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Paying Taxes on Online Survey Income - USA

Updated March 3, 2014

paying taxes

Claim all income and prizes

All income generated by taking online surveys should be reported on your income taxes. Keep check stubs on file and keep track of any PayPal payments you receive, in case of an audit. As well, you should also be claiming the cash value of gift certificates and other prizes you receive.

Although you might not have to pay taxes on your earnings and prizes from online surveys, it is in your best interest to report them to the IRS. If you must pay tax on your survey earnings, the marginal tax rate will depend on your income and tax-filing classification.

Form 1099-MISC

U.S. law requires market research companies based in the U.S. to report any amount over $400.00 paid to an individual over a single calendar year, on form 1099. If you reach this threshold, the research company is required to obtain your social security number so that the form may be filed with the IRS. This is the only time when it is acceptable to provide a research company with your social security number.

Remember, even if you do not make $400 or more in any given calendar year with a single market research company, you must still report any income you make. Use form 1099-MISC to report your survey earnings.

***The information on this web page is not meant to substitute the advice from a professional. Please consult an accountant or other professional advisor to assist you in best using the information presented here. ***


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