If you are participating in a PiCC United project and live in the United States, it is important to understand how compensation, gift cards, or donations may affect your taxes or public benefits. Below is a clear overview to help you make informed decisions.

IRS Reporting and Tax Responsibilities

If you receive $600 or more in total compensation from PiCC United during a calendar year, you will receive IRS Form 1099-NEC by January 31 of the following year. 

You are considered an independent contractor, not an employee. You are responsible for reporting the income on your tax return and may owe self-employment taxes.

Please note:  Certain other payment methods, such as gift cards and donations are also considered taxable income under IRS rules, even if no cash is directly received. We have provided more information about this below.

W-9 Form Requirement

To receive payment, you must complete IRS Form W-9, which includes your name, address, and either your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Without a completed W-9, PiCC United may be legally required to withhold 24% of your payment for federal tax purposes (known as backup withholding).

Impact on Government Benefits (SSI, Medicaid, SSDI, etc.)

If you receive income-based benefits, (e.g. Supplemental Security Income (SSI), Medicaid, or Social Security Disability Insurance (SSDI)), compensation, including gift cards, may affect your benefit eligibility or the amount you receive. We strongly recommend that you consult a benefits advisor or your caseworker to understand how participation and payment may affect your situation.

Gift Cards as Compensation

Gift cards are treated like cash income if they can be used to purchase goods or services, by both the IRS and public benefit programmes.
This means a gift card may reduce your benefits during the month it is received. If you are unsure how a gift card will impact your situation, please talk to your case manager or let us know if you prefer an alternative method of reimbursement.

Option to Donate Your Compensation

If you prefer not to receive compensation (or a gift card), you can waive payment in writing and ask PiCC United to donate the amount directly to a charitable organisation or cause of your choice.

✔️ If arranged before you receive payment, it will not count as income and won’t affect your benefits.

❗ If you receive the payment or gift card and then donate it yourself, it will be treated as income.

Sample Waiver Statement:

“I waive my right to compensation for my participation in [insert project name] and request that the payment be donated to [insert organisation]. I confirm that I have not received and will not receive the amount personally.”

State Tax Obligations

Depending on your state, PiCC United may also report your payments to state tax authorities. We advise speaking with a tax professional to understand any state-level obligations.

Keeping Records and Getting Help

Please keep all documentation (e.g. 1099-NEC, W-9 forms). If you have any questions about your specific situation, a qualified tax advisor can offer personalised guidance.

Useful Links: Gift Cards, Tax Forms, and Benefit Regulations

SSA – Spotlight on Gifts
→ Explains how SSI treats gifts and gift cards: SSI recipients link.

IRS – Form 1099-NEC 
→ Used to report payments over $600 (non-employee compensation) to independent contractors, such as speakers or freelancers.

IRS – Instructions for Form 1099-NEC
→ Official instructions for how to complete and issue the 1099-NEC form.

IRS – Form W-8BEN (for non-U.S. persons)
→ Used by non-U.S. individuals to certify foreign status and claim tax treaty benefits.

IRS – Instructions for Form W-8BEN
→ Step-by-step guide for completing the W-8BEN form correctly.

Our goal is to make things as easy and transparent as possible. This information provides clear and essential statements about how compensation, gift cards, and donations are handled when you are based in the United States. This includes what it may mean for your taxes or public benefits.

If something is unclear or doesn’t feel right, you can always reach out. Although we cannot provide tax or benefits advice, we are here to help. If you have any questions about compensation, or opting out of payment, please contact us at: Hello@piccunited.org