Blog In the midst of tax season I want to take this opportunity to clear up a myth surrounding the reporting of income and form 1099-Misc. The common misconception is that if a taxpayer does not receive form 1099-Misc or if the income is under $600 per payer the income is not taxable.
However, there is no minimum amounts that a taxpayer may exclude from gross income. Generally, Internal Revenue Code section 61 states that taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. Additionally, there may be taxable income from certain transactions even if no money changes hands as the IRS considers all income received in money, property or service to be taxable unless the law specifically provides and exemption.
Therefore, taxpayers should exercise caution before deciding which income may not be reportable.
However, there is no minimum amounts that a taxpayer may exclude from gross income. Generally, Internal Revenue Code section 61 states that taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code. Additionally, there may be taxable income from certain transactions even if no money changes hands as the IRS considers all income received in money, property or service to be taxable unless the law specifically provides and exemption.
Therefore, taxpayers should exercise caution before deciding which income may not be reportable.
