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I'm confused. First of all what entity are you considering?? Federal, state etc or private campground?

A government agency might offer you a stipend(payment) to compensate for propane use. This can and might generate a 1099 tax form and is taxable income. How thus small amount affects your taxes can't be determined. This is however becoming less likely with the federal govt as new regulations pretty much are eliminating it. Many federal agencies are now more likely to provide the actual propane as part of a full hookup site (just like the electricity and water)

Private campgrounds are another situation which I gave no knowledge of.

 

Of course you can always refuse the stipend.

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We've chosen not to accept a stipend on a FWS gig in the past. No issue at all...

 

But at the same time, we have accepted FWS refilling our propane tanks for propane used while volunteering. I don't see that as any different than their providing electricity or water.

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The issue is whether or not they deduct the cost of the propane provided to you. I volunteer in a state park and receive a free site with full hookup every summer. Not a taxable event. I once went to volunteer at a corporate RV Resort. I was to be given a free site with full hookup. When I got there I was asked to sign a 1099 and I refused. I said I am not getting paid so I don't have to sign a 1099. It was explained to me that I would be paid $7 per hour and that $7 per hour would be deducted from my pay and I would receive a paycheck in the amount of $0.00. They said that the IRS made them do it. I found out they were deducting the value of the free site from their bottom line and that was why the IRS made the volunteer claim the value of the site. I refused to sign, terminated my volunteer position and left. Who wants to volunteer, get a pay check for $0 and owe income tax? I believe that at a Federal or State run campground this would not be a problem because they don't file taxes.

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How about donating the income to a good cause and using the 1099 for a tax deduction? Lemon to lemonade.

 

Update - I worked in ND last fall in the sugar beets and the income tax was pretty easy. One form both sides for a $4k income our tax was less than $10. Got the form online, took about a half hour to fill and mail.

 

Greg

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I know several folks who volunteered for FWS for years and received cash stipends without generating a 1099. But after an IRS review of their process FWS started issuing 1099's consistently to volunteers who accept a cash stipend, much to the dismay of a few friends who weren't aware of the change!

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We volunteered as campground hosts at a BLM campground several years ago and were given a small stipend to cover propane or whatever. We were not sent a 1099 of any kind.

unfortunetly times have changed and all federal agencies are being audited closely for some of these items. That's why we always ask the agency to purchase the propane
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