I tried to search an answer on this forum but could not locate one.

Questions is, I get lots of offers to participate in Physician surveys. The compensations offered are sometimes in check or gift cards etc. Sometimes in small print they write "the participants are liable for taxes".

So what is the limit or requirement to report this kind of income. Does it make any difference if the income is in form of Cash/Check as opposed to Gift card?

Appreciate your response.

Zip Code: 78230

Great question.

The organization that pays you is required to send you a 1099-Misc for any year that you got money, or other items of value, with a total value of $600 or more. On the 1099, they will report your name, Social Security Number or Employer Identification Number, and the amount they paid to you.

From your perspective, you're supposed to pay taxes on all the income you earn during the year, regardless of whether you receive a 1099 form from each payor. If no 1099 form is prepared, the only way that the IRS will know that you earned this income is if they audited you, and saw the income from these surveys deposited in your bank account. When you get audited, one of the first things the auditor does is to add up all of the deposits you made into your bank accounts during the year, and compare that figure with the income you reported on your tax forms.

I hope this answers your questions.

Zip Code: 01801