Question about income

[markdel16]

I received approx. $90 in 2008 for taking surveys online, and mistakenly didn't report it as income on my 2008 tax return. I received no 1099's for any of this income, and now that I'm getting ready to file, I just remembered about this income, while reviewing all my bank statements.

The income was paid through various payments to my Paypal account which I transferred to my Checking Acct. They are a bunch of little amounts $3, $1.50, $10, etc..

Should I file an amended Fed & State return for 2008 to include this extra income before I file? I'm sure the trustee may notice the transfers from Paypal, if he looks back at further than 6 months of my bank statements, and most likely question where the income came from and why I didn't pay tax on it.

I've already e-mailed my lawyer, and I'm waiting a response, but I thought I'd post it here too to get some thoughts.

[sassiebaz]

I wouldn't have said anything.....

[falken]

In the end no one is going to queestion or care where $90 came from, they all have far better things to do.

[hughthehand]

After all, it wasn't over $600.

[Ifonly]

OK, the law says this - an employer/payor/etc. is legally obligated to provide you with a 1099 if the amount is $600 or greater. That does not mean that amounts below that aren't taxable. The burden is on the taxpayer to report all income (in other words, income below $600 isn't exempt from tax). That's the law.

That being said, no one is going to bust chops over $90. Don't worry about it. And let's say in some alternate reality you were audited and the only thing they found was the $90. Well, that would be self-employment income and you incurred expenses earning that income such as your internet, depreciation for your computer and, hey look!, now it's a loss!

So, really, don't sweat it.