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RE: How to Calculate Taxes on Steemit Income
I hadn’t even thought about Steemit income. Technically for those that make less than $600 in a year I don’t believe it has to be claimed on any tax forms, but over that our will.
I hadn’t started anything until 2018 crypto wise, so I am good to go until next year. Will keep these tools in mind until then.
Thanks!
In the U.S., there are misconceptions regarding the $600 1099-MISC threshold. Form 1099-MISC is a form that businesses ("payers") are generally required to issue for payments at/over $600 to contractors. The truth is, the $600 limit is only relevant as the threshold for the payers' obligation to report to the IRS the payments made to the contractor; however this has nothing to do with the contractors' obligation to pay taxes on income under $600.
For example, if a contractor earns $500, they might not receive a Form 1099-MISC from the business that paid them, because the business was not required to file Form 1099-MISC. In this case, the income is still taxable to the contractor even though it is less than $600.