Do you just count it as regular income on your tax return or is it a gift or.....?

I think it would count as regular income, but I believe if it's under a certain amount you don't have to claim it....I don't know what that amount is though....that probably wasn't very helpful.

It's regular income. I remember reading an article a while ago that talked about having to report everything that you make or receive from doing scrapbook work to the IRS. That even included the price of the product that you received in lieu of money.

It was my understanding that if you earned more than $500 you had to file. At $500 Meredith would issue a 1099 to you.

Well, I am taking tax classes right now! So, I think it would count as self-employment income since you are "contracting" with them. And the rule with self-employment income is that if it is under $400/year, you do NOT have to claim it.

eta: and Valerie is right, they would issue you a 1099 and that is the indicator that you would need to claim it.

I know when I was a Stampin' Up Demo, if you made less than a certain amount you didn't have to claim it. I think the indicator was whether or not they sent you a 1099.

It's not counted on your tax return as anything unless it comes with a 1099, which it won't unless you've earned over 1000.00.

Of course, if you are claiming you design as a self-employed businessperson, then you have to claim it as income regardless of the amount.

Thanks ladies.

That's good to know.
I was wondering as well.
But I figured since I hadn't received anything from SBE that I was ok.

I thought the threshold was $600? Anything under $600 is not reportable to the IRS. Maybe self-employment/contacting rules are different?

Threshold for the company to file a 1099 is $600.

but also remember your deductions -- mailing your layout, other supplies used, etc...

good point Kristin!