I received the first 1099 Form from one of the paid blogging companies last Tuesday, indicating I made $ 31,005.00 for 2008. Enclosed here is a shot of the form. Are you shocked?
For some non US bloggers out there that are not aware of what the 1099 Form is all about, here’s a precise description of what it’s all about from about.com:
When working as a freelancer or independent contractor, clients are required to provide you with a 1099 form at the end of the calendar year. The form is required when total compensation exceeds $600 during each tax year. A copy of the form is submitted to the IRS to help track miscellaneous income. Although there are variations of the 1099 to show interest and other types of payments, Form 1099-MISC is used to report payments to independent contractors.
Don’t raise your eyebrows just yet, because when my husband came home with the mail yesterday, and it was already 8:00 p.m. I almost fell off my chair when I saw the figures. It was at that moment when I wished I was not that lazy to check the mailbox, so that I would have been able to phone the company right on the dot.
No, I did not make that much. I wish!!!! I was sweating profusely, because if I had to battle for that amount to be corrected and it is not settled before tax season ends, that will create trouble for us with the IRS. With my husband’s income alone, we are already at a high tax bracket, which is why I’m better off staying home specially that we have no children and no mortgage (thank God) that would at least help lessen the tax burden.
So what was my immediate action? I had to get to work and find out who this paid blogging company is. Yes folks, the name of the company indicated on the 1099 form was such an alien to me, as it does not resemble any of the companies I’m affiliated with. First off, I dialed the phone number on the form. It is based in the Big Apple. Of course, as it was already beyond normal hours of operation, I got a voice mail of an employee not identifying the name of the company, only her first name. The next stop was googling the name of the firm. I got a match but I had to dig deep to find out. After some more huffing and puffing and my heart racing, I got it! I won’t identify the company here but if you’re interested to know I can email it to you.
I debated whether to send an email through the website or wait it out the following the day and make the call. I went offline for a good two hours and went back again. The paranoid me, I was thinking of the worst scenario. That they’d deny me the correction, and that they just want to stick it on me. I couldn’t resist sending an email through their site requesting for the correction of the figures. Immediately when I woke up Wednesday morning, I made the call. I spoke with a woman and informed her about the issue. She tried to verify it on the system and told me I should fax the document. So, off I did right at that moment. After a few minutes, I called again to ensure she got what I faxed her. I was told that the erroneous entry will be corrected and that they will send me another form. I wanted to be assured that if ever this information was already sent to the IRS, they have to also undo that. I don’t know how the system works, so I just wanted to verbalize it. As everyone probably is aware, no one would want to be under the scrutiny of the IRS.
I wonder how many bloggers would get erroneous forms like this from the same company. It’s telling me that someone is not doing their job properly, and being that this is a very sensitive form bearing sensitive information, the person assigned to do this at tax time should be more thorough and more responsible. That person could have also inscribed a different Social Security Number on mine. And oh, she didn’t offer any apologies when I spoke to her. Good thing, the response on my email did.
One down, several more to go. I wonder what scenario will the next 1099 form to hit my mailbox bring.
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oh. my. gawsh. I would have been floored to receive such a tax document too! Glad you’re halfway to resolving it.. keep on it, don’t let up until you’ve got the corrected form, and keep a record of your communication with them regarding this mistake!
Hi Juliana!
I can relate to what you felt when you received the 1099. I got an erroneous one too. I am telling you my jaw dropped when I saw the figure reflected on other income. It got me really upset and wanting to call them but t’was already midnight in NY. I also googled the name coz I was so confused why I got 1099 from them when I don’t have an account with them. I opened all the paid blogging I am affiliated with and then saw at the bottom of the page __ the name of the company. I sent an email to them and early in the morning I called and was able to talked to the one who handles ___. He apologized about it and said about files being corrupted. Yesterday, I believe they sent emails to those who received erroneous 1099.
anong company sis? buti na lang na sort out mo. buti na lang kami overseas (not US country) don’t have tax from blogging.
There are really mistakes if you did not consult quick you might end up big tax. Good for you. Thanks for telling the info and if you can email me the website of the one who send you the 1099 I appreciate it. Here is my email: gengen_28atyahoodotcom……
what??? as in what??? naku pooooo! nakakatakot naman! i won’t blame you sis if u were sweating profusely! kahit ako siguro, i would cry! lol
di nga, i am so interested to know the company. can you tell me? thanks!
i can’t wait for the next post about this. i.e., whether or not it’s been solved!
Sis,at the first paragraph of your post I was like..wow! she made that much..haha! and then..oh no..that’s gonna be a big problem.
Good thing you were able to fix it na and hoping there would be no more horror este error in your mailbox.
@ Rocks
I hope so too. grabe nakaka-shock.
@ recel
I will email you. I’m hoping they will right the wrong entry.
@ gengen
indeed, gen. the big tax liability is apparent if they don’t correct the mistake, specially that we are already on a high tax bracket with my husband’s income alone.
@ shiela
oo nga, free ride talaga ang overseas bloggers. I will email you the name of the company.
@ Bless
so I’m not the only one. btw, I deleted the name of the company here on your comment. Grabe nga, how can they foul that up. Crossing my fingers that whatever data they have transmitted to IRS will be corrected too.
@ Lynne
I can only hope they will try and right the wrong they did. thanks for the tip Lynne.
That’s scary kasi we don’t have any proof of earning but the deposits in PayPal. Ano ba yan….
Naku ako eh may allergy attack today. Ewan ko ba kung baket. My nose is sore and eyes are droopy and I’m about to fall asleep here…
Have a great weekend Tuks….
I was wondering they’re sending the form so early. Dealing with the IRS /taxes here in the US is not fun at all. ( Well, if you’re Geithner , then you don’t have to worry, you will just tell them, it was an honest mistake ) .
@ Beth
I was not shocked to receive one this early because we have already started to get tax statements from investment firms. Just have to wait when they send the corrected form.
@ Juliana
yes, it is. I started to think of the worst case scenario that they are just sticking it on me at napili ang name ko.
ay ano ba yan, allergy attack ulit. kaya ako, I take my Zyrtec everyday for good measure.
Really scary when it is served on such short notice.
Oh my! What a scare. Glad to know they´re going to fix it.
I´m out of US and never received a tax form. I can imagine that I would feel just like you, n one wants mess with IRS here too.
Good Weekend!
OMG, I would have been really worried too. When I first saw it I was thinking…Wow, I need to start doing whatever she is doing.
I am glad it is all getting fixed for you. I have not gotten anything like that as of yet so I hope I am safe.
@ Melissa
I didn’t make that much, but I was expecting to get a form from them. iIf you have been doing paid blogging and you made $600 and up in 2008, you will definitely get a 1099 form too. Thanks for your concern Melissa.
@ Mize
Thanks for your concern Mize. I was upset more than scared because I am expecting to get 1099 forms from the different paid blogging companies. I knew someone bungled up and they need to correct it.
@ Yeokeehui
it’s not such a short notice because tax time runs until April 15. It’s just upsetting to see that they are not responsible enough to inscribe the right income for 2008.
whoa! i was gonna congratulate u na sana sis when i first read the amount only to find out later na mali pala. hope everything is ok now.:)
anyways, got something for u here…
http://www.lynnschicspot.com/2009/01/pink-heart-tag-listen-to-what-my-heart.html
Wow, when I saw how much you made blogging I thought maybe I should monetize my blog! Then I read your post and thought, nope, don’t need any extra headaches. That’s great you got it cleared up so quickly though. Good for you!
This is something strange and shocking! What a mess to withstand and combat. Thank God it has been resolved. But for sure, you should ask for their confirmation regarding information that might have passed to IRS by that company.
When I read the first paragraph, I couldn’t believe someone made that much for paid blogging! I bet you wish that was right though! I’m glad that you seem to have gotten it fixed.
Musta ang weekend Tuks? I wonder why I have not received my 1099 from any of the paid blogging sites…hopefully it’ll be here before the end of the month. Di ba they have to send it by Jan. 30?
Anyway, hope you’re having a good weekend.
dropping by!
gagay
elow sis…
meron pa isa.LOL.
http://www.yogiandme.com/2009/01/wishy-wish-wish.html
That was very scary! Will you please email me the name of the company? Thanks in advance.
here’s my email address: panfilonorma@yahoo.com
inggit mode ako nung nakita ko yung values
it turned out na error pala yun and MAJOR error pa. I hope everything’s okay by now 
sensya na po, madalang na ako maka bloghop sa inyo.
No one would wants to be under the scrutiny of the IRS, for sure!
@ PaulsHealthBlog
yes, indeed.
@ Mari
oo nga, di kaya naduling ang nag encode. the numbers are totally out of this world.
it’s ok, I know naman the baby is keeping you busy. TC!
@ poray
expect my email in a bit.
@ Lynn
sure, I’ll grab it too. TY!
@ Juliana
they should. but some companies send it even into 1st week of Feb.
@ Rhonda
and that is just from one company. But there should be someone that made that much. like for example John Chow.
@ Nilz
thanks for the concern Nilz.
@ Karen
thanks for your concern Karen. I hope this will be the only headache and it’s just isolated with this company. If you haven’t monetized your blog, you can certainly try. I may not have made as much as this for one company but I made a decent sum for staying home, and that is with only 3 blogs. If the PR stays (my 3 blogs used to be PR4), the earning potential is awesome.
@ lynn
mali nga haha. sige, I’ll grab it soon. TY!
Hay naku eto at naging busy overhauling the little one’s room. Ngayon ko lang naasikaso yung mga boxes sa closet nya na puro toys pala….grabe. Isang araw yun lang ginawa ko.
Wawa ka naman kasi you had to go out sa lamig. Dito mainit today in the afternoon….
Enjoy the rest of the week…
@ Juliana
grabe yan ha, maghapon! but it must feel good, at least everything is in it’s proper place na.
if only I can head out somewhere warm… for now, I have no choice, andito ang wall street eh.
I would have done the same thing as you did. what I hate about here in America, is that everything is computerized and digitalized…choo-choo, but then they still don’t get it right. Everything is also automated that you don’t get a direct person to talk with and then the worst thing is, it takes so long to rectify the error. One more thing that is appalling in America, is that they’re so quick when it comes to getting your money.
@ bingkee
you are absolutely right, Bingkee. everything is automated hence, everything should be done right but NOT. oh, and yes, your money is their money too. every time you get money, you have to pay uncle sam first.
That is shocking Juliana! What company is that who sent you the erroneous income statement. Now I’m worried I might receive incorrect figures too. How careless those people are. They should be fired. Dyan kasi sa US kahit high school graduate lang hina-hire nila sa trabaho na di naman nila linya. I used to work in bank there in TX and they even hired high school grads to be a bank teller. Grabe, di pwede yan sa Pinas. They only hire college grads major in accounting or banking and finance to work in a a bank in PI.
BTW, hubby and I are here in the Philippines already.
@ Lisa
that’s how they do things here manang. have no choice but embrace it na.