Tax Season

I know, it is still November. No better time to start thinking about how you are going to claim this extra income on your taxes. I would like our more experienced microstockers to share with the new ones what to do. Uncle Sam’s pockets are looking awfully empty these days and I’m sure you do not want to be the one he chooses to fill them.

In February, I talked with my tax advisor at H&R Block. At the time, I had not yet received a payment from any microstock site, although I had sales. She told me it would be easier to report only the money that I have received, not the money still sitting at the agency. She advised me to keep careful records of all funds that get transferred to my account and to report them the following year. This will be the first year that I get to (or have to depending on your point of view) report microstock earnings. Remember, tax was not taken out so you will pay more to your old gray breaded uncle from this stash of cash.

The most important thing to remember is not to be a fool. Report your full earnings and pay your taxes. Ask Richard Hatch from Survivor what happens when you try to fool Uncle Sam.

Does anybody have any advice to share?