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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.

  • in reply to Robert Peter Oakes

    ...are you declaring the "Gift"...

     

    Except that Randall now has made it clear it's not a gift, but more of a payment for writing a review. In which case the taxman has a pretty good case that it's work income.

     

    For someone in a top tax bracket, and depending on the country, the tax paid on the top dollar earned gets closer to half (40% in Canada if above like $120k I think).

     

    I would go with Inderpreet's suggestion of considering it a sample, but I don't know if that means the taxes are any different, or if there's an exemption to how much a sample can be.

     

    Good question for a tax specialist for sure. I'd like to hear what the official response is.

     

    Cheers,

    -Nico

  • 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.

  • I have not had any problems in the US for roadtest items, so I am baffled.

     

    DAB

  • 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

  • What product is that from ??

     

    Also, are you declaring the "Gift" as a company asset, there not a corporate / Company (Your Company) gratuity, if anything they should be declared (If at all) as a prize from a contest ??, or atleast thats my understanding, if you participate in a free raffle in your region and win $1000 (A 50/50 draw, or "Your our 1000,000 customer, hers a $1000 to spend in our store) do you declare it as income, do you even declare it at all ?, its for you as an individual, not you as a company??

     

    I would talk to your accountant for professional advice and how if at all this should be declared, you must also have received something well over 10K$ to get that much tax hit ?.

     

    If you have already submitted it, you may have opened up a whole can of pain that may be difficult to get out of but worth the call to your accountant, or at least consulting one.

  • , Please substantiate. I do not really get this.

     

    Yunus