (TaxAct for one) but they aren't as good IMO. I tried TaxAct one year and it was basically just filling in the forms line by line.
You can deduct the cost of the TurboTax software on next year's taxes as an expense. Yes, the Home & Business version is more expensive but it covers more situations. TurboTax is definitely cheaper than a professional but you need to do what makes you comfortable.
Use http://freetaxusa.com Its exact like Turbo Tax but its free, they only charge you $12.95 for your State return but Federal IS FREE
Use the amount shown on your Payments history page:
https://www.rover.com/account/payments/
as gross income earned from Rover on Schedule C.
Rover outlines the process here:
If I'm not mistaken, you will only receive a tax document from PayPal if you've made over $20,000.
Dang, didn't even know it was possible to make $20k from pet-sitting. Thank you!
There are many sitters who earn more than 20K per year on Rover!!
PayPal can be used by many different money making ventures, (think Ebay sellers), so they have set a minimum of 20K of earnings before they'll send a 1099. I used the Home and Business version of Turbo Tax which includes business income on Schedule C. Well worth the tax prep money in my experienc
How will I know if I will need to submit a W-9 and receiving a 1099 ? • If you’ve been paid out over $600 via check over the course of a calendar year, Rover will request a W-9 and will send you a 1099 tax form.
• If you’ve received $20,000 or more in payments via PayPal, then PayPal will contact you directly with details about your W-9 and 1099 forms.
• If you’ve received less than $600 via check or $20,000 via PayPal, you won’t receive a 1099 form from Rover or PayPal or be asked to submit a W-9.
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So does that mean we don't have to report our earnings? Where do we?
No, it doesn't mean you don't have to report your earnings. https://support.rover.com/hc/en-us/articles/203062540-How-do-taxes-work-
It's kind of hard to report earnings when PayPal - where I redeem my earnings - hasn't provided any tax documents yet. And before you refer to the FAQ link again, note that all it says for PayPal is they provide tax documents. That's it. It's not telling me anything too useful.
As an Independent Contractor, you are expected to keep your earnings record and file them appropriately. Cari gives a detailed explanation on this thread: https://www.rover.com/community/question/12753/schedule-c-or-1099/
What information would be "useful" to you?