Author Topic: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig  (Read 533790 times)

hgjjgkj

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2050 on: January 30, 2018, 12:23:38 PM »
Anyone ever got an email from the new place saying a AU failed to post? I know I added them on time. Seems odd and wonder what it means

CanuckExpat

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2051 on: January 30, 2018, 12:51:02 PM »
The 1099 is mailed? I know Sol was being sarcastic, but I really wouldn't even have thought to look for it there.

Yet another reason to use a travelling mailbox like service for selling Tradelines. You'll get an email notification when the 1099 shows up, and you can have mailbox company scan the 1099 so that it becomes electronic.

So the tradeline company (or whoever handles their payroll) is almost certainly generating the 1099 electronically, then they print and mail a physical copy, which I have a third party mailbox service receive, open, and scan, so that I can have an electronic copy again... there must be a way to cut out the middle man..

In other news, the old recommendation sends you the 1099 electronically...
« Last Edit: January 30, 2018, 01:09:57 PM by CanuckExpat »

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2052 on: January 30, 2018, 12:51:59 PM »
Thanks sol.  I missed your wit.  :)

The other company emails it so I assumed....  Ya know, what happens when you do that.

I received my 1099 by US Mail yesterday.

I poked around on the portal and couldn't find it there, so I think you'll have to use the paper copy.

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2053 on: January 30, 2018, 12:56:17 PM »
Anyone ever got an email from the new place saying a AU failed to post? I know I added them on time. Seems odd and wonder what it means

No, but it means that your CL did not show up on the AU's credit report.

Why?  Well, there was a mistake somewhere.  Possible reasons off the top of my head:

1.  You misspelled their name, SSN, DOB, or address such that the credit bureaus did not match it up to the AU's credit report.  Credit bureaus can handle small differences, but large differences or one digit off on SSN or DOB are problematic.

2.  You added them to the wrong card, and that card doesn't report AUs (never heard of this, but it's possible) or the card is an AMEX which doesn't report AU opening dates correctly.

3.  You didn't have an outstanding balance on the card when it reported to the credit bureau, so they didn't report the AU.

4.  The credit card company screwed up somehow.

5.  The credit bureau company screwed up somehow

6.  The AU company screwed up somehow.

BikeFanatic

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2054 on: January 30, 2018, 01:04:12 PM »
I have had non posting for a Citibank card, sometimes they fail to post correctly.

charuhans

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2055 on: January 30, 2018, 05:39:43 PM »
I have a couple which did not post. The company loaded the latest Credit Report of the AU for me to view so that I can verify that it didn't post. One was strange, my address posted on the AU's credit report but the card credit line didn't post.

meatgrinder

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2056 on: January 30, 2018, 06:03:45 PM »
I have had non posting for a Citibank card, sometimes they fail to post correctly.

Citi doesn't request the AU's SSN when adding so I assume they would be more likely to post incorrectly.

DavidAnnArbor

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2057 on: January 30, 2018, 08:34:13 PM »
I have had non posting for a Citibank card, sometimes they fail to post correctly.

Citi doesn't request the AU's SSN when adding so I assume they would be more likely to post incorrectly.

For Citi you're much better off calling in to add the A.U. so that the social security is added. Doing it online in which the social security is not required could be problematic and cause the AU new tradeline not to post to the credit report.

.22guy

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2058 on: January 30, 2018, 08:41:40 PM »
I think I'll be bowing out of this.  I've made a few bucks, but I can't shake the feeling that both my Barclay cards are going to get shutdown if I don't quit.  Plus the new company kinda sucks to deal with.  I'll see if I can get my last two sales commissions out of them and then I'm out.

That stuff and the poster above talking about menacing communications from a rental car company from something an AU did....

Good luck all......

Padonak

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2059 on: January 30, 2018, 09:33:10 PM »
I have had non posting for a Citibank card, sometimes they fail to post correctly.

Citi doesn't request the AU's SSN when adding so I assume they would be more likely to post incorrectly.

For Citi you're much better off calling in to add the A.U. so that the social security is added. Doing it online in which the social security is not required could be problematic and cause the AU new tradeline not to post to the credit report.

I always call, repeat all the details and make sure they got them correctly. Still, at least two AUs didn't post properly and I didn't get paid. Dealing with Citi is a pain in the ass.

boarder42

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2060 on: January 31, 2018, 06:23:22 AM »
I think I'll be bowing out of this.  I've made a few bucks, but I can't shake the feeling that both my Barclay cards are going to get shutdown if I don't quit.  Plus the new company kinda sucks to deal with.  I'll see if I can get my last two sales commissions out of them and then I'm out.

That stuff and the poster above talking about menacing communications from a rental car company from something an AU did....

Good luck all......

yes that is my biggest gripe too.  the clearly dont have a shortage of cards to put users on or their customer care for us would be much higher its quite dissappointing.

CanuckExpat

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2061 on: January 31, 2018, 06:49:40 AM »
Dealing with Citi is a pain in the ass.

This is the conclusion I reached. We no longer have any Citi cards listed for sale, mainly for unrelated reasons, but not having to deal with them is a major plus.

sol

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2062 on: January 31, 2018, 02:35:36 PM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

PizzaSteve

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2063 on: January 31, 2018, 03:22:10 PM »
I hope everyone is doing well.  A quick question, as I scanned the thread but didnt see all 42 pages and see whether the issues below have been discussed.  I know it is a legal practice but one web site i visited on the topic posted the following quote.  Are there thread pages where this is discussed?

 The problem with tradeline renting from strangers is that if you partake in the practice you could arguably be guilty of committing bank fraud because you are knowingly misrepresenting your credit history. Additionally, you could also potentially be guilty of mail fraud if you used the U.S. postal service to facilitate the tradeline renting or wire fraud if you used the telephone or email.

I think this is saying that the `renters' may be at risk.  Are the loaners free to do as they wish? I am assuming yes, because you are only adding the authorized user (perfectly fine) and the credit scoring system is the one 'interpreting that as good credit', which is not the loaners doing....correct?
« Last Edit: January 31, 2018, 03:25:22 PM by PizzaSteve »

grantmeaname

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2064 on: January 31, 2018, 03:35:28 PM »
Isn't this unethical?

I guess that depends on you.  When you add an authorized user, it usually asks what your relationship to the person is, and you choose: Spouse, or Other (some CCs have "Spouse, Child, Other" and similar options..., but there's always an "Other" choice from what I've seen).  I, obviously, choose other. 

Adding them, or removing them, doesn't require lying, or doing anything illegal.  You add someone online, and then call to remove them.  I actually did this the other day, I called and said "I have two authorized users on my account I'd like to remove."  The customer service lady said no problem, had me verify their names, she confirmed they were removed, I said thanks, have a good day, that was it.

It does potentially violate the credit card company's terms of service, which means they (as a recourse for that violation) can shut down your card. Okay.  I obviously don't have a problem with it.

Our credit card system in the U.S. is unique. The credit card companies make billions each year on people paying interest.  I'm not too worried about them.

One more perspective--as Meadow Lark said in her journal when someone asked about the ethical implications:
"I don't see it as fraud.  It's not illegal. I'm not saying the AU is my kid or my husband - there is no lying.  There are a lot of different ethical frameworks people have.  Within my framework, this is ethical.  It's fine if we disagree.  I believe there is nothing wrong with helping other people improve their credit.  I believe there is nothing wrong with profiting from a loop hole in a financial system that was designed to foster increased income inequality.  I could go on and on, but I don't want to bore you."

If you feel it's unethical, that's fine.  It's definitely not worth doing anything you feel is unethical simply for money.  Steer clear, in that case. :)

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2065 on: January 31, 2018, 04:15:15 PM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

Possibly.  If you read the last sentence of the instructions for box 7 on Form 1099-MISC, it says you can, under certain criteria, report the income as other income on line 21 of Form 1040.

It is up to you to determine if your facts and circumstances meet those criteria.

DavidAnnArbor

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2066 on: January 31, 2018, 08:04:15 PM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

Possibly.  If you read the last sentence of the instructions for box 7 on Form 1099-MISC, it says you can, under certain criteria, report the income as other income on line 21 of Form 1040.

It is up to you to determine if your facts and circumstances meet those criteria.

I'm not sure what the exact dollar number is but I think if you make less than $400 you don't have to file a schedule c.

tj

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2067 on: January 31, 2018, 10:00:44 PM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

Earn $599 or less and hope they don't send a 1099?

https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return
« Last Edit: January 31, 2018, 10:03:04 PM by tj »

Joel

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2068 on: January 31, 2018, 10:01:40 PM »
Did anyone who received less than $600 in sales receive a 1099?

I received $225 and haven't yet received a 1099, but I moved during the year and did not update my address on file with the company as I quit selling tradelines in October after 6 months of no sales.
« Last Edit: January 31, 2018, 11:19:50 PM by Joel »

arebelspy

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2069 on: February 01, 2018, 12:25:33 AM »
I can confirm anyone who received under $600 in income was not issued a 1099.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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grantmeaname

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2070 on: February 01, 2018, 12:56:08 AM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

Earn $599 or less and hope they don't send a 1099?

https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return

That’s called “tax evasion” and it’s a crime.

arebelspy

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2071 on: February 01, 2018, 01:25:19 AM »
Right, you still need to declare the income, I was just stating that you will not receive a 1099 if the income was under $600. It's up to you to report the amount of income (easy if it was all post mid-March when the portal was activated, otherwise you'll need to look at your bank statements).
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
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merula

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2072 on: February 01, 2018, 06:56:52 AM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

I put it under Line 21 last year and put the description as "[Old Company] Consulting". I figured Line 21 made sense as "temporary", and for such a small amount ($400) it seemed reasonable.

I didn't get any sales with the New Company, but I did have a sale paid in January with the Old Company and got an emailed 1099 for $125. I'm planning to do Line 21 again this year.

missundecided

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2073 on: February 01, 2018, 07:16:46 AM »
If I had a sale in Oct but didn't get paid until Jan, is that 2017 or 2018 income?

frugalnacho

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2074 on: February 01, 2018, 08:06:16 AM »
Right, you still need to declare the income, I was just stating that you will not receive a 1099 if the income was under $600. It's up to you to report the amount of income (easy if it was all post mid-March when the portal was activated, otherwise you'll need to look at your bank statements).

Legally and ethically you are required to report the income. But just for clarification, no 1099 means it was not reported to the IRS and the only way the IRS would know is if you self reported the income?  Or has it been reported to the IRS?

arebelspy

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2075 on: February 01, 2018, 08:08:09 AM »
No 1099 = nothing reported, AFAIK.

As you said though, this remains the case:
Legally and ethically you are required to report the income.
We are two former teachers who accumulated a bunch of real estate, retired at 29, and now travel the world full time with two kids.
If you want to know more about me, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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brooklynguy

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2076 on: February 01, 2018, 08:40:58 AM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

Possibly.  If you read the last sentence of the instructions for box 7 on Form 1099-MISC, it says you can, under certain criteria, report the income as other income on line 21 of Form 1040.

It is up to you to determine if your facts and circumstances meet those criteria.

This post in the "Small Business and Misc. Income Best Practices" thread identifies helpful guidance for making that determination.

* * * * *

Separately, I want to note that I just received an add from the new company (my first in many months) and the instructions in the portal said not to put my own phone number in that field in the authorized user request but to instead "just make one up" (this was for a Capital One card).  I found it disconcerting that the company was instructing me to lie (I believe this is the first time they have done so, in my case).  I disregarded this instruction and put my own phone number (which probably increases the chances that my credit card account will be shut down; presumably mitigating that risk is the reason for the company's instruction), but I would rather run that risk than make a misrepresentation in my authorized user application.

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2077 on: February 01, 2018, 09:07:25 AM »
If I had a sale in Oct but didn't get paid until Jan, is that 2017 or 2018 income?

2018 income.

robartsd

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2078 on: February 01, 2018, 04:28:15 PM »
Instructions for schedule SE indicate that you don't have to pay self employment tax if you made less than $400 (net). With less than $400 and no 1099, I'd be inclined to say it is safe to report as "Other Income" on 1040 line 21. If your recieved a 1099 and want to report net income less than that you'll probably want to file schedule C to show your expenses (still no need for schedule SE if under $400 net income).

If you net $400 or more in a tax year from all your side hussle activities combined, you'll probably want to take a deeper look at the tax laws. You could reasonably argue that a signficant part of TL income is business profits not earned income and there are many ways to structure a business.

Car Jack

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2079 on: February 02, 2018, 05:46:01 AM »
As a data point, I received a 1099 from Citi for $400 from the checking account bonus I received. 

flashflooder

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2080 on: February 02, 2018, 06:57:21 AM »
As a data point, I received a 1099 from Citi for $400 from the checking account bonus I received.

The threshold for issuing a 1099-INT is lower than 1099-MISC

chuckster

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2081 on: February 02, 2018, 06:45:19 PM »
Following

Padonak

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2082 on: February 02, 2018, 08:13:50 PM »
How do you guys add tradelines for barclaycard? I did it online a couple of times (there is no field to enter SSN) and the tradelines posted. Is it ok to add them online instead of calling barclays even though you don't add SSN?

katsiki

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2083 on: February 02, 2018, 09:20:09 PM »
How do you guys add tradelines for barclaycard? I did it online a couple of times (there is no field to enter SSN) and the tradelines posted. Is it ok to add them online instead of calling barclays even though you don't add SSN?

I always do it online for Barclays.  No issues after dozens of adds.

tj

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2084 on: February 03, 2018, 01:59:20 PM »
It's tax time.  Is everyone planning to file a schedule C (business profit and loss) and a schedule SE (self employment taxes) for all of their tradeline sales?

Is there any way to avoid doing so?  Seems like a giant pain for everyone, for such a tiny amount of money.

Earn $599 or less and hope they don't send a 1099?

https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return

That’s called “tax evasion” and it’s a crime.

Sure, just like everyone evades tax when they fail to go through all their online purchases for the year and check which ones might be subject to "use tax" thanks to a lack of sales tax being collected by the merchant.

If there's no 1099, you're on the honor system and when you are on the honor system, it obviously becomes drastically easier to bypass Schedules C and SE.

grantmeaname

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2085 on: February 03, 2018, 02:34:13 PM »
It’s still tax evasion even if other people speed on the highway.

grantmeaname

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2086 on: February 03, 2018, 02:49:21 PM »
Or to address your central point more directly: yes, that is also tax evasion.

tj

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2087 on: February 03, 2018, 04:16:18 PM »
Or to address your central point more directly: yes, that is also tax evasion.

....did I say it wasn't? I in fact said it was. Point being, everybody evades taxes. Except those who don't.

The choice to speed on a highway or not you mentioned is indeed a great example of another illegal activity that many, but not all, partake in.

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2088 on: February 03, 2018, 11:26:38 PM »
I made $500 from 3 AUs added in 2017.  I am waiting for a 1099 form. I could have had two more adds in 2017.

I screwed up one opportunity with PNC when I could not remember my special telephone code when talking with them- that got me handed off to some other CSR who asked me a bunch of questions and then told me I would have to take the AU in person to a PNC bank to add them. 

Later for another opportunity to add an AU, I had not noticed that my PNC card had expired and I had not received a new one.  PCN told me that I could not add an AU until I had received a new card.  They claim they had sent me a new card before but it had come back in the mail as undeliverable.  So I had to pass up adding AU and got them to send me a new card

I just recently added an AU to PNC, not without some difficulties.  I did it online on a Saturday, and it would not show I have an AU listed online.  There was only a message in the PNC online message area, that my request to add AU had been submitted and a card would be sent in 7-10 days.  I called PNC a few days later and they confirmed the add, but it still did not show online.  Then I got the AU card in the mail after a couple of days. Then got two letters from PNC, one saying AU was added, welcome, blah blah and another letter saying AU was removed at my request (which I did not request).  So I called PNC again to confirm that AU was added and asked about the conflicting letters.  They said the AU removal letter was sent by mistake.  Not sure if I got the AU added by the deadline, but it was real close.  Will have to wait and see if it posted for the AU.

I am feeling that the PNC card is jinxed.  But it has a $25K limit, so it is  high paying card for me.  Just added a new Barclays card that finally was 2 years old. 

I am happy with the extra money and thanks to Arebelspy for provding me with opportunity and knowledge to partake in this activity.  I will still have to figure out the tax reporting.  I think I reached the SS income cap last year with my regular salary, so I may not need to pay self-employment tax.  Will probably just report income as misc income. 


arebelspy

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2089 on: February 03, 2018, 11:28:36 PM »
I made $500 from 3 AUs added in 2017.  I am waiting for a 1099 form. I could have had two more adds in 2017.

If you made less than $600, you will not get a 1099. You will have to self-report it on your taxes.

Bummer about the two weird PNC issues--hopefully that's all fixed now. :)
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DavidAnnArbor

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2090 on: February 04, 2018, 12:02:33 PM »
I got a PNC card a year ago hoping that after it aged it would be a good card for adding AU's. Thanks for posting the challenges you faced with that.

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2091 on: February 05, 2018, 07:44:34 AM »
I found this thread from a link on another personal finance blog a few days ago. Lots of info on here. It sounds like a nice side gig! I've worked hard to keep a clean credit profile and stay organized with the credit card usage. Looking forward to doing all the research and getting started.

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2092 on: February 05, 2018, 11:18:43 AM »
all those who are filling out schedule C's should be opening SEP IRA's to defer 20% of the taxes. 

and in 2018 we'll all be able to get a 20% tax break on top of that due to the new tax cuts.

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2093 on: February 05, 2018, 07:07:12 PM »
all those who are filling out schedule C's should be opening SEP IRA's to defer 20% of the taxes. 

and in 2018 we'll all be able to get a 20% tax break on top of that due to the new tax cuts.

Agreed! I recommend a SEP with Schwab, was easy to open and has no minimums or fees. I just sent off my 2017 contribution on Saturday.

Padonak

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2094 on: February 05, 2018, 07:33:10 PM »
all those who are filling out schedule C's should be opening SEP IRA's to defer 20% of the taxes. 

and in 2018 we'll all be able to get a 20% tax break on top of that due to the new tax cuts.

Agreed! I recommend a SEP with Schwab, was easy to open and has no minimums or fees. I just sent off my 2017 contribution on Saturday.

Does it work if you have a job and earned income in addition to income from tradelines? Also, if you already contribute to 401K and ROTH IRA?

tj

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2095 on: February 05, 2018, 09:50:13 PM »
all those who are filling out schedule C's should be opening SEP IRA's to defer 20% of the taxes. 

and in 2018 we'll all be able to get a 20% tax break on top of that due to the new tax cuts.

Agreed! I recommend a SEP with Schwab, was easy to open and has no minimums or fees. I just sent off my 2017 contribution on Saturday.

Does it work if you have a job and earned income in addition to income from tradelines? Also, if you already contribute to 401K and ROTH IRA?

SEP is considered from employer portion, so yes, assuming you haven't hit the limit for all employer contributions which is something ridiculous like $50k..

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2096 on: February 06, 2018, 08:33:18 AM »
SEP is considered from employer portion, so yes, assuming you haven't hit the limit for all employer contributions which is something ridiculous like $50k..
Actually the 54K limit is per-employer.  So if you've got a very generous employer and a big side business, you could get $108K, as an example.

kpd905

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2097 on: February 06, 2018, 10:35:43 AM »
all those who are filling out schedule C's should be opening SEP IRA's to defer 20% of the taxes. 

and in 2018 we'll all be able to get a 20% tax break on top of that due to the new tax cuts.

I asked this in a thread in the Tax forum, but could you open a Simple IRA instead?  Those have a $12,500 limit that I think is separate from tIRA and Roth Iras.  If so, I could just throw all of my tradeline income into one instead of just 20% of it into my SEP.  I admit I don't know much about Simple IRAs, it seems there are some weird contributions rules that you need to choose from.

Here is the link I was looking at: https://www.irs.gov/retirement-plans/simple-ira-tips-for-the-sole-proprietor
« Last Edit: February 06, 2018, 10:38:25 AM by kpd905 »

tj

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2098 on: February 06, 2018, 05:12:28 PM »
all those who are filling out schedule C's should be opening SEP IRA's to defer 20% of the taxes. 

and in 2018 we'll all be able to get a 20% tax break on top of that due to the new tax cuts.

I asked this in a thread in the Tax forum, but could you open a Simple IRA instead?  Those have a $12,500 limit that I think is separate from tIRA and Roth Iras.  If so, I could just throw all of my tradeline income into one instead of just 20% of it into my SEP.  I admit I don't know much about Simple IRAs, it seems there are some weird contributions rules that you need to choose from.

Here is the link I was looking at: https://www.irs.gov/retirement-plans/simple-ira-tips-for-the-sole-proprietor

As long as you don't have a 401(k). They are subject to the same limit according to a tax expert that posted here.

kpd905

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #2099 on: February 06, 2018, 06:23:12 PM »
As long as you don't have a 401(k). They are subject to the same limit according to a tax expert that posted here.

I see, I knew there had to be a catch.  Guess I'll stick with my SEP then.