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TAX FILING

I took a look and haven’t seen much info on this topic, and I am trying to find out what I should expect from OhmConnect when all my tax documents start showing up in the mail.

Is the 1099 amount calculated on every single cash-out to paypal, or am I only taxed on bonuses (referrals). I’m especially concerned on the cash-outs from points issues as free after rebate for smart devices…all these (esp. the thermostats) really adds up. Does the system separate rebate points from regular? As far as I understand, rebates aren’t something to be taxed on - and I already paid for sales tax on them. Seems the same would be true of money earned from saving energy, which is an energy rebate (?), not income/bonuses…but I really don’t know.

I know the amount of people who have to fill out W-9s is small pool, l but I’m wondering if anyone had to file for 2016 and could tell me what to expect.

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Comments

  • UkiwiSUkiwiS San DiegoPosts: 1,595Member, Moderator

    Good questions @Heather R. Weather

  • Im wondering if someone from OC would know or can inquire. I am concerned the system is going to just send a blanket amount of all cashouts and that should not happen for rebates. Really want to confirm before the year's end and its too late. Can't exactly fight whats reported to the IRS. @Claudia @Kate from OhmConnect ?

  • Kate from OhmConnectKate from OhmConnect Posts: 1,049Administrator

    HI @Heather R. Weather - filling out the w9 allows both of us and you to send you a tax filing in April. It doesn't have any impact on what we send you.

  • UkiwiSUkiwiS San DiegoPosts: 1,595Member, Moderator

    @Kate from OhmConnect said:
    HI @Heather R. Weather - filling out the w9 allows both of us and you to send you a tax filing in April. It doesn't have any impact on what we send you.

    Kate, I think she's asking what amount will be on the form when it is mailed out. Will it be the total amount paid out for everything, including rebates, or will it be just the amount paid for energy savings.

  • Kate from OhmConnectKate from OhmConnect Posts: 1,049Administrator

    @UkiwiS it will not be mailed until April, so it will be mailed with the total earned amount by that time. Yes-- it will be the total amount earned for everything, though I dont believe rebates.

  • WaterGuyWaterGuy Posts: 414Member, Moderator

    @Kate from OhmConnect said:
    @UkiwiS it will not be mailed until April, so it will be mailed with the total earned amount by that time. Yes-- it will be the total amount earned for everything, though I dont believe rebates.

    @Kate from OhmConnect, do you mind double-checking on the rebate question? I know that rebates I've received through public incentive programs offered by folks like SDG&E and our local water authority have been taxed when they're over a certain amount. There's no way my device rebates have together crossed the $600 threshold, so I think the key question for me is whether device rebate points and the points awarded based on OhmHours/referrals are lumped, given that they come from different sources but are ultimately awarded through OhmConnect. It certainly seems to me that folks who received smart thermostats got to the $600 level faster than those who didn't, based on comments I've read and my own experience, which would suggest to me that OC may be lumping all awards together.

  • Kate from OhmConnectKate from OhmConnect Posts: 1,049Administrator

    I'll investigate.

  • Heather R. WeatherHeather R. Weather Posts: 125Member
    edited November 2017

    thanks for looking into it @Kate from OhmConnect ! it wont be mailed till April, though? I thought the postmark for tax documents is Jan. 31 and the deadline to file taxes is April 15 - are you saying I would need to wait till the very end of filing because I wouldnt get my 1099 from Ohmconnect till then? I try to do my taxes as soon as I can, usually early Feb.

  • Fyi @Kate from OhmConnect the 1099's need to be mailed or emailed to us by January 31st of 2018...you can triple check but I'm almost 100% sure you business is required to follow the same rules as others
  • Kate from OhmConnectKate from OhmConnect Posts: 1,049Administrator

    HI all:

    Rebates WILL be part of the taxed income.

    @Kimberly McDermott we are aware of the mail date and should be better this year.

  • Kimberly McDermottKimberly McDermott Posts: 81Member
    edited November 2017
    Sorry Kate I only saw your comment that said it would be mailed in April...no worries
  • Heather R. WeatherHeather R. Weather Posts: 125Member
    edited November 2017

    Man that sucks. there should be a disclaimer that free smart devices are not actually free at all and treated like income :( i have never heard of this being done. If im reading right... the 1099 is taxed at like 40% ...Combined with already paying sales tax, you are really paying nearly 50% of the cost of the smart devices "free after rebate." So for being excited I qualified for the smart thermostat, set of smart plugs and a single smart plug... Im going to owe over $70 in taxes next year, that I didnt expect. Maybe I'm off a bit but I doubt it. I guess I should be frustrated with our government taxing us left and right...encourage energy efficiency and helping the greater good - 'but we sure are going to tax you as much as we can!' Im sad. well, hopefully a lot of people see this so they are prepared. im not cashing out anymore, thats for sure. and staying within the $600 for the future year. These are extra expenses I didn't prepare for and are making me fear tax filing.

  • also, i am not getting any alerts on posts for this - i thought hitting the star notified me?

  • SD ChipSD Chip Posts: 146Member

    I hear ya @Heather R. Weather. The "Free" car my wife won on a game show cost me about $5,000. The 1099 actually was added income taxed at the marginal rate, which may vary depending upon your income.

  • Kate from OhmConnectKate from OhmConnect Posts: 1,049Administrator

    @Heather R. Weather said:
    also, i am not getting any alerts on posts for this - i thought hitting the star notified me?

    hitting the start does not notify you. Check your settings for this forum in general.

  • Heather R. WeatherHeather R. Weather Posts: 125Member

    @Kate from OhmConnect said:

    @Heather R. Weather said:
    also, i am not getting any alerts on posts for this - i thought hitting the star notified me?

    hitting the start does not notify you. Check your settings for this forum in general.

    I have everything checked and I am still not getting any email notifications for any thread. there seems to be a bug.

  • Kate from OhmConnectKate from OhmConnect Posts: 1,049Administrator

    @Heather R. Weather is there any chance your email is filtering them?

  • @Kate from OhmConnect said:
    @Heather R. Weather is there any chance your email is filtering them?

    I dont think so. I use gmail and it is usually pretty good about it. I used to get emails with responses so I know it was once possible. Just ran a search of this thread title and nothing shows up in my email.

  • soniapineda1996soniapineda1996 Posts: 4Member
    What does this mean if we get the 1099 form?
    That we have to pay taxes if we hit 600?
  • UkiwiSUkiwiS San DiegoPosts: 1,595Member, Moderator

    @soniapineda1996

    YES, you receive a 1099 and it's treated as taxable income on your tax form

    https://faq.ohmconnect.com/getting-rewarded/how-do-i-use-my-points

  • soniapineda1996soniapineda1996 Posts: 4Member
    And also everything I’ve received through ohm is referrals too those count too as being taxed?
  • CKWMCKWM Fremont, CAPosts: 235Member
    If you earned money and you're getting a W-9, then it's taxed - regardless of method.
  • Heather R. WeatherHeather R. Weather Posts: 125Member

    @soniapineda1996 said:
    And also everything I’ve received through ohm is referrals too those count too as being taxed?

    It applies for everything. When I chose to get the ecobee smart thermostat for free after rebate, I wasnt aware I would be taxed on the rebate amount, which was over $100 just for that item. Referrals, all the free after rebate smart devices (smart plugs, therm), regular ohm hours...it is all the same pot of money taxed together. Last year I was taxed on over $1,000 between those 3 things. I just triggered needing to submit a 1099 for this year for cashing out more than $600... so it goes. It's impressive to be earning this much from the program. As long as the streaks bonus exist, there is lots of money to be made even as a low energy user.

  • Heather R. WeatherHeather R. Weather Posts: 125Member

    im curious... if you stayed under $600 for cash payouts, then chose to receive gift cards for all future - would you bypass needing to pay taxes on it? Or I guess even if you exceeded $600, could you limit the amount on the 1099 to only around $600 and get gift cards for rest of year? or are gift cards also reported the same as cash?

  • cwiedcwied San MateoPosts: 131Member

    You have to pay taxes on anything you receive including the Mega prizes. You'll get a 1099 reporting all of them.

    Note that even if you're under $600, the income is taxable. It's just that OhmConnect doesn't have to report it. If you get audited, don't mention that you received less than $600 from OhmConnect!

  • Heather R. WeatherHeather R. Weather Posts: 125Member

    @cwohmcon said:
    You have to pay taxes on anything you receive including the Mega prizes. You'll get a 1099 reporting all of them.

    Note that even if you're under $600, the income is taxable. It's just that OhmConnect doesn't have to report it. If you get audited, don't mention that you received less than $600 from OhmConnect!

    yeah for sure... its sort of like that question on whether you bought anything online out of state and weren't taxed ;) My question is if gift cards are taxable income too - does that get added to the reported total if exceeding $600 between cash payouts and gift cards?

  • UkiwiSUkiwiS San DiegoPosts: 1,595Member, Moderator
    edited August 2018
    Yes. Gift cards are included in the taxable income total.
  • Heather R. WeatherHeather R. Weather Posts: 125Member

    @UkiwiS said:
    Yes. Gift cards are included in the taxable income total.

    ah ok...there is no escaping THE TAXMAN! :)

  • subliminsublimin Posts: 14Member

    Are we taxed on all ohm points received, or only money we actually "cash out"?

  • UkiwiSUkiwiS San DiegoPosts: 1,595Member, Moderator
    edited August 2018

    @sublimin said:
    Are we taxed on all ohm points received, or only money we actually "cash out"?

    You are taxed on the cash you receive, including via gift cards (Amazon and Target), in the calendar year you receive it.

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