Taxes and dscout rewards
Since dscout pays you for your participation and entries in missions, you're considered by the Internal Revenue Service as an independent contractor. If we paid you in the form of a check or cash, we would be required to send you a 1099-MISC tax form if you've made more than $600 in a given fiscal year.
However, since we use PayPal to send rewards, we are not required to send out any 1099-MISC forms. Instead, PayPal, which acts as our third-party electronic service, is required to send you a 1099-K tax form if you've met both of the following criteria:
- You've made more than $20,000 in PayPal transactions from any vendor (including dscout) in one fiscal year;
- You've made more than 200 PayPal electronic transactions in one fiscal year.
If you meet these criteria, PayPal will send you a 1099-K tax form to your mailing address as well as making it available to download electronically from your account (learn how to do that here).
In regards to reporting the total money you earned from dscout in a year, you can simply search your PayPal activity for the year in question and sum any transactions from dscout to report as additional income when filing your taxes.