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  1. #1
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    Metarewards 1099-misc

    I have recieved a 1099-misc from metareward, which has income in box 7 "non emplyee compensation". I think it should have been in box 3 "other Income". Since I do not work for Metareward or provide any service I cannot be classified as and independent contractor. Has anyone else had this problem? If you have income reported in box 7 then you have to pay Self employment tax etc :mad: .
    Willus
    Last edited by Willus; 02-04-2006 at 05:57 PM.

  2. #2
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    Re: Metarewards 1099-misc

    I got the same 1099 from MetaReward. Is it true that you have to pay self-employment tax on non-employee compensation? If so, they put it in the wrong place because we shouldn't be paying tax twice on this stuff.
    FreeGiftsForum.com - a new place to discuss the free gift sites

  3. #3
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    Re: Metarewards 1099-misc

    You have to Fill out a Sched C and A Sched SE. You have to pay something like 15 % self employment tax on top of regular tax. Does "Metareward" make you fill out any surveys etc? Because if so I think they can claim you are providing a service to them.

  4. #4
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    Re: Metarewards 1099-misc

    Here is what the IRS says SNIP <<>> Here is the URL to this info: http://www.irs.gov/faqs/faq4-3.html
    K

  5. #5
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    Re: Metarewards 1099-misc

    Well. I don't know if I am a Customer or a "independant contractor". I doubt that that can be considered Self Employment income though. Unless Metareward has pulled some bs. I guess I will just try filing it as Other income on 1040.

  6. #6
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    Re: Metarewards 1099-misc

    Just thought this should be added to this to the thread....the contract you "signed" in agreeing to the t.erms on a MR site, taken exactly as they post it (typos and all):

    "3.10 Your Relationship To MetraReward. By providing the Membership information to enroll in or maintain a Membership in the Program, You are applying to receive a service. Your relationship to MetaReward is one of an independent contractor and/or customer. No employee-employer relationship is created by Your use of the Web Site."

  7. #7
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    Re: Metarewards 1099-misc

    So am i a Independant contractor or a Customer?

  8. #8
    DethLOK's Avatar
    DethLOK is offline 12DP Thread Hater and Free Gift Getter User Rank
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    Re: Metarewards 1099-misc

    I don't know... but it's pretty sh**ty they don't advise you on the tax implications of doing their offers. I would argue that withholding such information is fraudulant... and though I"m not willing to give the stuff back... METAREWARDS SHOULD BE PUNISHED... by sending us all more free stuff and footing the tax bill.

    ch'yeah.
    Deth is always approaching, live while you can...

  9. #9
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    Re: Metarewards 1099-misc

    Metareward is really fraudulant on this. They claimed very clearly that we are receiving "gifts".

    Gift is a gift, not a compensation. "Free gifts" means that we don't work for them to get the money or gift.

    I guess I will email them and threat with BBB complaints.

  10. #10
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    Re: Metarewards 1099-misc

    Before you start threatening them, you should contact the IRS or a tax preparer to see what they say. The stuff you received WAS, in fact, free....because you didn't pay MR anything for it. But you did provide consideration in that you visited their advertisers in exchange for the gift. No, you don't work for them. That's why they've checked the "non-employee compensation" box on the 1099.

    Just because THEY used the word "gift" doesn't mean that the IRS views it as such. And it's ultimately the IRS's call. And it's the consumer's responsibility to determine whether or not they're willing to bear the tax burdens on the "gift" before signing up.

    -CBL

    Quote Originally Posted by allenuic
    Metareward is really fraudulant on this. They claimed very clearly that we are receiving "gifts".

    Gift is a gift, not a compensation. "Free gifts" means that we don't work for them to get the money or gift.

    I guess I will email them and threat with BBB complaints.

  11. #11
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    Re: Metarewards 1099-misc

    The Gifts are absolutely taxable. I think the only question is whether Our Relationship with Metarewards is one of a Customer or one of a Independant contractor. They could have simply made a mistake by putting the income under "non-emplyee comp". Or they could have put it there for their own tax advantage. Anyways for all that have done MR deals it could mean paying FICA taxes and or Self employment taxes. Example Self employment tax on $1800 would be about $250. This tax is on top of any income tax (if I am understanding all this).
    The Basic Formula is:

    Net Profit * .9235 *.153. So there is really a big difference from just claiming this income as "other income" (on line 21 of Form 1040).

  12. #12
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    Re: Metarewards 1099-misc

    I think the income is under "non-employee compensation". So You either have to ask MR to give you a corrected 1099, or you have to pay the SE tax. I would rather pay the $250 than have the IRS kick back the return. When you do your taxes and they See income under "non-employee compensation", they will expect to see a completed Sched C and a Completed Sched SE. If you don't fill these forms out I think that your chances of being audited are exponentially higher. Then what if you have done other deals that didn't require you to get a 1099? I think that income is technically still "supposed" to be reported. That would be difficult and costly to defend in an audit imo.

  13. #13
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    Dec 2005
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    Re: Metarewards 1099-misc

    The following goes to show that these “free” gifts are not all the “free lunch” that some think them to be. I have summarized below what many members have posted from three threads relating to receiving IRS Forms 1099-MISC from the “gift” companies.

    I am cross posting to many threads so as many people as possible are aware of the issues in this post.

    Here are three threads relating to 1099-MISC issued to "gift" receivers:
    1. Anyone recieved W2s from YFDirect or Metarewards yet?
    www.scam.com/showthread.php?t=8803
    This Thread was started before people got their IRS form 1099s
    2. Received 1099 Misc from NUI Tech
    www.scam.com/showthread.php?t=9265
    3. Metarewards 1099-misc
    www.scam.com/showthread.php?t=9433

    Here is some additional information to consider when you participate in receiving "gifts" from sites by completing offers. If you receive a "gift' over $600 you have to fill out an IRS Form W-9 with your Social Security and give it to the company giving you the "gift”.

    The company then reports to Federal government this information at the end of the year. In January or early February of the next year, the company will send you a Form 1099-MISC for each “gift” you received and their estimate of the cost of the “gift”. In 2006 MetaRewards sites sent 1099-Ms with dollar amounts in box 7 which makes it Self-employment income. Nuitech issued 1099s with dollar amounts in box 3 which makes it regular income to be reported on IRS Form 1040 other income line.

    Now here is the kicker or bad news. You are considered a self-employed independent contractor by the companies giving you these “gifts”. Essentially you are viewed as owning your own business. Your are providing a service to the “gift” companies, like MetaReward, by taking surveys and completing offers.

    The Federal government considers the total of the “gifts” you received Self Employment income and you will be required to fill out a Schedule C or C-EZ , Schedule SE and IRS Form 1040. You have to pay 15.3 % self employment tax. This goes to Social Security and Medicare just like the F.I.C.A. and Medicare that comes out of people’s wages. But you do not have to pay the whole 15.3%. Line 13 of form SE instructs you to take 50% of the calculated tax and put it on Form 1040 line 27. This reduces your Adjusted Gross income so the base amount on what you will have to pay taxes will be smaller.

    Some good news might be that Tax return sites on the Internet should be able to be used to fill out all these forms. Last year I used www.turbotax.com to do my taxes and it was free. If you go to www.irs.gov, they have links to free Internet tax preparation sites.

    It seems that we who receive these gifts are self-employed businessmen and businesswomen who own businesses. We have to file tax returns just like any other business.

    Now this is the big question that we need to hear from a CPA or tax expert.
    What kind of expenses can we report on IRS Form C?


    Quote Originally Posted by TXCBL
    Just thought this should be added to this to the thread....the contract you "signed" in agreeing to the t.erms on a MetaReward site, taken exactly as they post it (typos and all):

    "3.10 Your Relationship To MetraReward. By providing the Membership information to enroll in or maintain a Membership in the Program, You are applying to receive a service. Your relationship to MetaReward is one of an independent contractor and/or customer. No employee-employer relationship is created by Your use of the Web Site."
    Quote Originally Posted by Kensington
    You have to Fill out a Schedule Cor C-EZ and a Schedule SE. You have to pay something like 15 % self employment tax on top of regular tax. Does "Metareward" make you fill out any surveys etc? Because if so I think they can claim you are providing a service to them.
    Quote Originally Posted by Kensington
    Here is what the IRS says SNIP <<>> Here is the URL to this info: http://www.irs.gov/faqs/faq4-3.html
    K

    And on a more humorous note with what seems to be tongue firmly in cheek, ie joking

    Quote Originally Posted by DethLOK
    I don't know... but it's pretty sh**ty they don't advise you on the tax implications of doing their offers. I would argue that withholding such information is fraudulant... and though I"m not willing to give the stuff back... METAREWARDS SHOULD BE PUNISHED... by sending us all more free stuff and footing the tax bill.

    ch'yeah.

  14. #14
    Join Date
    Feb 2006
    Posts
    7

    Re: Metarewards 1099-misc

    I Emailed Metarewards, which is the same thing as Exclusive rewards (I guess) asking them whether I was considered an Independant Contractor or a customer. Here is the Response:

    >>>>Hello ExclusiveRewards Member,

    You are a customer.

    If you have any additional questions, please feel free to contact us at ExclusiveRewards.com from the contact us page and reference ticket # xxxx. Our Member Services Team is available Monday-Friday 9am-5pm pacific time. Your inquiry will be responded to via email within 2 business days.

    Regards,

    Emil
    ExclusiveRewards Member Services Team
    www.ExclusiveRewards.com

    Please Note: Your offer requirements for ExclusiveRewards are:
    Sign-up and get approved for Six (6) offers total. One (1) offer needs to be completed from "Top Offers 1" group, two (2) offers need to be completed from "Top Offers 2" group, and three (3) offers need to be completed from "Top Offers 3" group respectively.
    All offers need to be kept active for a minimum of 30 days before completion is credited to the account.

    **PLEASE DO NOT REPLY TO THIS EMAIL**<<<<
    Last edited by Kensington; 02-07-2006 at 01:12 AM.

  15. #15
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    Jul 2005
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    Re: Metarewards 1099-misc

    MetaReward (no 's' at the end) is who OWNS ExclusiveRewards. They run RewardsVenue, YourBestRewards, ExclusiveRewards, etc. and are owned by Experian (the big credit bureau). Anyway, you need to go through their "Contact Us" ticketing system or you'll get that response every time. I'll be interested in their response, considering other companies have seen fit to use Box 3 rather than the dreaded Box 7.

    -CBL

    Quote Originally Posted by Kensington
    I Emailed Metarewards, which is the same thing as Exclusive rewards (I guess) asking them whether I was considered an Independant Contractor or a customer. Here is the Response:

    >>>>Hello ExclusiveRewards Member,

    You are a customer.

    If you have any additional questions, please feel free to contact us at ExclusiveRewards.com from the contact us page and reference ticket # xxxx. Our Member Services Team is available Monday-Friday 9am-5pm pacific time. Your inquiry will be responded to via email within 2 business days.

    Regards,

    Emil
    ExclusiveRewards Member Services Team
    www.ExclusiveRewards.com

    Please Note: Your offer requirements for ExclusiveRewards are:
    Sign-up and get approved for Six (6) offers total. One (1) offer needs to be completed from "Top Offers 1" group, two (2) offers need to be completed from "Top Offers 2" group, and three (3) offers need to be completed from "Top Offers 3" group respectively.
    All offers need to be kept active for a minimum of 30 days before completion is credited to the account.

    **PLEASE DO NOT REPLY TO THIS EMAIL**<<<<

  16. #16
    Join Date
    Apr 2005
    Posts
    24

    Re: Metarewards 1099-misc

    I also e-mailed them today to ask for a corrected 1099-Misc form. I haven't received a response yet. But since "Emil" confirmed that we are customers rather than Independent Contractors, I would think that the 1099 could be corrected.

    I have not received a 1099 for the plasma yet...just for the $1K Amazon.com gift card.

    Has anyone received one for the plasma?


    Quote Originally Posted by Kensington
    I Emailed Metarewards, which is the same thing as Exclusive rewards (I guess) asking them whether I was considered an Independant Contractor or a customer. Here is the Response:

    >>>>Hello ExclusiveRewards Member,

    You are a customer.

    If you have any additional questions, please feel free to contact us at ExclusiveRewards.com from the contact us page and reference ticket # xxxx. Our Member Services Team is available Monday-Friday 9am-5pm pacific time. Your inquiry will be responded to via email within 2 business days.

    Regards,

    Emil
    ExclusiveRewards Member Services Team
    www.ExclusiveRewards.com

    Please Note: Your offer requirements for ExclusiveRewards are:
    Sign-up and get approved for Six (6) offers total. One (1) offer needs to be completed from "Top Offers 1" group, two (2) offers need to be completed from "Top Offers 2" group, and three (3) offers need to be completed from "Top Offers 3" group respectively.
    All offers need to be kept active for a minimum of 30 days before completion is credited to the account.

    **PLEASE DO NOT REPLY TO THIS EMAIL**<<<<
    Last edited by four10jen; 02-07-2006 at 01:36 AM.

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