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  1. #17
    Join Date
    Sep 2005
    Posts
    353

    Re: YF Direct needs Taxes now

    The fact they are requiring w9 for lower value gifts makes me think they will hit you with ONE w9 marked as non-employee compensation.

  2. #18
    Join Date
    Jun 2005
    Posts
    27

    Re: YF Direct needs Taxes now

    Well that makes sense that companies can require W-9's on gifts less than $600. Thanks for the explanation. I think that there is method to the madness with the all the recent changes though because they are going to get a greater drop-out rate which will make things more profitable for them. On the flip side though, the drop outs will feel ripped off and this might cause reputation problems for both the advertisers and the Gift Site companies. They need to make it clear that W-9's will be expected and not hide it in their terms in some "the devils in the details" way. The average person isn't going to know about the tax requirement, and will start sites and then just back out when they start weighing the cost reward ratio.
    Well for now I'm going to look before I leap and since it's such slim pickins' out there in the freebieworld I'll probably just go get a part time job to buy a laptop with no strings attatched. I know, I'm a chicken, but better safe than sorry.

  3. #19
    Join Date
    Jun 2005
    Posts
    27

    Re: YF Direct needs Taxes now

    Quote Originally Posted by IWantMyMTV
    The fact they are requiring w9 for lower value gifts makes me think they will hit you with ONE w9 marked as non-employee compensation.

    And correct me if I'm wrong, but I think non employee compensation requires a schedule C?

  4. #20
    Join Date
    Dec 2005
    Posts
    90

    Re: YF Direct needs Taxes now

    They should not mark it as non-employee compensation. Many people have verified this with the IRS... although that doesn't stop companies like Metarewards from sending you incorrect 1099s and then dragging their feet to send you new ones.

  5. #21
    Join Date
    Feb 2006
    Posts
    53

    Re: YF Direct needs Taxes now

    Im in a 50% tax bracket. Does this mean that when i send off for my gift thats worth 1300.00 that I will have to pay half of that in income tax? Does income tax only apply to cash/checks. And say i do apply for a gift, and instead they send a check to buy the gift. Will i be taxed for that?

  6. #22
    Join Date
    Aug 2005
    Posts
    46

    Re: YF Direct needs Taxes now

    Quote Originally Posted by mamerocks87
    Im in a 50% tax bracket. Does this mean that when i send off for my gift thats worth 1300.00 that I will have to pay half of that in income tax?
    if you are seriously in a 50% income tax bracket, then yes.
    Does income tax only apply to cash/checks.
    no.
    And say i do apply for a gift, and instead they send a check to buy the gift. Will i be taxed for that?
    yes.

  7. #23
    Join Date
    Feb 2006
    Posts
    53

    Re: YF Direct needs Taxes now

    thats what i was affraid of. The gift im going for is a Gibson sg guitar. I have 4 offers to go and should complete in a week. It is with onlinerewardcenter.com (NIU site). What is the probablity that they will require a w9? This sucks.....

  8. #24
    Join Date
    Sep 2005
    Posts
    353

    Re: YF Direct needs Taxes now

    Quote Originally Posted by mamerocks87
    Im in a 50% tax bracket. Does this mean that when i send off for my gift thats worth 1300.00 that I will have to pay half of that in income tax? Does income tax only apply to cash/checks. And say i do apply for a gift, and instead they send a check to buy the gift. Will i be taxed for that?
    My friend, if you are in the 50% tax bracket, you must live in another planet
    :D :D

    Current law provides rates from 10% to 35%. The higher your income, the higher your tax rate. The range of income where you stay at any particular rate is known as a tax bracket. For a single person in 2005 the rate on taxable income between $29,700 and $71,950 is 25%, so those numbers establish the 25% bracket. If you're single and your taxable income is between those two numbers, your tax bracket is 25%.

    If you're in the 25% tax bracket you can expect to pay about $250 additional tax if you have $1,000 additional taxable income.

    Gifts you receive aren't considered income. It doesn't matter how large they are. You don't report them on your income tax return in any way. DON'T GET EXCITED, KEEP READING...
    There are a couple of important qualifications on this simple rule:
    True gifts. This rule applies only to true gifts. You can't avoid paying income tax by calling something a gift when it isn't. For example, a "gift" you receive in exchange for services or some other consideration isn't a gift.

    Income after gift. If you receive a gift that produces income, you must report any income produced after the gift. This means when you receive the gift and sell it on ebay, you are producing income.

    You don't have to fill schedule C, but the $value of the gift must be added to your yearly income and that may push you into the next bracket.

    I have a small chart but dunno how to upload it, help! I'm no tax expert, just do research.
    Last edited by IWantMyMTV; 03-17-2006 at 07:47 PM.

  9. #25
    Join Date
    Sep 2005
    Posts
    353

    Re: YF Direct needs Taxes now

    Also don't forget, these conditions are different depending how you file your taxes, as single, married, head of household, etc.

    And the tax you owe is based on the taxable amount after you take your deductions. It may not be too bad.

  10. #26
    Join Date
    Jun 2005
    Posts
    27

    Re: YF Direct needs Taxes now

    So YF Direct is losing it's winning edge on the competition... :( They are now requiring w-9's for any size gift, which is fair game for their own protection, but the adding all the unreasonable offers and credit cards is going to be the ruination of their company, I'm afraid. They used to have the running lead for all the reward sites even though they had a reputation for being slow. They had the best and nicest customer service, and they edged out the competition because of the ease and attractiveness of their offers. I wish they could fiquire out a way to tighten their parameters without screwing up their business. Maybe they are trying to do too many hardline changes at once and they'd be better off doing the W-9 change and maybe requiring the specific offers per page, and only allowing first time credits for offers. Except that the happenings books, ink, and FTD flowers type purchases should be able to be done more than once, in my opinion. They should also specify whether an offer can be completed every six months which is usually the standard for repeating offers, or one year which is what Gevalia coffee and Cosmetique use. I'm afraid that they are trimming too close to the bone and although they might get a better breakage or drop-out rate, they are going to lose the people that actually are the meat of their business. They should keep the offers easy now that they are introducing the w-9 requirement. The W-9 requirement in and off itself should give them the protection and the breakage rates that they need, but the impossible offers are going to screw it all up for them. My major reluctance for doing a YF site now is the feeling that they might be on their way to bankruptcy or something, because their requirements have became impossible for the average Joe to complete. Pity the fools who try to apply for a ton of credit cards. That's sheer insanity, and shame on YFdirect for even tempting people with such lunacy. YF seems to be too desperate lately, and this concerns me in more ways than one.

  11. #27
    Join Date
    Feb 2006
    Posts
    82

    Re: YF Direct needs Taxes now

    I'm poor, and I live under the poverty line. Will they still tax a free gift?

  12. #28
    Join Date
    Sep 2005
    Posts
    353

    Re: YF Direct needs Taxes now

    Quote Originally Posted by Charles78
    I'm poor, and I live under the poverty line. Will they still tax a free gift?
    Same rule applies, if the value of those gifts push you over the non-taxable limit, you have to pay your share of taxes on the excess over the povery line.

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