Income earned or withdrew?
I made about $7500 with Rover in 2017 but only withdrew $2600 with Paypal. So do I submit the 7500 or 2600 amount for income?
2 Answers
All income is reportable when earned, unless you are some big time CEO who gets "deferred comp." Think about it. It is always referenced as earned income or interest earned. In a general sense, withdrawal--or leaving it to compound interest--is not relevant.
Depends on who you ask!!! Rover says you only have to claim the income when you withdraw the funds. Most CPA's or tax advisors will tell you that you must claim the income when it is deposited into your Rover account. Personally, I believe the CPA's, so in my opinion you should claim the $7500
Comments
Where does Rover state that? I'm really curious since it is blatantly incorrect (and I worked for a Big Eight accounting firm back in the day).
I agree with you Karen and last tax season I went round and round with Rover about this but as usual they dug their heels in and said my CPA was wrong. https://support.rover.com/hc/en-us/articles/203062540-How-do-taxes-work-#7
Oh, I finally see the poor wording they've used in "Will I Receive a 1099?" Pfft! Totally wrong. Guess you have to go with their lead in: "Rover is not a tax advisor and cannot provide advice about taxes, income reporting, or unemployment."