Mailing out tax forms to everyone is costing money instead of making any money.

[Sandra]

This is the second time in a row that filing the taxes costs more as I what I made on Zazzle. I find this extremely frustrating. Why not sent these forms out after a certain amount was made in a year? This practice makes zero sense. On top all the money which was made in a year can't even be put on this tax form, instead it carries over to the next year. What is the purpose of this? To weed out people which don't make enough money in a year? I spent hours and hours painting and drawing my own work and it seems it leads to nothing on here. Just some feedback on this.

[KeegansCreation]

I think these sorts of decisions are made by the IRS, not individual companies.

[randysgrandma]

I don't keep up on tax laws anymore. But it used to be they didn't have to mail them out if they paid you less than $200.00. When we ran a business we had a lot of employee turnover. It was costing us a lot of money to print and mail 1099 to people who only worked a few days to a few weeks. Then we found out we didn't have to send to to people who earned less than $200.00 dollars. We told the new hires that they would be responsible for reporting to the IRS any earnings less than two hundred dollars. We just recorded their wages as miscellaneous business expenses. 

[randysgrandma]

Sorry my memory is a little fuzzy. It was $600.00 not $200.00

[Sandra]

This is what I heard too. I just googled it to make sure and it is 600 dollars a year.

[randysgrandma]

I am on two other PODs and have never gotten a 1099 from them. 

[WBartworks]

I think you still have to pay taxes on it regardless if your combined income from all sources is at least $600.  

[Sandra]

No, it is the decision of Zazzle. There is no need or requirement for them from the IRS to sent out these forms to everyone. It is only required if you make a certain amount of money with them which is at least 600 dollars a year. You can google it. Not making much money on here is one thing since it can take a while to be successful but basically ending up being in the minus and loosing money because of this, is ridiculous. I'm sure there is some software or something they can come up with to find a solution for this. I like Zazzle's  products and the way you can design on here but this is really taking the motivation out of everything.   

[Windy]

I am not understanding how it is possible to lose money as a result of being issued a 1099 form. Whether you get a 1099 form or not, you are supposed to pay taxes on all money you earn. 

[James]

Hi @Sandra, 

This is not Zazzle's decision I'm afraid. We're following guidelines from the US IRS. Also, the threshold for Royalties is $10. We mention this in our help article here,  and the IRS also mentions it on their website, here. 

We hope this clears things up a bit. If you have any more questions regarding your 1099's which are not addressed in the links above, we would advise you to contact a legal tax professional or IRS representative. 

Have a great day! 😊