Paid survey sites can be a simple way to earn a little extra cash in your free time.
And although surveys aren’t our favorite way to make extra money, they can be a convenient side hustle to take on while you’re doing other things— like waiting on-hold with your bank or in line at the grocery store. Why not turn those empty moments into extra cash by clicking a few buttons?
While many survey sites simply aren’t worth the hype, InboxDollars is one of the rare legitimate paid survey companies out there.
Sites like these typically pay in points instead of direct cash, but you can use those points to purchase gift cards with actual cash value. Should you prefer cash over the cards, you can aso turn around and sell any gift cards you earn.
Which leads us to a common question…
Do Paid Surveys Count Toward Taxable Income?
Whatever you earn through survey sites — or any other apps you use to earn money — counts toward your gross income come tax time.
A reader wrote to ask us about this:
“Is there any way to make money or (earn) gift cards that isn’t going to have to be filed on our taxes as income?â€
Short answer: Not really.
Longer answer: Taxes are complicated, but let’s quickly break it down.
The IRS files all the money you receive into tons of different categories. It taxes most of them, including those you probably expect:
- Salary or wages
- Tips
- Freelance income (where your app income probably fits in).
To the IRS, cash equivalent items look just like income, so you count them as part of your wages (unless it’s something small, like donuts from your boss).
More Things That Count Come Tax Time
Because we know you like finding creative ways to make money, here are some taxable items you might not expect:
What You Don’t Have to Count as Income for Tax Purposes
- Olympic medals and prizes: Headed to the Olympics or Paralympics sometime soon? Thanks to a 2016 law under former President Obama, you won’t pay taxes on the spoils if you win.
- Child support: No taxes on child support you receive! The payer foots the tax bill on that money.
- Carpool money: If you drive in a carpool, any money you get from passengers is considered reimbursement for your expenses, not income. If you drive with a service like Uber or Lyft, however, you’ll pay taxes on that income as an independent contractor.
There are a few more untaxables, but they get pretty particular.
Bottom line: You’ll pay taxes on pretty much any money you bring in — including the stuff you get from survey sites and other apps.
If you want to keep your taxable income low, make sure you claim as many deductions as possible.
