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  • income from medical surveys

    Do you guys report your income from medical surveys if you do not receive a 1099? I was paid $170 for doing surveys last year. Can it still trigger an audit if you do not get a 1099 form and you do not report it as income?

  • #2
    yes

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    • #3
      I'd rather pay the taxes on $170 than risk triggering an audit.

      I've always reported all medical survey income, some years substantial (few thousand $) other years not so much.

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      • #4
        Originally posted by nephron View Post
        Do you guys report your income from medical surveys if you do not receive a 1099? I was paid $170 for doing surveys last year. Can it still trigger an audit if you do not get a 1099 form and you do not report it as income?
        Yes I report all my income rather than cheat my fellow taxpayers. What do you do?
        Helping those who wear the white coat get a fair shake on Wall Street since 2011

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        • #5
          Whether or not you receive a 1099 has nothing to do with it. Payors are not required to send 1099s to s-corp's, either, but the income is still reportable. The gov't doesn't require a 1099 to be prepared for income totaling < $600 for the year simply because it could be a hardship to track and report in cases where small payments are made to multiple people for random services, but it's still taxable income unless you don't make enough to pay taxes on it. Interestingly enough, though, you won't owe FICA taxes if your net schedule C income is <$400 so, if that's all you made, you'll owe income tax but not FICA.
          Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            nephron, the time you had to spend reading these responses probably wasn't worth the $170. Bet this makes you rethink doing more of those surveys this year!

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            • #7
              I'm going to go out on a limb here and say that most folks that happened to get an extra couple of hundred dollars of unreported income over the course of a year would probably not bother including it on their tax returns, comments above notwithstanding.

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              • #8
                Originally posted by Bmac View Post
                I'm going to go out on a limb here and say that most folks that happened to get an extra couple of hundred dollars of unreported income over the course of a year would probably not bother including it on their tax returns, comments above notwithstanding.
                I think you're probably right.
                Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                • #9
                  Does the government get the data on people who get payments without a 1099 form though? When a firm pays you 20 dollars, does it send something to the government letting it know that you received it or is it only uncovered in some sort of audit. Are they able to track gift cards? I don't think that I am going to do these surveys anymore, you have to do 5-10 of them before they actually pay you anything and I don't want to risk an audit if I forget that I did a survey.

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                  • #10
                    Originally posted by nephron View Post
                    Does the government get the data on people who get payments without a 1099 form though? When a firm pays you 20 dollars, does it send something to the government letting it know that you received it or is it only uncovered in some sort of audit. Are they able to track gift cards? I don't think that I am going to do these surveys anymore, you have to do 5-10 of them before they actually pay you anything and I don't want to risk an audit if I forget that I did a survey.
                    I don’t work for the IRS but I feel confident the IRS isn’t going to come out guns ablazin’ against you for $20. I think they’re more concerned about bigger fish.

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                    • #11
                      Originally posted by nephron View Post
                      Does the government get the data on people who get payments without a 1099 form though? When a firm pays you 20 dollars, does it send something to the government letting it know that you received it or is it only uncovered in some sort of audit. Are they able to track gift cards? I don't think that I am going to do these surveys anymore, you have to do 5-10 of them before they actually pay you anything and I don't want to risk an audit if I forget that I did a survey.
                      No, not unless either the payor is audited which leads to a subsequent audit of recipients or the recipient is audited. As CordMcNally said, highly unlikely.
                      Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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                      • #12
                        Originally posted by jfoxcpacfp View Post

                        I think you're probably right.
                        Since I’m neither a CPA nor owner of a personal finance blog I think I have a bit more freedom to express opinions that could result in fraudulent tax reporting. Also, I’m not describing what I would personally do in this situation either.

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                        • #13
                          My income is <$100 from surveys. I doubt very seriously the IRS would come after me for $37 when I pay >$200,000/year in taxes. That's <0.02% of taxes paid.

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                          • #14
                            Now if you use the survey money to fund your solo k that might raise some eyebrows.

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                            • #15
                              The IRS is a creature of habit. Sometimes your number gets picked. Not every inquiry is designed for recovering taxes. Attributes are involved in many programs geared towards compliance. Was all income reported? Yes goes in stack A, No goes in stack B. At that point you may be a statistic, 99% rate of penalties and convictions is the goal.
                              It's like a traffic cop with a ticket or warning. Sometimes it works and sometimes it doesn't. Whatever you do, "I missed it on accident" is the correct response.

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