Originally Posted by
rundrc
Pardon me if his has been answered before. But let's say i have sent 1k per month to my wife for "Goods and Services" over the past 12 months using Amazon Payments. Will this 12k not be considered taxable income for her? If I am audited by the IRS, could I be penalized for not reporting income? I understand that Amazon does not send her a 1099, but I just don't want a mess on my hands down the road. Thoughts? Any help is appreciated.
IRS Reporting Regulations on Third-Party Payment Transactions
Beginning with the 2011 tax year, new Internal Revenue Service (IRS) regulations require that U.S. third-party settlement organizations and payment processors, including Amazon Payments, file Form 1099-K to report unadjusted annual gross sales or payment volume information for customers who meet both of the following thresholds in a calendar year:
More than $20,000 in gross payment volume, and
More than 200 transactions.
xxxxx
Therefore, if you send and/or receive $1K/month, that'll will only be $12K a year which does not meet any of the above threshold.
HTH
source:
https://payments.amazon.com/help/Per...t-Transactions