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Do I pay taxes quarterly or yearly as a 1099 "employee" ?

Hey all,

I get my Rover payments through PayPal. I know that I'll be provided with a 1099 from PayPal next year. I was reading somewhere online that 1099 "employees" are actually required to make quarterly tax payments...so shouldn't I be receiving some sort of tax document every three months? I tried to select tax documents for 2017 through PayPal and it said nothing was available. Any advice/suggestions are appreciated.

3 Answers

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Walt G.

Book a Stay
Woodbridge, VA

Emily, you should consult your tax advisor but it is wise to make quarterly tax payments to avoid a penalty when you file your taxes next year. All of this depends upon your total income, not just Rover income, so if you don't pay 90% of your total taxes due a penalty is charged.

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Maranda M.

Hi Emily! If you are solely a 1099 employee with no W-2 income, it would be smart to make quarterly tax payments. Its mainly necessary if your tax liability is over $1000. However, you lessen your liability at the end of the year.

To make these payments, you don't receive anything. I obviously don't know who/or how you do your taxes, but you should be given the option to do estimated tax payments. I am an accountant, and we recommend them to people. I've done my personal taxes through turbo tax and they always give you the option at the end. They will come up with estimates based on your prior year tax liability. You will be given the opportunity to print vouchers, if using a service like this, and you just send a check with the voucher when they are due. The due dates are 4/15, 6/15, 9/15, 1/15 of the next year.

So it may not be required, but it's definitely a good idea if your only source of income is 1099 income. If you have W-2's that have withholding, it's most likely not necessary.

Hope this helps!

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Hillary H.

I don't believe you'll receive anything from PayPal unless you make over $20k in the year. You're not an employee of Rover's, you're an independent contractor. Since you're an IC, you should be keeping track of your income yourself and will not receive tax documents from Rover. I am personally using QuickBooks Self-Employed to keep track of my income from Rover and mileage. They give you an estimated quarterly tax payment, that way you will not get a tax penalty next year when you go to file your taxes. You can pay quarterly taxes here, but they are due today for Q1: https://www.eftps.gov/eftps/

Comments

Thanks for your response but that's not correct. If you're an IC and you make over $600 in the year, you will be taxed on it. It also actually says right on the Rover website, that if you get your money via Pay Pal...that Pay Pal will in fact send you tax information at the end of the year.

Emily J.

Paypal will not send you any Tax form unless you have over 200 transactions/year or like above mention $20K(which I am not sure if it is right amount)

Cuihua L.

I agree with Hillary's response. I use PayPal and made over $600 this year and received nothing from them.

Paige S.

You have to go into options through Pay Pal and request a 1099, they won't send you one unless you request it according to Rover's website. My main question is, do I HAVE to pay quarterly...or can I pay everything at the end when taxes are normally due?

Emily J.

Paypal will not provide a 1099 unless you have over 200 transactions or 20K in payments, and from what I have heard you may still not receive one. Best to keep track of your income throughout the year.

Walt G.

Thanks guys. I mean, Rover keeps track of each payment that you "withdraw" from them every year. With all my Rover income, I take 25% of it and set it aside for what I'll own in the end. I'll talk with my tax person and get it figured out, thanks again,

Emily J.

Emily, just to clarify, I did not say that your income from Rover would not be taxed, just that Rover will not send you tax documents.

Hillary H.

Whether you are required to pay quarterly taxes depends on your situation. You have to cover 90% of your previous year's taxes, either with estimated taxes or withholding from a W-2 job. Please consult with a tax professional for specifics on your situation.

Cari C.

I am interested in this, too. What factors in one's situation trigger a requirement to pay quarterly taxes? Since everyone has to pay 90% through W-2 withholding, does that mean if less than 10% of one's annual income is Rover and tax on one's other income is withheld, then filing 04/15 is ok?

Natasha R.

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Do I pay taxes quarterly or yearly as a 1099 "employee" ?

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