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Being taxed ~$2,000.00 for a RoadTest.

jkutzsch

Curious from the experience of others here.  I participated in a roadtest where it looks like the product is now going to cost me around $2,000.00 from "self-employed" taxes.  Needless to say this is unplanned.  Do other RoadTest participants in the US have suggestions on this?  Is this a common expected event?  My wife is pretty much saying my budget for anything is now blown.

Parents

  • Technically the roadtest product is a sample and not sold so you should have to pay taxes on $00.00 which should be around.... $0.00 image

     

    Ive had issues with customs BUT since I am now dangerously near the poverty line this year, I won't need to worry about any taxes image

  • in reply to ipv1

    To be specific.  The RoadTest required a 1099-MISC form to be filed with the Federal Government stating that I received $3,890.00 as nonemployee compensation. 

     

    Preliminary investigation is showing this is pushing me into self-employed that I now I have to pay taxes on at both a federal and state level.  Even though it is a piece of test equipment not actually "wages".  The basic form is showing that the difference in my tax return with this 1 RoadTest has changed my expected return by what I was told was around $2,000.00.

     

    Having never participated in a RoadTest that required a 1099-MISC to be filed this is all new to me.  I am also not an accountant and previously my general wages and lifestyle is mediocre enough with no fluctuation that it has allowed me to file taxes online.  So I have not approached a tax professional as of yet.  I thought I would see what other members may have experienced and can suggest.

     

    I keep looking out there for specification in regards to wages versus hardware and everything I can find seems to imply actual wages/money received.  But i am still researching.

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  • in reply to ipv1

    To be specific.  The RoadTest required a 1099-MISC form to be filed with the Federal Government stating that I received $3,890.00 as nonemployee compensation. 

     

    Preliminary investigation is showing this is pushing me into self-employed that I now I have to pay taxes on at both a federal and state level.  Even though it is a piece of test equipment not actually "wages".  The basic form is showing that the difference in my tax return with this 1 RoadTest has changed my expected return by what I was told was around $2,000.00.

     

    Having never participated in a RoadTest that required a 1099-MISC to be filed this is all new to me.  I am also not an accountant and previously my general wages and lifestyle is mediocre enough with no fluctuation that it has allowed me to file taxes online.  So I have not approached a tax professional as of yet.  I thought I would see what other members may have experienced and can suggest.

     

    I keep looking out there for specification in regards to wages versus hardware and everything I can find seems to imply actual wages/money received.  But i am still researching.

Children
  • in reply to jkutzsch

    Wow, that sucks. If you are generally an "employee", the only suggestion I can add is that as "self-employed" you are entitled to claim a lot of expenses related to making that self-employed income.

     

    For me (in Canada) I am allowed to claim part of my home expenses for my home office, depreciation on equipment (including my computer), and work related shares of cell phone and internet costs.

     

    If the government is pushing you into having to claim that self-employed income, then after expenses you could actually end up with a loss to reduce your overall taxes.