The information below is just for basic informational purposes. instaGC is not qualified to give out tax advice or specific help. You should consult a tax professional (or ask your parents) for the most accurate information for your area and to make sure you file appropriately.
Do I have to fill out a tax form?
Yes, if you wish to receive $600+ in rewards from instaGC in a given year (January 1 - December 31); in this case, the law requires us to ensure that your name, address, and SSN are valid and on file. If you do not wish to provide your SSN, you cannot redeem more than $600 in rewards in a given year; however, you are free to use the site, earn as much as you wish, and (as desired) hold onto your points and redeem them in a subsequent year.
Tax forms typically take 0-48 hours to be reviewed. Once approved, you will be sent an Inbox message and can then redeem your points. If denied, you will be told why and given a chance to re-submit your information for review.
After the end of each year, a 1099-MISC form will be mailed to those who have redeemed $600+ in rewards. This form is mailed by February 1st and will indicate the total that you received from instaGC for the calendar year. Regardless of whether you are personally liable for paying taxes, we suggest that you consult a tax professional for any appropriate advice regarding taxes associated with your instaGC earnings.
Why are gift / prepaid cards taxable?
Gift cards and prepaid cards are taxable because the IRS legally regards them as such. Whether or not you agree, it's the law.
- "Cash or cash equivalent items provided by the employer are never excludable from income. Gift certificates that are redeemable for general merchandise or have a cash equivalent value are not de minimis benefits and are taxable." - (source www.irs.gov).
- "Cash equivalent means readily convertible to cash, for example, a voucher for merchandise, a savings bond, or a gift certificate." - (source www.irs.gov).
Why is Bitcoin taxable?
Bitcoin is taxable because the IRS legally regards them as such. Whether or not you agree, it's the law.
- "Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099." - (source www.irs.gov).
Is PayPal included on a 1099-MISC form from instaGC?
No, PayPal redemptions are not counted towards tax amounts that instaGC reports to the IRS as PayPal does their own tax reporting.
Do I have to pay taxes?
According to the IRS, even if you do not receive a 1099-MISC form because your earnings fall below the $600 taxable limit, any amount that is earned must still be reported. Whether you actually have to actually pay taxes on what you report will depend on your specific situation.
- "Taxpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code." - (source www.irs.gov)
- "It is a common misconception that if a taxpayer does not receive a Form 1099-MISC or if the income is under $600 per payer, the income is not taxable. There is no minimum amount that a taxpayer may exclude from gross income." - (source www.irs.gov)
- "All income earned through the taxpayer’s business, as an independent contractor or from informal side jobs is self-employment income, which is fully taxable and must be reported on Form 1040." - (source www.irs.gov)
More information regarding the 1099-MISC form can be found on www.irs.gov.