by Bridget ♥
Member since:
September 18, 2006

Do you think your Gather 1099 was incorrect? **READ THIS**

February 04, 2009 06:35 PM EST (Updated: February 04, 2009 07:37 PM EST)
views: 292 | comments: 75

When I got my Gather 1099, I noticed their total was different from my total, I keep track throughout the year.  It was just over $300 MORE than what I had expected, inlcluding cents which totally threw me for a loop, because my PayPal payments and gift cards were always an even amount.

This was posted, Anyone Else Have an Incorrect Income Amount on Their Tax Forms from Gather? by Marianne R. so I figured I would share what I've learned!  I hope it will help.

 

I posted a question on the Gather's Daily Help Post: February 4th, 2009 and got the following reply:

Hi Bridget,

I'll look into your question for you and respond to you in Gather private messaging. MaryAnne Flynn.

 

I checked my email and she sent me a breakdown of what was included on my Gather 1099.

Gather just included several things that I didn't think would be considered earnings.  I had assumed that some of the giveaways were "freebies"  but I guess I was wrong...Oh well!  I still LOVE Gather!  There are even a few things that I received that aren't inlcuded on here, maybe they were different for some reason. 

For those who have asked about the photo shoot, that hasn't taken place yet, so that's why the total wasn't included on my 2008 Gather 1099 and why I haven't posted a photo essay yet!  :)

I LOVE seeing it broke down in front of me, I think it would be a great addition if Gather would include a breakdown with each of our 1099's in the future, too late this time around! :)

 

PayPal Payment $328 Feb 15, 2008
PayPal Payment $28 Mar 1, 2008
PayPal Payment $68 Apr 1, 2008
PayPal Payment $45 Apr 30, 2008
PayPal Payment $130 Jun 1, 2008
PayPal Payment $215 Jun 30, 2008
PayPal Payment $111 Jul 31, 2008
PayPal Payment $119 Sep 1, 2008
PayPal Payment $300 Sep 8, 2008
PayPal Payment $76 Sep 30, 2008
PayPal Payment $71 Oct 31, 2008
PayPal Payment $75 Nov 26, 2008

 

PayPal Payments $1,566

 

First Gardening Activity Book $14.99 (DK Publishing)

Forgetting Sarah Marshall DVD $19.98 (Misc Giveaway)

Stouffers Coupon $3.89 (Stouffers)

Grow It Cook It Book $15.99 (DK Publishing)

Secret Life of Bees Book $15.00 (Coffee Mate)

The Vision Board Book $24.95 (Harper Collins)

America's Hidden History Book $15.99 (Harper Collins)

Don't Worry Spike Book $3.99 (DK Publishing)

Note to Self Book $19.95 (Harper Collins)

Around the World Cookbook $19.99 (DK Publishing)

Boca Coupon $3.99 (Boca)

Sky Isn't Visible Book $23.95 (Harper Collins)

Eat, Play & Be Healthy Books $52.85 (First Response)

Best Day of Someone Else's Life Book $13.95 (Avon A)

Wear Your Life Well Book $24.95 (Harper Collins)

Crazy 08 Book $14.95 (Harper Collins)

Little Pink Raincoat Book $12.95 (Avon A)

Babyproofing Your Marriage Book $24.95 (Harper Collins)

Eleanor vs Ike Book $13.95 (Avon A)

Just Tell Me What to Say Book $15.99 (Harper Collins)

Ultimate Tea Diet Book $24.95 (Harper Collins)

AMEX Gift Card $50.00 (American Egg Board)

Last Beach Bungalow Book $14.00 (Penguin Group)

Target Gift Card $50.00 (Milk PEP)

Memory of Water Book $14.00 (Penguin Group)

Welcome to Serenity Book $7.99 (Harlequin)

 

Prize Total: $ 518.14

 

GRAND TOTAL: $2,084.14 (exactly what my 1099 says)

 

 

 

link to this page
Bookmark this post:
Facebook
Twitter
Delicious
Buzz
More

Comments: 75

Janet "Jax" B. Feb 4, 2009, 6:43pm EST
Give a ways have to be counted as income also. I found this out the year Angela won a Disney trip...even though we didn't take the trip that year (couldn't afford to), we had to pay taxes on it.
j - Frugal Mom - r. Feb 4, 2009, 6:45pm EST
I had the feeling this was what was going on. It is kind of nice to see the detailed break down though, isn't it? I have not received my form yet, but I have the feeling it might have to do with the fact that we are getting our mail forwarded.
CyberGwen ! Feb 4, 2009, 6:49pm EST
That is sort of what I figured:)
Chris E. Feb 4, 2009, 6:49pm EST
Unless Gather purchased all thoses coupon etc how can they count it as income? Wouldn't that technically be from the company that provided them?

For example I won a flag that Gather said was provided by Paralyzed Veterans of America. Wouldn't they be the ones I would get my 1099 from not Gather if they gave me over $600 in flags or other earning?
J F. Feb 4, 2009, 6:50pm EST
And like I mentioned in another comment. Remember that some states have different reporting requirements than Federal income tax. You said you had an accountant, though. So, they would know that.

You did excellent on here.
Dorian Kirk Feb 4, 2009, 6:52pm EST
that's odd, maybe something something was missed?
Dorian Kirk Feb 4, 2009, 6:52pm EST
i didn't tally mine up, I should just in case
J F. Feb 4, 2009, 6:55pm EST
And of course retail value is bloated. Gather has to make their write-offs, too you know. That's what keeps them going.
Dorian Kirk Feb 4, 2009, 6:56pm EST
oh they counted the prizes, that sucks, they really shouldn't
Elaine S. Feb 4, 2009, 6:57pm EST
I didn't make enough
J F. Feb 4, 2009, 6:57pm EST
A company is not required to give a breakdown of your 1099. You keep track and then if you have a problem with the total, you contact them. They are only required to have it to you at a certain time.
Jill~Sexy Back~ V. Feb 4, 2009, 6:59pm EST
I agree with Chris. The books and coupons and stuff we've won come from OTHER companies, NOT Gather! So those should only be taxable if we received over $600 from the other companies. That just doesn't make sense to me!
Vivian P. Feb 4, 2009, 6:59pm EST
interesting I wonder why they didn't break it done for you in the first palce
Bridget ♥ Feb 4, 2009, 6:59pm EST
JF, I knew that! That's why I contacted Gather because I wasn't sure where they got their numbers from! I didn't have a real problem, I was just curious since ours didn't match!
Chris E. Feb 4, 2009, 7:02pm EST
"They are only required to have it to you at a certain time. "

To bad they don't obey the law. I am still waiting on a 1099 from one of the security companies my husband does work for. I am starting to get mad because I can't file my taxes and do my refund until I get it.
Alta B. Feb 4, 2009, 7:03pm EST
Everything must be counted.
Teresa A. Feb 4, 2009, 7:05pm EST
Well since I have not cashed out or won anything yet I don't have to worry about it ;)
Chris E. Feb 4, 2009, 7:05pm EST
Only if it comes from Gather Alta but some of these items are coming from other companies.
tammie p. Feb 4, 2009, 7:07pm EST
thank you for sharing this
Danielle P. Feb 4, 2009, 7:11pm EST
That is awesome.
Brian .. Feb 4, 2009, 7:11pm EST
that makes sense.
April H. Feb 4, 2009, 7:11pm EST
I see the breakdown does agree with what they sent you but there is a discrepancy as I am aware that you also won the AMtrak Basket worth somewhere between $50 & !$100 plus your big win of over $2,000 for that photo shoot with your family. I think they did the same with mine, some contests & wins were counted others not at all and it certainly isn't that we did not receive the prize last year as I know for sure you & I both received the Amtrak Basket. Your grand total by my estimation is a few thousand dollars to short as is mine, gather seems to have picked and choose what wins they counted.
Bridget ♥ Feb 4, 2009, 7:13pm EST
April,

I forgot about that AmTrak gift basket. About the photo shoot, it hasn't been "paid out" yet as we haven't had our photos taken! Gather can't tax me on it until it's been paid out. So that prize will be on this year's 1099!
Angela A. Feb 4, 2009, 7:14pm EST
I'm assuming that no matter what you get here on Gather, they have to count everything whether you pay taxes on it or not. In the end, it's up the IRS and your tax consultant to figure out if you pay taxes or if it's truly a gift and can be written off.
April H. Feb 4, 2009, 7:17pm EST
Almost forgot, I was aware that wins/gifts & freebies including cuopons must all be declared, Since I kept track myself and do not want to get in trouble with the IRS I am declaring everything which is much higher then what gather sent me, my suggestion is to do the same.
Larry H. Feb 4, 2009, 7:20pm EST
PEOPLE DON'T COMMENT ON MY POST ENOUGH FOR ME TO WORRY ABOUT THAT.
April H. Feb 4, 2009, 7:22pm EST
I also think they forgot your tastebooks which total $43.50 apiece , I can not remember how many you got,, but I am sure they did not include mine on my total, I won 6 they also seem to have forgotten that train set we both won.
Donna S. Feb 4, 2009, 7:22pm EST
thanks for the info.
*LORA* M. Feb 4, 2009, 7:29pm EST
I don't get one and you mean you have to count books and cards and stuff? WTHeck
Sheila P. Feb 4, 2009, 7:34pm EST
I don't think product coupons should count, they come from the companies that make that specific product. Those companies give out those coupons (and they count it as a write off on their taxes, I should know). So what you are saying that two companies are counting write offs, plus the consumer is paying taxes on something that was free to begin with. Most coupons I use, I only use because they are free or mostly free. Most of them I wouldn't have bought in the first place.
Technically, regardless of where the prizes are provided from, Gather was responsible for holding the contests, and awarding the prizes. Because of that, Gather is responsible for providing the tax information on them.
April H. Feb 4, 2009, 7:40pm EST
What Princess said
Bridget ♥ Feb 4, 2009, 7:41pm EST
Heather,

I was talking to my hubby and that's whay he said too! I was just thinkiing of a few things differently and I was wrong! No worries on my end!
April H. Feb 4, 2009, 7:42pm EST
Shelia, unfortunately that is the law; coupons do count as does any thing that we trade for or get from places like freecycle. Gather is only complying with the law.
April H. Feb 4, 2009, 7:45pm EST
This is one reason I try to post a monthly list here on gather of all my wins to help me keep track for taxes, and it is easy to just print them out for my tax man.
My FIL is a contest magnet- he wins all year round, and that's what always tells me when I win something here, that it'll be included in my overall earnings for the year.
Peter Joseph Swanson Feb 4, 2009, 7:49pm EST
I want to win so much - woot !!!
J F. Feb 4, 2009, 7:52pm EST
Chris, then you can report them to the IRS.
Nora Davenport Feb 4, 2009, 8:17pm EST
Geesh, I didn't think that all the other "stuff," like books, freebies, and that counted on the 1099.....wow! I know, though, one year, we won a Disney World trip, all expenses paid, and we did have to pay taxes on it! Guess a person has to really be careful.
Nora Davenport Feb 4, 2009, 8:18pm EST
I don't have to worry, I guess....I've never won anything here from Gather and haven't made that much $$$$.
♠~Dnbuster~♠ ~. Feb 4, 2009, 8:41pm EST
thats intresting. I got a 1099 too. i am sure its right.
Leah Christensen Feb 4, 2009, 8:45pm EST
Wow!!! You really cleaned up last year.
Kevin (''The SiteWizard'') V. Feb 4, 2009, 9:13pm EST
Bridget,

Thank you for getting back to me on this!

Did you not experience this disparity last year as well?

I assumed that you had, hence I suspected that something else was amiss. However, Gather is the facilitator for the contests and promotions. Whether Gather actually paid for the products you received, or shipped them doesn't really matter (to you). You received something which has value, and that value is classified as income...even a coupon for free products.

As Gather 'held' these promotions, it is proper for them to aggregate the 1099 data. Tax laws differ however for a contest or promotion you did not actively participate in (in some cases). None of the promotions, programs or contests on Gather fit in this category though.

Going forward it might be a good idea for Gather (or members) to remind participants in each promotion that their involvement will incur a tax liability.

I'm glad that it is all straightened out though...despite the fact that the tax man cometh.
Phyllis R. Feb 4, 2009, 9:17pm EST
I do not have this problem either!!!
April H. Feb 4, 2009, 9:41pm EST
I could make thousands from this type of stuff and it would not hurt as when you are retired and the income is low, I still actually get money back.
Holli G. Feb 4, 2009, 9:55pm EST
wow
☆ ƒåitĥ ☆ Feb 4, 2009, 10:36pm EST
I'm blown away right now... I understand that legally they have to tax us on things we're given... but it doesn't seem right. Some of those things were 'winnings' so why can't we claim them as 'winnings' when we file our taxes? Other things should have been total freebies... like coupons? Books in exchange for a review? I can tell you that from now on, I probably won't be entering any contests or chances at receiving coupons. There's absolutely NO reason I should pay taxes on a coupon!
Wilma M. Feb 4, 2009, 10:49pm EST
I have to agree with Faith. I've only received one book from Gather and I have yet to make the $600 to qualify as needing a 1099. In fact, I try carefully to stay UNDER that amount.

I'll be very careful what I sign up for here. I'm on Social Security but under 65 so am limited as to how much I can earn in a year. Don't want Gather to push me over that amount!
Faith- winnings are taxed, too. Even if you filed them as a "win" as opposed to income, you would be taxed on it.
Bridget ♥ Feb 4, 2009, 10:52pm EST
Kevin,

This was my first time to receive a 1099 from Gather, so this was all new to me! :)



It seems as though MANY people were unaware that books in exchange for reviews and coupons in exchange for product reviews would be included as earnings.
Heather W. Feb 5, 2009, 12:30am EST
I guess I can be expecting my 1099 to be larger than expected because of where I did a few book reviews. Had I known that the books were going to be included in my taxes, I wouldn't have signed up for the reviewer spots. I won't be doing that anymore.

I just wish mine would get here so I can file and be done with it.
Donna T. Feb 5, 2009, 12:32am EST
I cannot get over all the stuff you got last year!
Monica H. Feb 5, 2009, 12:38am EST
I don't ever have to worry about the form. I don't make enough at Gather to even have to worry about it.
☆ ƒåitĥ ☆ Feb 5, 2009, 12:41am EST
Heather - I know winnings are taxed too, but thanks for that little tid bit. I'm actually pretty smart.
☆ ƒåitĥ ☆ Feb 5, 2009, 12:42am EST
I was talking to Heather princess spanky pants or whatever that name is, by the way, not Heather W.
Janet "Jax" B. Feb 5, 2009, 1:10am EST
I think that's backwards Bridget...since it's a item #7 box, instead of an item #3 box, you'll end up paying more in taxes...and since it's over $400, you'll have to pay an additional self employment or something tax.
☆ ƒåitĥ ☆ Feb 5, 2009, 2:36am EST
I think the whole thing is weird, personally.

Yes, anything that we 'earn' (points that we can transfer into a check, paypal payment or even gift cards of any kind) should be taxable. Nothing funky there. You should pay whatever kind of taxes you need to pay since you're considered an independent contractor or self-employed.

The thing is though... it seems like anything you've won from Gather (a gift card from a photo contest or a camera) should be claimed as 'winnings' to the IRS and you should have to pay whatever taxes you need to pay for that specific kind of income.

There should also be a different section for items like the Secret Santa program because the people who received that money got it because points were donated to make it happen. That particular situation should fall under 'gifts' and should be taxable however the IRS taxes you for gifts.

All I'm trying to say is that I wish the 1099 we received from Gather was broken down by section according to what it was. Income, wins, gifts, donations... Heck -- for all I know these items might be taxed exactly the same way so it wouldn't even matter if they were broken down. I'm just saying that's all I was trying to say. ha
♥Tabitha Cowan♥ Feb 5, 2009, 2:47am EST
Wow, you did great! Doubt I'll ever do that much on here in a year. I'm just not that active in contests, and stuff, and my points earnings seem to be slow going lately.
Karen R. Feb 5, 2009, 2:53am EST
Wow, you won a lot of stuff. This is good to know because I have been winning/receiving more lately and did not know that the books, food and coupons would count as income.
Claudia (kitty-cat) K. Feb 5, 2009, 2:55am EST
Wow. and I was wanting like crazy to make money on line. I'll just have to get out my log book and document everything just like I did when I was working.
Ashley B. Feb 5, 2009, 5:13am EST
That's a lot of stuff, and I never make nearly enough, but if they break it down for the 1099 why don't they include the prize total on your earning account info page here on Gather for your prizes instead of just your cash outs of cards and paypal earnings. I think that would really help us in the future keep better track of our earnings.
Janet Somewhere Up On The Mount Feb 5, 2009, 6:44am EST
Good job.
Elaine A. Feb 5, 2009, 7:48am EST
Wow you've been busy. I'm not here that much, I hardly make enough to get a gift card every few months. I hardly ever enter contests, and the contests I do enter I don't win.
Sandy (back in Ohio...blah!) Feb 5, 2009, 8:40am EST
Yes, I knew this. I don't win very many contests. So, I am safe.
I just posted an article about this myself.

Faith- as to your question about reporting winnings in box 3 vs box 7, according to the IRS, Gather was required by law to report it in box 7, NOT box 3, because they pay out compensation through the site. The IRS specifically says NOT to report prize earnings or awards to nonemployees in box 3, and to report them in 7.

Aside from that- I never said you weren't smart, nor did I infer it in anyway, but thanks for your multi-comment post making it seem like I did.
~*~ tinksmagic ~*~ ~ Feb 5, 2009, 9:21am EST
It's a lot to take in if you aren't aware of how to file, for sure! I wish I had made that much!!
Dagmara H. Feb 5, 2009, 11:03am EST
wow, I would never think that we have to pay the tax on coupons.
☆ ƒåitĥ ☆ Feb 5, 2009, 2:31pm EST
Yeah ok, Heather... you obviously read into my comments much more than they should have been. :o)
carolina m Feb 5, 2009, 6:34pm EST
cool
B.B. B. Feb 8, 2009, 2:17am EST
oh my
Hailey Licciardello Feb 8, 2009, 10:04pm EST
I didn't make anything last year.
CyberGwen ! Feb 9, 2009, 12:30pm EST
Didn't we get The Ultimate Tea Diet in 2007? I remember it being before the year was over??
CyberGwen ! Feb 9, 2009, 12:32pm EST
I just checked....yes, we did. I wonder if there are any others like that on your and my list??
Mine was about what I was figuring on. A little less actually!

Join the Conversation
Chime in! Become a Gather member to comment.
Already a member? Sign in
top
 
Gather | Friends | Groups | Share
About Gather | Engagement Marketing | Make New Friends | Gather Points | Advertise on Gather | Gather Press | Privacy | Terms of Service | Community Guidelines
Books | Celebs | Entertainment | Family | Food | Health | Moms | Money | News | Politics | Spirituality | Sports | Travel | Writing
Version 16961, "Pacino"; Copyright © 2009 Gather Inc. All rights reserved.