Tax-man Cometh for Meager Royalties

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atform called <i>Medium</i>…”</p><p id="1c39">I did not anticipate being cut off mid-sentence with a dramatic eye-roll. Tax-guy looks at a chart, nods his head with pride of affirmation. “Yep, it’s what I thought, I’ll need a schedule C or maybe form E.” He checks his chart again.</p><p id="66ff">“You mean, I’m going to lose all my royalties because I have to have a separate form?” Tax-guy charges per form. “Yep” he says with a smile. I nearly cried, $88.00 worth of pride-poof gone.</p><p id="759d">Okay, not cool, not professional, not enough aloof disdain for monetizing my art form — but come on, weren’t you excited to be paid for your writing. Before <i>Medium.com </i>my poetry had earned a total of 52 cents at a poetry slam. First place was a tie-so I had to split the total with another poet-but hey hence forth I could claim to be a <i>Paid Poet</i>!</p><p id="9f8b">Even though I am far from a big earner on this platform, I made my self contented with the fact at least my$ 50 investment paid better rates than my savings account!</p><div id="e11e" class="link-block"> <a href="https://readmedium.com/invest-in-your-writing-pays-better-than-dividends-7d17a299adcc"> <div> <div> <h2>Invest in Your Writing, Pays Better than Dividends</h2> <div><h3>Truth-Writing for pennies pays better than my savings account.</h3></div> <div><p>medium.com</p></div> </div> <div> <div style="background-image: url(https://miro.readmedium.com/v2/resize:fit:320/0*mylmiy

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Hok2WtnEAW)"></div> </div> </div> </a> </div><p id="3416">Looks like I will need to reset my goals and aim higher if I want to at least break even.</p><h2 id="4ef2">By the way changes are a coming!</h2><p id="5ba1">The free lance/gig economy writer taxes laws change for 2022. According to a <a href="https://turbotax.intuit.com/tax-tips/self-employment-taxes/tax-tips-for-freelance-writers-and-self-published-authors/L1v0lGVru">TurboTax Expert whose article was reviewed by a TurboTax CPA</a></p><p id="221a" type="7">Under the American Rescue Plan, changes were made to Form 1099-K reporting requirements for third-party payment networks like Venmo and Cash App that process credit/debit card payments or electronic payment transfers. The change begins with transactions starting January 2022, so it doesn’t impact 2021 taxes. Beginning with tax year 2022 if someone receives payment for goods and services through a third- party payment network, their income will be reported on Form 1099-K if $600 or more was processed as opposed to the current Form 1099-K reporting requirement of 200 transactions and$ 20,000. This change could impact people working in the gig economy, online sellers, independent contractors, and other self-employed business owners.</p><p id="90c6">Since we get paid monthly and I was well under $20,000 looks like I didn’t have to declare my$ 88.00 after all, but Tax-guy wanted that second form fee.</p><p id="edb0">I’ll be looking for a new tax-guy! Or perhaps I’ll get brave enough to do my own taxes.</p></article></body>

A cost I had not factored in my goal setting

So Medium sent me a tax form because I earned more than $10. It was a 1099-MISC or 1042-S tax form. I wasn’t sure if I had to declare my $88.00. I searched the Medium help section. Medium Staff says:

We recommend that you contact a tax professional for any questions or recommendations. MEDIUM STAFF FAQs

Dyslexia, coupled with extreme tax form phobia caused me to seek-out a tax-guy when Mom was no longer able to handle numbers/taxes. (generic nomenclature- first tax-guy was a tax-gal in fact)

I’ve found having a tax-guy gives me great relief. So taking Medium staff’s advice I asked Tax-guy. There in lie’s the rub- unlike Mom, I have to pay Tax-guy.

I step into Tax-guys cubicle, 1099-MISC or 1042-S tax form in hand, admittedly proud- I earned ROYALTIES. Doesn’t the word say it all-ROYAL!

I anticipate a conversation with Tax-guy. “Wow-royalties? What did you write?” “Oh, I’m writing for an on-line platform called Medium…”

I did not anticipate being cut off mid-sentence with a dramatic eye-roll. Tax-guy looks at a chart, nods his head with pride of affirmation. “Yep, it’s what I thought, I’ll need a schedule C or maybe form E.” He checks his chart again.

“You mean, I’m going to lose all my royalties because I have to have a separate form?” Tax-guy charges per form. “Yep” he says with a smile. I nearly cried, $88.00 worth of pride-poof gone.

Okay, not cool, not professional, not enough aloof disdain for monetizing my art form — but come on, weren’t you excited to be paid for your writing. Before Medium.com my poetry had earned a total of 52 cents at a poetry slam. First place was a tie-so I had to split the total with another poet-but hey hence forth I could claim to be a Paid Poet!

Even though I am far from a big earner on this platform, I made my self contented with the fact at least my $50 investment paid better rates than my savings account!

Looks like I will need to reset my goals and aim higher if I want to at least break even.

By the way changes are a coming!

Under the American Rescue Plan, changes were made to Form 1099-K reporting requirements for third-party payment networks like Venmo and Cash App that process credit/debit card payments or electronic payment transfers. The change begins with transactions starting January 2022, so it doesn’t impact 2021 taxes. Beginning with tax year 2022 if someone receives payment for goods and services through a third- party payment network, their income will be reported on Form 1099-K if $600 or more was processed as opposed to the current Form 1099-K reporting requirement of 200 transactions and $20,000. This change could impact people working in the gig economy, online sellers, independent contractors, and other self-employed business owners.

Since we get paid monthly and I was well under $20,000 looks like I didn’t have to declare my $88.00 after all, but Tax-guy wanted that second form fee.

I’ll be looking for a new tax-guy! Or perhaps I’ll get brave enough to do my own taxes.

Business of writing

Tax-man Cometh for Meager Royalties

And taketh them away

A cost I had not factored in my goal setting

Invest in Your Writing, Pays Better than Dividends

Truth-Writing for pennies pays better than my savings account.

By the way changes are a coming!