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Originally Posted by TussAgee11
600 is the maximum that independent contractors can make in a year without having to pay taxes for that income to the IRS. We all make sure that we stay under the 600 dollar threshold for that league every year.
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I'm not sure that's the way the rules are written and perhaps someone here can correct me, but...
As I understand the IRS rules, $600 is the max you can make from an organization before
they have to issue a form 1099 and report their payments to you to the IRS. In theory, you as the taxpayer are supposed to report your earnings with or without a 1099 regardless of the amount (I know - stop laughing). If you work for 10 organizations and earn $590 from each one, the individual organization would not have to file 1099s because you were below the $600 threshold requiring them to do so. The IRS would expect you (at least in theory) to report your earnings of $5900 on your 1040 with or without the 1099s. If you got audited and the IRS learned (through bank records or otherwise) that you made that money and didn't report it, I think you'd be subject to some back taxes, interest, and penalties.