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If you had to file a w-9 form to second life, and you are already did your taxes what do i do?


RoseMarieDiana
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You are fine. Filing a W-9 with Linden lab provides them with the information they need to have on file in case they need to report your income cash out transactions to the IRS. When you meet the threshold established by the IRS then you would have received a 1099-Misc Income form or a 1099-K.

This is the criteria for a 1099-K to be issued by Linden Research, Inc or by Paypal....

Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance.  You should receive Form 1099-K by January 31st if, in the prior calendar year, you received payments:

  • from payment card transactions (e.g., debit, credit or stored-value cards), and/or
  • in settlement of third-party payment network transactions above the minimum reporting thresholds of –
    • gross payments that exceed $20,000, AND
    • more than 200 such transactions

If you did a few Wire-Transfer Transactions that meet the above minimums then Linden Research will send you a 1099-K

If you used PayPal to cash out your Lindens then here is a link to a nice explanation of the PayPal issued 1099-K

http://plantingmoneyseeds.com/3-things-your-home-business-should-know-about-the-paypal-1099-k/

Since you do not get Checks issued from Linden Research Inc, you will not get a 1099-Misc from them. You would need to be on file as an independent contractor with Linden Lab to get a 1099-Misc from them. We as SL account holders are not ICs.

Now technically if you had income of 2K from your sales or services in SL you should have voluntarily reported it. But the chance of the IRS auditing your parents Tax Filings and uncovering your deposits from PayPal is rather slim.

 

Yes I am a Bookkeeper/Accounting Type in RL..

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You are fine. Filing a W-9 with Linden lab provides them with the information they need to have on file in case they need to report your income cash out transactions to the IRS. When you meet the threshold established by the IRS then you would have received a 1099-Misc Income form or a 1099-K.

This is the criteria for a 1099-K to be issued by Linden Research, Inc or by Paypal....

Form 1099-K, Payment Card and Third Party Network Transactions, is an IRS information return used to report certain payment transactions to improve voluntary tax compliance.  You should receive Form 1099-K by January 31st if, in the prior calendar year, you received payments:

  • from payment card transactions (e.g., debit, credit or stored-value cards), and/or
  • in settlement of third-party payment network transactions above the minimum reporting thresholds of –
    • gross payments that exceed $20,000, AND
    • more than 200 such transactions

If you did a few Wire-Transfer Transactions that meet the above minimums then Linden Research will send you a 1099-K

If you used PayPal to cash out your Lindens then here is a link to a nice explanation of the PayPal issued 1099-K

http://plantingmoneyseeds.com/3-things-your-home-business-should-know-about-the-paypal-1099-k/

Since you do not get Checks issued from Linden Research Inc, you will not get a 1099-Misc from them. You would need to be on file as an independent contractor with Linden Lab to get a 1099-Misc from them. We as SL account holders are not ICs.

Now technically if you had income of 2K from your sales or services in SL you should have voluntarily reported it. But the chance of the IRS auditing your parents Tax Filings and uncovering your deposits from PayPal is rather slim.

 

Yes I am a Bookkeeper/Accounting Type in RL..

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Hi RoseMarie,

We're residents like you, not tax lawyers. That said, Googling "minimum income tax filing dependent", returned the following...

http://www.irs.gov/publications/p929/ar02.html

According to that, if you are a dependent, you needn't file a return if your earned income is less than $6,200 and your unearned income is less than $1000.

So, it looks like you needn't file, though you should read the "Other filing requirements" section of that document to be sure...

http://www.irs.gov/publications/p929/ar02.html#en_US_2014_publink1000203761

If you filed for other reasons, I doubt this affects you. But don't trust me on this (or anything for that matter ;-).

Good luck!

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