Entrecard is a membership organization that is also a for-profit business. It is decidedly capitalistic.
Okay, I'm a communist — a Christian communist. In fact, a real Christian is always a communist at heart and does his or her best to bring forth communism. Now, that said, I must point out that this communism is not, I repeat, is not, Marxism.
The Christian is never for the violent overthrow of anything. The Christian is never violently coercive. Entering and remaining in the Temple is done voluntarily. No one is forced to enter or to remain. There are rules once in the Temple, but that's not the issue here. The Christian never curses anyone. The Christian always, always and only, blesses souls no matter how far into the dark those souls may be. The Christian never seeks to punish but rather to avoid doing that. These are all terms that are necessarily subject to semantical understanding. It takes much more than a cursory overview to grasp the fullest sense-meanings.
Now, I don't curse Entrecard or its owner or members or advertisers (sponsors), etc. I do want them all finally to become real (meaning, in the Christian sense, Christians). If everyone does that, ultimately all will be set straight in the world. It will be perfected.
Recently, there was a dustup about one who calls himself "EuroYank." This involved whether and to what degree EuroYank violated Entrecard's rules (for which alleged violations his membership was revoked) and whether and to what degree Entrecard's rules were/are proper and legal, etc.
I waded in with no spirit of bitterness or animus. I waded in, in the spirit of helpfulness for all concerned.
During that process, I mentioned that Entrecard's EC's (Entrecard Credits) are U.S.-dollar denominated and salable and tradable on Entrecard and that as such, they are more than likely subject to U.S. income tax. The exact point at which the IRS (Internal Revenue Service) and U.S. law would see EC as taxable is something for the IRS to determine and others to dispute in the courts if they are so moved.
This may have frightened and disturbed bloggers, would-be bloggers, and members and would-be members of Entrecard.
Let me say that Entrecard is rewarding members with EC. They will have to do the work to determine if and when they will need to supply members with IRS forms and which forms. Do they need to supply members with IRS 1099-MISC? Does the member need to report earnings using 1040 Schedule C whether or not Entrecard must furnish the member with a figure to report? There is a $600 threshold concerning the 1099.
Would the member's blog qualify as just a hobby, or would it be considered and treated as an online business?and
The details concerning all of this are too extensive to exhaust here. Bloggers must research. However, before you shrink away imagining that all of this will just add too much complication and red tape to your life as a blogger, let me say that being a legally registered, online business cuts both ways. You report income, but you report expenses too. If your expenses are greater than your income, you get to deduct the losses from your taxable income. You pay less tax that way.
Most home bloggers use their equipment and internet connection for all their personal computing as well, so not everything they use in their "business" will be a business expense for tax purposes.
Just read the IRS instructions to determine where you stand and what steps to take.
I'm not holding myself out here as a tax attorney or CPA or the like. I offer this solely in the spirit of helpfulness.
Blessings To All,