by Dana Miranda, CEPF®
Contributor
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…
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?”
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:
Here’s why: Yes, technically you’re receiving the income as a “gift card,” but it isn’t a gift, per se.
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).
Because we know you like finding creative ways to make money, here are some taxable items you might not expect:
Back to that reader question … here are a few things you don’t have to report as taxable income:
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.
Contributor Dana Miranda is a Certified Educator in Personal Finance® who has written about work and money for publications including Forbes, The New York Times, CNBC, Insider, NextAdvisor and Inc. Magazine. Contributor Larissa Runkle added additional reporting.
This article contains general information and explains options you may have, but it is not intended to be investment advice or a personal recommendation. We can’t personalize articles for our readers, so your situation may vary from the one discussed here. Please seek a licensed professional for tax advice, legal advice, financial planning advice or investment advice.
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