Author Topic: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig  (Read 1648109 times)

MoneyTree

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4700 on: January 19, 2021, 10:38:42 PM »
So some of us got messages from Discover last year that we had to wait to add more authorized users. I had a message that I could not add any more Authorized users until after 12/19/20.

But today, I log into Discover to add my next batch of AUs and now it says that I cannot add anymore until 6/14/21? I haven't added any users to that card in months, so I' not sure why that date was extended for no reason.

Have any of you Discover users run into this? The chat agent told me I had to call their customer protection phone number for help, but I'm hesitant to do so, because if they look further into my account they'll see a ton of past authorized users and might shut me down.

I had that message from Discover and put my card on hold with the TL company until I was able to add more online(3 months). They said I should be able to call in and add without an issue but I decided to play it safe.

Yeah, I'm just going to play it safe and just wait it out, no point in drawing additional scrutiny to that card as it has been a good seller and is easy to add/remove AUs. I'll just put the card on hold with my TL company until June.

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4701 on: January 21, 2021, 09:19:08 AM »
Might be a stretch as I know most here don't sell spots on Amx but after around 50 adds they took away my ability to add online.  This card is by far my best seller so hope to not lose it but if  so it was a good run.

Account still active, no shutdown. Anyone else run into this?

solon

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4702 on: January 21, 2021, 09:22:25 AM »
Might be a stretch as I know most here don't sell spots on Amx but after around 50 adds they took away my ability to add online.  This card is by far my best seller so hope to not lose it but if  so it was a good run.

Account still active, no shutdown. Anyone else run into this?

I thought Amex didn't work because they don't report to the credit agencies (thus no benefit to the AU). How did you get Amex to work?

arebelspy

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4703 on: January 21, 2021, 09:25:13 AM »
Amex does report, it just reports the date the AU was added as the card opening date. So they don't get the longevity or card history, jus the credit limit. Way less of a benefit. But some of the TL companies will take them. Not many, for good reasons.
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harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4704 on: January 21, 2021, 09:29:05 AM »
The companies that do take Amex (credit cards only) take them and sell them to a client along with a card with age... because Amex doesn't report the age of the account.   So a high limit Amex and a card that's been around for some time together have a more positive impact than an older but lower limit card on it's own.

erutio

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4705 on: January 21, 2021, 10:32:24 AM »
Might be a stretch as I know most here don't sell spots on Amx but after around 50 adds they took away my ability to add online.  This card is by far my best seller so hope to not lose it but if  so it was a good run.

Account still active, no shutdown. Anyone else run into this?

Did they send you any sort of notice?  Or did the "Add AU" button just disappear from your online account?

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4706 on: January 21, 2021, 10:37:16 AM »
When I click on add AU I get "We are sorry, you are not able to apply for an Additional Card online."


harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4707 on: January 22, 2021, 06:38:11 AM »
So my tradeline company let me know that a lot of people are having trouble adding Amex AUs online.  So doesn't seem to be just me. 

Seems like the worst they will do to anyone is a financial review which can get you shutdown, but they just want to make sure you can pay your bills.

Always good when the best earning card lives another day.

katsiki

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4708 on: January 22, 2021, 08:18:18 AM »
So my tradeline company let me know that a lot of people are having trouble adding Amex AUs online.  So doesn't seem to be just me. 

Seems like the worst they will do to anyone is a financial review which can get you shutdown, but they just want to make sure you can pay your bills.

Always good when the best earning card lives another day.

Good info - thanks!  I don't sell AU spots on Amex myself.

Not to get too far off topic but wondering if any of you happen to know....  I had an amex card in the early 2000's and closed it at some point.  I got a new amex a couple of years ago.  I recently noticed that it shows "Member since 2000" in their site and emails.  Is that normal?  Based on the way they handle AU's and just common sense, it seems odd.

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4709 on: January 22, 2021, 08:25:54 AM »
My experience on Amex with "Member since" has been pretty random.  Got a new card and it said member since 2020, while my other cards correctly say 01.

Also noticed for some of the AUs I've added Amex pulls the member since date, looking at an AU card right now that says member since 99.  I'm guessing like you that many of the AUs I've added with a member since from the past had or have a gap in membership.


jeromedawg

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4710 on: January 28, 2021, 06:27:17 PM »
Late to the game here but interested. Since 2016, what has significantly changed with all this? It seems like it's harder to get as many AUs as it was prior? For those of you still actively doing this, what are you bringing in per card, on average, and what are some of the risks/caveats you've faced these days?


Zamboni

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4711 on: January 28, 2021, 07:33:20 PM »
ptf

MoneyTree

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4712 on: January 28, 2021, 07:50:03 PM »
I donít think much has changed except the 2 TL companies mentioned here got flooded with cards.

This past year, there was a big spike in demand for tradeline slots, probably because a lot of people were looking to get mortgages and take advantage of super low rates.

The only caveat that I can really think of is that I regularly get calls from collections companies looking for past AUs and junk mail for them too.

Worth it, imo.

Michael in ABQ

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4713 on: January 28, 2021, 08:17:54 PM »
I've only used the old company and starting about a year ago my newer cheaper cards consistently sold both slots every month but it was only $25 or $50. Since my $25 card turned two years old a few months ago, and the commission increased to $125, I haven't sold a single slot. Hoping that changes soon and my second $50 Barclays card will go to $175 in a couple of months when it hits the two-year mark.

goodlivin23

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4714 on: January 29, 2021, 12:22:21 AM »
Hi All,
Quick question - is there anyway to pay your rent by credit card? My landlady typically only takes checks. I know cashiers checks/money orders can't be purchased with a credit card. I buy so very little (yay!) but want to use my cards to have a better chance of increasing my credit limit. I just got 2 new Barclays cards (yay, again) but both limits are only $5k. I saw somewhere on this site where someone explained how you can buy something - similar to a cashiers check - using your credit card.
Thank you!

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4715 on: January 29, 2021, 05:35:00 AM »
There are a few options to use a credit card to pay rent.  Plastiq and radpad? are the two most common.

Iíve made just under $12k since October on TL sales.  Admittedly I have a lot of older ideal cards and Iím taking a risk working with different TL companies (not the ones recommended here).  Best card yields me $450 a spot and my most popular one only $100. Having read this entire thread Iím certainly prepared for a shutdown eventually but have already made enough that it was worth it.  If someone offered you thousands of dollars to close one of your many credit cards and not work with that bank again, I assume youíd be all over it. 

Sales are driven by mortgage activity and car buying so no doubt that helped.

Seeking credit card bonuses is also a nice way to  season the next generation of cards.  Since the fall Iíve added a few that will be nice money makers in 2 years. 
« Last Edit: January 29, 2021, 05:37:28 AM by harrydogyo »

BikeFanatic

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4716 on: January 29, 2021, 08:33:23 AM »
Quote
Might be a stretch as I know most here don't sell spots on Amx but after around 50 adds they took away my ability to add online.  This card is by far my best seller so hope to not lose it but if  so it was a good run.

Account still active, no shutdown. Anyone else run into this?

I have run into that problem, I added about 55 AU to Amex - they may just have a 55 AU limit, or it is a web site issue.
I can still use my card, not shut down.

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4717 on: January 29, 2021, 08:39:09 AM »
Thanks BikeFanatic for the data point.

it used to be up to 99 and then you reset after a year and you could move CL and do adds to another card... but both of my personal Amex cards are restricted with adding online and over the phone.  But the good part is not losing the card itself and no financial review.  Still money to be made with 6% on grocery spend until the AUs come back.

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4718 on: January 29, 2021, 09:59:51 AM »
Hi All,
Quick question - is there anyway to pay your rent by credit card? My landlady typically only takes checks. I know cashiers checks/money orders can't be purchased with a credit card. I buy so very little (yay!) but want to use my cards to have a better chance of increasing my credit limit. I just got 2 new Barclays cards (yay, again) but both limits are only $5k. I saw somewhere on this site where someone explained how you can buy something - similar to a cashiers check - using your credit card.
Thank you!
I also just received 2 Barclay's cards.  Using the online option, I requested a CL increase on one and immediately got it.  I've read that you can bump the Credit Limits (CL) every 6 months without a pull on your credit score.  I set a reminder.

chuckster

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4719 on: January 29, 2021, 10:27:51 AM »
Late to the game here but interested. Since 2016, what has significantly changed with all this? It seems like it's harder to get as many AUs as it was prior? For those of you still actively doing this, what are you bringing in per card, on average, and what are some of the risks/caveats you've faced these days?

I find it's seasonal with New Company. I've got 5 cards with them, and in the latter half of the year, three or four are booked solid ($10K cards, 2-3 years old), while the fifth card--my oldest, highest limit (20 years old, $28K), most expensive sale--only sees a couple of sales per year, sometimes none.

Old Company, I've got three cards in the lowest range ($1k - $10k and 1-3 years old) and they're oversold--I'm using three or four of my "two" spots regularly. They sell new slots a day or two before the old slots are even due to be removed.


Been in since mid-2017, about to hit 100 total sales. Had 25 orders in the last calendar year... five in the first six months, 20 in the last six months. I think 25 might be the most I've had in a year, and they brought in about $3000 total last year. So $120/order average.

 
Don't think I can speak to any risks... haven't had any problems at all. Just easy churn in and out. I don't care about the cards and I'm fine if they get shut down and closed. All I really have to keep an eye on is keeping some ready to add in the future.

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4720 on: January 29, 2021, 12:08:12 PM »
They sell new slots a day or two before the old slots are even due to be removed.

This happens to me as well.  When I asked them about it, they said they are generally OK with me waiting to add the new AU until after the old slot is due to be removed as long as the new AU is added before the closing date on the card.  In all cases like this for me so far, there has always been a day or two window for me to do it that way.

So for example, they'll release a new AU to me on the 20th, old AU is due to come off on the 22nd, and closing date is the 25th.  I just wait, remove the old AU on the 22nd or 23rd, then add the new AU right afterward.  I could wait to add the new AU until the 24th if I wanted to.  But for me it's easiest to do it all in one sitting.

Reddart67

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4721 on: February 04, 2021, 04:33:02 AM »
So my tradeline company let me know that a lot of people are having trouble adding Amex AUs online.  So doesn't seem to be just me. 

Seems like the worst they will do to anyone is a financial review which can get you shutdown, but they just want to make sure you can pay your bills.

Always good when the best earning card lives another day.
Same here. I only have had 22 au so far. I hope itís only a temporary glitch, and not a crackdown on tradeline sellers.

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4722 on: February 04, 2021, 05:19:20 AM »
Quick update for Amex.  I was successful adding over chat and I heard others are successful over the phone. Must just be the website for some... though I know itís working for others.  But glad at least for now itís not appearing to be a crackdown.

Padonak

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4723 on: February 07, 2021, 11:54:56 AM »
Does the old company accept amex? How much do they pay for amex cards? I thought amex didn't report credit card age.

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4724 on: February 07, 2021, 12:04:20 PM »
The companies recommended here donít take Amex (scroll up for a previous answer) and youíre correct they donít report age.  But other TL companies will sell Amex spots often along with an aged card from another bank as buyers  do get the benefit of the CL from Amex.

I get $175 a spot for my $60k Amex credit card but I donít know of any standard offers for them.

freedomfightergal

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4725 on: February 09, 2021, 07:37:37 AM »
I love how this beats the reporting agencies at their own game!!  It has always annoyed me that you sometimes have to pay to obtain data on YOURSELF, and that they hold it over your head.  Also that it often makes zero sense! For years I avoided debt & when it came to getting a mortgage I thought I'd be golden, but it turned out, not having debt was a mark against me, SMH.  So I remember getting a credit card just to boost my credit score & was shocked my score jumped by 50 points.  Since then I've set myself up to have a good score in a backwards way, eg I also took a small loan out when buying a car & paid it to almost zero to get the $1k cash back & to get the credit score boost. 

I recently froze my credit too so that my data supposedly can't be shared with others.  Amazing how once that happened I get so much desperate advertising for cheap loans etc.  Anyways love this trade line selling idea!!



Brezhnev

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4726 on: February 10, 2021, 05:34:29 AM »
Hello, what are the names of companies that accept Amex cards? Between me and my family members we have 10 of these cards. Thank you.

goodlivin23

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4727 on: February 10, 2021, 09:13:35 PM »
So- just tried to sign into my BofA account and was unable to do so. Called in, they said my account has been closed. Apparently, I should be receiving an email about this in 3-5 days. What's up with that? Has this happened to others? Its about 1 1/2 years old and I've only ever had 2 AUs on it at a time. They won't tell me the reason though (I have to wait for the letter). Also, has anyone ever been able to get a company to re-open a card?

BikeFanatic

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4728 on: February 11, 2021, 03:36:27 AM »
BOA closed me 2 years ago for tradelines, I had 2 cards and they closed both suddenly, I was at starbucks and was declined.
I did add more than 2 users at a time and probably only did tradelines a few months before they closed me.

Car Jack

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4729 on: February 11, 2021, 06:23:07 AM »
Yup, BoA fired me.  I posted about it here.  F them. 

frugalnacho

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4730 on: February 11, 2021, 07:39:02 AM »
Samesies.  BoA closed my 12 year old account last year.  I posted about it in this thread.

ducky19

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4731 on: February 11, 2021, 10:33:09 AM »
Likewise, they closed all 5 of my cards last year - total of $42k in available credit, gone like a fart in the wind over 3 (count 'em, 3!) total AU! I mean, I knew the risks but just assumed I would get a few more under my belt before they shut me down. That was only about 10% of my available credit, so it wasn't a huge hit. I did like that BoA did a lot of zero percent offers - I've used those in the past for home improvement projects, etc., but I still have quite a few cards that offer them. Screw 'em!  :)

harrydogyo

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4732 on: February 11, 2021, 11:45:52 AM »
Guidance lately  has been to list no more than one AU on BofA lately and keep it on for 3-4 months.  That sucks to have lost it!

If you're a Platinum rewards member that means over 5% on some categories for cash back on their cards which I'd hate to lose. Right now I only list one spot but it does make me nervous

Most important rule of selling TLs is never to list a card you'd hate to lose. Which is why a lot don't list any Chase. But even if you're blacklisted there are plenty of banks who want your business.  of course you have to restart the clock on age of the card.

frugalnacho

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4733 on: February 13, 2021, 02:43:59 PM »
I got a text and email from the old company that I have to add an AU, but when I log in there are no orders.  Strange.  Ever happen to anyone else?

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4734 on: February 13, 2021, 03:20:12 PM »
I got a text and email from the old company that I have to add an AU, but when I log in there are no orders.  Strange.  Ever happen to anyone else?

Once or twice.  Email old company and ask.  Usually it's a test or a mistake or a canceled order.

MoseyingAlong

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4735 on: February 13, 2021, 04:09:03 PM »
I got a text and email from the old company that I have to add an AU, but when I log in there are no orders.  Strange.  Ever happen to anyone else?

This happened to me for the first time last week.
Was notified Thursday about the new order, logged in but there was no AU info. I noticed that the order date was early Jan. So notified the company.
Friday I received a request to send a screenshot showing no gear wheel and was told the sale happened in early January but this was a current sale. Send the screenshot Friday night.
Didn't hear anything over the weekend. (Not griping, just giving the rundown, everyone needs time off).
Monday morning got a response and the AU info was now available. Added and hoping it posts.

Hope you get the AU info soon.

MasterStache

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4736 on: February 14, 2021, 07:14:00 AM »
Re BofA: Mine is still going strong but only add maybe a handful of AUs in a year. I'm sure the low number helps a lot

I've noticed lately Barclaycard has the AU pending until I verify further information. I didn't notice on one of my AUs, since this seems to be new for me, and the AU disappeared. I now log in to double check the AU has indeed been added.

BikeFanatic

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4737 on: February 14, 2021, 12:47:52 PM »
Barclay did that to me 2 weeks ago, wanted documents, the tradeline co sent the documents and they are on there but may have not posted.

Pizzabrewer

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4738 on: February 15, 2021, 01:42:39 PM »
I'm sure this has been answered many times in this thread but I don't know how to search it out.

2020 was my first year selling tradelines, I got my 1099-NEC for the $500 I was paid.  It appears to my untrained eye that the 2 most likely ways to treat this for tax purposes are:

1)  consider it a "sporadic activity" and record it on my 1040 as "other income"';  or
2)  fill out form 8919 and use "reason code" H (although I'm not sure of this as it appears to create an adverse claim against the tradeline company but I don't see a more relevant code).

I understand no one can offer me tax advice but I'm hoping someone will share how they treat this income themselves.

Thank you.

frugalnacho

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4739 on: February 15, 2021, 01:49:48 PM »
I got a text and email from the old company that I have to add an AU, but when I log in there are no orders.  Strange.  Ever happen to anyone else?

It was a canceled order.

Michael in ABQ

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4740 on: February 15, 2021, 01:50:29 PM »
I'm sure this has been answered many times in this thread but I don't know how to search it out.

2020 was my first year selling tradelines, I got my 1099-NEC for the $500 I was paid.  It appears to my untrained eye that the 2 most likely ways to treat this for tax purposes are:

1)  consider it a "sporadic activity" and record it on my 1040 as "other income"';  or
2)  fill out form 8919 and use "reason code" H (although I'm not sure of this as it appears to create an adverse claim against the tradeline company but I don't see a more relevant code).

I understand no one can offer me tax advice but I'm hoping someone will share how they treat this income themselves.

Thank you.

I treated it as a business and labeled it "Tradeline Sales". I put my income from my 1099-NEC on a Schedule C and deducted expenses for annual credit card fees as "Commissions and fees" (block 10).

My net profit this year was only a few hundred dollars but I'm hoping 2020 is better now that my couple of cards will be over 2 years old and thus generating a lot more than $25 - $50 an order. Alas, now that they're not as cheap I haven't had any orders in a couple of months.
« Last Edit: February 15, 2021, 01:52:00 PM by Michael in ABQ »

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4741 on: February 15, 2021, 02:52:51 PM »
I'm sure this has been answered many times in this thread but I don't know how to search it out.

2020 was my first year selling tradelines, I got my 1099-NEC for the $500 I was paid.  It appears to my untrained eye that the 2 most likely ways to treat this for tax purposes are:

1)  consider it a "sporadic activity" and record it on my 1040 as "other income"';  or
2)  fill out form 8919 and use "reason code" H (although I'm not sure of this as it appears to create an adverse claim against the tradeline company but I don't see a more relevant code).

I understand no one can offer me tax advice but I'm hoping someone will share how they treat this income themselves.

Thank you.

I wouldn't do your second option.

The first option you gave is an option (Other income, Schedule 1, line 8).  The other option is a Schedule C as someone else pointed out.

katsiki

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4742 on: February 15, 2021, 06:14:13 PM »
I'm sure this has been answered many times in this thread but I don't know how to search it out.

2020 was my first year selling tradelines, I got my 1099-NEC for the $500 I was paid.  It appears to my untrained eye that the 2 most likely ways to treat this for tax purposes are:

1)  consider it a "sporadic activity" and record it on my 1040 as "other income"';  or
2)  fill out form 8919 and use "reason code" H (although I'm not sure of this as it appears to create an adverse claim against the tradeline company but I don't see a more relevant code).

I understand no one can offer me tax advice but I'm hoping someone will share how they treat this income themselves.

Thank you.

I have done schedule c for the past couple of years as the other posters indicated.  I have not done taxes this year but don't think the change in form type will change that decision.

Hope this helps.

frugalnacho

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4743 on: February 15, 2021, 10:15:59 PM »
I'm sure this has been answered many times in this thread but I don't know how to search it out.

2020 was my first year selling tradelines, I got my 1099-NEC for the $500 I was paid.  It appears to my untrained eye that the 2 most likely ways to treat this for tax purposes are:

1)  consider it a "sporadic activity" and record it on my 1040 as "other income"';  or
2)  fill out form 8919 and use "reason code" H (although I'm not sure of this as it appears to create an adverse claim against the tradeline company but I don't see a more relevant code).

I understand no one can offer me tax advice but I'm hoping someone will share how they treat this income themselves.

Thank you.

I put mine as other income on 1040 schedule 1 (line 8).  I do not have any cards with annual fees that I use for tradelines, nor do I have any other related expenses I could deduct.

merula

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4744 on: February 16, 2021, 11:51:53 AM »
I did the Other Income piece the first year (I didn't know if I would continue with it), and then subsequently have done Sched C with no expenses. I could maaaaaybe call a computer purchase an expense but I'm already using that for a state educational expenses deduction, so no dice.

mlipps

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4745 on: February 16, 2021, 07:29:41 PM »
I did mine as a Schedule C as well. For those who don't know, the main tax implication of the schedule C versus "other income" is that you pay FICA taxes on a Schedule C (Employee & employer portion) but not on "other income". However, I do taxes every year at a VITA site & we are extremely limited in what we will consider "other income". The main types of income we put there are relatives getting payment for foster care, jury duty, nominal fees for surveys, and election judging. Any other 1099 always goes on a Schedule C, even if it's fairly small. I think it's the safest route.

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4746 on: February 17, 2021, 05:01:35 AM »
I did mine as a Schedule C as well. For those who don't know, the main tax implication of the schedule C versus "other income" is that you pay FICA taxes on a Schedule C (Employee & employer portion) but not on "other income". However, I do taxes every year at a VITA site & we are extremely limited in what we will consider "other income". The main types of income we put there are relatives getting payment for foster care, jury duty, nominal fees for surveys, and election judging. Any other 1099 always goes on a Schedule C, even if it's fairly small. I think it's the safest route.

Another difference that might matter to some folks is that Schedule C net income is considered earned income for things like IRA contributions and the EITC.  Other income is not.  That's my understanding anyway.

Reddart67

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4747 on: February 17, 2021, 11:15:21 AM »
Well, maybe as a warning and a data point, one of my cards that I had AUís on came under review (US Bank, not with old or new company....as a side note I have no idea who old or new company are since all references to them are in this code, but I suspect that one of the tradeline companies for another card I have is ďold company ď).

It seems one of the AUs was under review himself, for reasons unknown to me (maybe he was trying to apply for his own card?). When they looked at my account since he was an AU, they were suspicious about the number of AUs I had on it (7) and they threatened to shut my account down in 30 days. I was able to save the account, but only if I removed the AUs. Itís a bummer since that was my oldest account, so it was the most lucrative per AU. I let the tradeline company know and they understood I had to remove the AUs to keep the card. We also decided itís probably not a good idea to use it again for AUs anymore as it has been flagged. It was good while it lasted, and it was still worth it compared to not getting anything for it I suppose.

I wouldnít have been that disappointed if I lost it, but I am seasoning  another card with them with a cash back offer now, so i donít want to get completely banned from them at this point.

DeniseNJ

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4748 on: February 18, 2021, 09:17:44 AM »
Do tax forms come in the mail or email or do you go to the website to get them? When do you expect them? Has anyone else received them yet? I forget if I'm with old or new company but not sure how long I should wait.

secondcor521

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Re: Selling Tradelines / Piggybacking Part II: $1000+/hr, 20-40k/yr. Side Gig
« Reply #4749 on: February 18, 2021, 09:34:42 AM »
Do tax forms come in the mail or email or do you go to the website to get them? When do you expect them? Has anyone else received them yet? I forget if I'm with old or new company but not sure how long I should wait.

All of the above, depending on which company and how you're set up.  You should expect a Form 1099-NEC, and you should have either received it by now or had it made available to you.