DISCLAIMER: The information provided in this FAQ is general and should not be taken as tax advice or guidance. Tax laws are subject to change and may not be reflected in this FAQ. Individual states and non-U.S. countries may have different taxation requirements, which this FAQ does not address. To determine whether the rewards you receive as a result of your activity on Grindabuck.com are taxable, you should consult a tax professional. Neither Grindabit Interactive, Inc., nor the site it operates as Grindabuck.com (Grindabuck), is qualified to give tax advice.
Are all Grindabuck members subject to U.S. taxation?
The information provided in this FAQ pertains to U.S.-based members only. You are generally considered a 'U.S.-based member' if you are any of the following:
Are the rewards I earn at Grindabuck taxable?
This depends on your individual situation. Please consult with a tax professional to determine whether or not the rewards you earn at Grindabuck.com are taxable.
At what point does Grindabuck report my earned rewards to the IRS?
Grindabuck will only ask for your tax information and file a 1099-MISC for you if your account reaches or exceeds $600 in redeemed Non-PayPal rewards in a taxable year and you have submitted a completed and signed Form W-9 before the annual due date. However, even if you do not receive a Form 1099-MISC from Grindabuck, you are still solely responsible for calculating and paying, when due, all income taxes, including, without limitation, estimated taxes, incurred as a result of the rewards you earn from Grindabuck, regardless of amount, even if it is less than $600 in a taxable year. Under current IRS rules, '[T]axpayers must report all income from any source and any country unless it is explicitly exempt under the U.S. tax code.' (www.irs.gov)
When should I provide Grindabuck with my tax information?
Grindabuck does not ask for your tax information until you are close to or have reached $600.00 in rewards that you have cashed out in our rewards store as gift cards, cryptocurrency, prepaid Visa cards, or other Non-PayPal cash outs (collectively, 'Non-PayPal Rewards') in a taxable year. Grindabuck will notify you when you reach, or are close to reaching, this benchmark and you will be given the option to provide your tax information at that time. Once you reach $600.00 in Non-PayPal Rewards, and if you wish to continue cashing out in Non-PayPal Rewards, then you must submit your tax information to Grindabuck by providing Grindabuck with a completed and signed IRS Form W-9. Unredeemed Grindabucks that are held in your account do not count towards the $600 threshold; only those Grindabucks which have been exchanged in our rewards store for Non-PayPal Rewards are considered when calculating your annual rewards amount with Grindabuck.
Why aren't Grindabucks redeemed through PayPal included in Grindabuck's calculation of my annual rewards amount?
Grindabuck is not affiliated with PayPal. PayPal provides its own tax reporting for funds received through their service.
Provided that you have linked your Grindabuck account with a 'PayPal Verified' account that matches the name on your Grindabuck user profile (business names are not accepted), you can cash out an unlimited amount of Grindabucks using PayPal* and it will not affect your annual rewards calculation at Grindabuck. (*subject to PayPal's terms and conditions)
What is the process like for submitting my W-9, if requested?
Once your account gets close to or reaches the annual threshold of $600 in Non-PayPal Rewards, then Grindabuck will notify you via email with instructions on how to submit the Form W-9.
From this point and until you've submitted your signed W9 and we've successfully processed it, you will not be able to cash-out any additional non-PayPal rewards for the remainder of the taxable year.
W-9 forms can take up to 72 business hours for Grindabuck to process. We are required to ensure that your name, address, and Social Security number or Taxpayer Identification Number are valid and match the information on file with the IRS.
If Grindabuck cannot verify all of the information on the W-9 that you submit, then we will give you the chance to correct any errors or to provide any missing information. Grindabuck cannot validate a W-9 unless the information matches 100% with the information on file with the IRS.
Once we have validated your Form W-9 for accuracy, you can continue to use all rewards options available to your account for the remainder of that tax year.
It is solely your responsibility to ensure that Grindabuck has your W-9 with valid and accurate information.
What happens after I provide Grindabuck with my tax information?
If you submit to Grindabuck a completed, signed and verifiable Form W-9 for an applicable tax year, then Grindabuck will mail to you a Form 1099-MISC no later than January 31st of the following year. If you change your address after providing your W-9 to Grindabuck, please contact support to resubmit an updated Form W-9 so we can ensure that you will timely receive your 1099-MISC form. Please note that you may be required to submit a new W-9 every tax year in which you redeem $600 or more in Non-PayPal Rewards.
The 1099-MISC Form will indicate the total amount of Non-PayPal Rewards that you have cashed out from your Grindabuck account in the applicable tax year.
What if I reach $600 in rewards and I do not want to provide my tax information?
If you do not wish to provide your tax information after reaching $600 in Non-PayPal Rewards, you may continue to use the Grindabuck rewards site and earn as many Grindabucks as you would like; however, your options for redeeming Grindabucks for Non-PayPal Rewards during the remainder of the tax year will be limited as follows:
If you have any other general questions regarding the subject matter of this FAQ, please send a support ticket to [email protected]. Please speak with a professional tax advisor for specific advice regarding your tax situation.