QUESTION: Do you get paid by check for these surveys? I am on disability and can't afford to lose it by making extra money because I would lose my health insurance as well? Do they take out taxes and report the earnings?
ANSWER: Survey companies reward you for your participation in many different ways. Some offer gift certificates as rewards, some offer prize incentives, and other offer cash. Those that reward you with cash payments will typically offer a check reward or a Paypal payout. Most of the rewards are exactly that, an incentive for offering your opinion.
In most instances, you are not considered an employee of the company that is conducting surveys, so it falls under the same tax guidelines that other incentives do, such as accepting a gift card or a discount for filling out a credit card application.
With that said, I'm not a certified accountant, so I do suggest that you check with yours to find out the federal guidelines and the state guidelines for your state for reporting income from incentives.
If you plan to work exclusively with a survey company or engage in other activities such as mystery shopping, and make part-time wages, you may fall under the role of an independent contractor. In this case, the IRS offers online publications for filing requirements for employment http://www.irs.gov/publications/p501/ar02.html#en_US_publink1000220720
Again, though, I suggest checking with your accountant regarding federal guidelines and state guidelines for reporting income.
I hope this is of some help. I'm really not qualified to give advice regarding tax laws for others. Be sure to speak with your local tax representative or a quality accountant.
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