Tax rules?

[RE2Boys]

Don't forget to take the self-employment health insurance adjustment to income if you otherwise qualify!

See :https://www.irs.gov/publications/p53...link1000208843

and
https://turbotax.intuit.com/tax-tips...oyed/L6bRhLaVE

[aaronc879]

Quote:

Originally Posted by RE2Boys Don't forget to take the self-employment health insurance adjustment to income if you otherwise qualify! See :https://www.irs.gov/publications/p53...link1000208843 and https://turbotax.intuit.com/tax-tips...oyed/L6bRhLaVE

This has little impact on me since I save enough in tax deferred savings to get my MAGI down to around $15-17K/yr and therefore get very low cost HI. This year I am paying $28.94/mo. If the ACA subsidies are taken away in a couple years then this info would be helpful for me so thank you.

[donheff]

I'm just amazed people can make a living at this. Is participation limited so people can't do multiple trials at the same time? Have you ever had a serious side effect and, if so, do the immediately stop your participation?

[aaronc879]

Quote:

Originally Posted by donheff I'm just amazed people can make a living at this. Is participation limited so people can't do multiple trials at the same time? Have you ever had a serious side effect and, if so, do the immediately stop your participation?

I have done studies as my sole source of income in 2012-16, 2020. I have done well over 30 studies and have never had a serious side effect. Yes, you have to do only one at a time. Some clinics participate in a shared database that tells them if you are already in a study at another clinic. Otherwise it's on the honor system. Many study subjects have very little honor though. There are people who "double dip" which increases the risk of side effects. Those are the people who make $50K+/yr. I have never topped $30K/yr but my expenses are low so that's fine. I like because I get a lot of time off and still make a living wage(by my standards). My current study is 4 periods where in each one I check in at 7am on Monday and get out at 10am Thursday. That's 75 hours and I get $1500. Then there is an out patient visit a week after the last period. If I complete the whole study I get a $2000 bonus. So I get $8000 for 17 days of work spread out over a 4 month period. Lots of time off for decent money. There are some big studies like one posted recently for 56 straight days in house for $16,800. I don't like those studies because most of the people who do studies are rude and excessively loud. I can't stand being in a clinic more than a week at a time. Definitely not for everyone but if the alternative is minimum wage or unemployment then it's a good option IMO. Every medication that you or a loved one has ever needed to take had to first be tested by people like me. It's an important service that someone has to do.

[Koolau]

Quote:

Originally Posted by aaronc879 I have done studies as my sole source of income in 2012-16, 2020. I have done well over 30 studies and have never had a serious side effect. Yes, you have to do only one at a time. Some clinics participate in a shared database that tells them if you are already in a study at another clinic. Otherwise it's on the honor system. Many study subjects have very little honor though. There are people who "double dip" which increases the risk of side effects. Those are the people who make $50K+/yr. I have never topped $30K/yr but my expenses are low so that's fine. I like because I get a lot of time off and still make a living wage(by my standards). My current study is 4 periods where in each one I check in at 7am on Monday and get out at 10am Thursday. That's 75 hours and I get $1500. Then there is an out patient visit a week after the last period. If I complete the whole study I get a $2000 bonus. So I get $8000 for 17 days of work spread out over a 4 month period. Lots of time off for decent money. There are some big studies like one posted recently for 56 straight days in house for $16,800. I don't like those studies because most of the people who do studies are rude and excessively loud. I can't stand being in a clinic more than a week at a time. Definitely not for everyone but if the alternative is minimum wage or unemployment then it's a good option IMO. Every medication that you or a loved one has ever needed to take had to first be tested by people like me. It's an important service that someone has to do.

I certainly appreciate that you do it. I understand you can make your living at it. So I guess it's all good. But personally, I'd rather go find a j*b. I understand that YMMV.

[sengsational]

Quote:

Originally Posted by aaronc879 I am also surprised that they haven't been caught by the IRS. However it is not just a couple people it is possibly a majority of the hundreds(or even thousands) of people who do this for a living.

How closely do they validate your identity? I'm sure they ask for a driver's license or something, but I can see those who are more interested in the money than in following the rules could offer a fake one. I'm sure they also ask for an SSN, but, again, like employers, if they want to hire a person, the validation might be cursory or completely lacking.

[pb4uski]

I'm guessing that each participant is required to complete a W-9 Form, which officially provides the payor with the recipient's TIN. The W-9 is signed under penalties of of purjury.

Quote:

Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number...

The payor isn't required to validate the TIN with the IRS so if a recipient provided a bogus TIN there is no way for the payor to know... but the IRS could chose to go after the recipient for not only tax compliance but also falsifying the W-9.

But people are stoopid, so I suppose that some do it.

[aaronc879]

Quote:

Originally Posted by pb4uski I'm guessing that each participant is required to complete a W-9 Form, which officially provides the payor with the recipient's TIN. The W-9 is signed under penalties of of purjury. The payor isn't required to validate the TIN with the IRS so if a recipient provided a bogus TIN there is no way for the payor to know... but the IRS could chose to go after the recipient for not only tax compliance but also falsifying the W-9. But people are stoopid, so I suppose that some do it.

Correct, you have to fill out a W-9 at the start of every study. They also say the income is reported to the IRS and we will receive a 1099. There is no further info given on how to file taxes even if pressed. You do also have to show a valid ID. You also have to read part of the informed consent out loud to verify you can read it and understand what it says.