When you sign up for a Squidoo account, you are not required to give your tax information. In fact, all you have to hand over is your PayPal address to get paid. But do not let this fool you into thinking that Squidoo does not send out tax forms at the end of the year.
Once you exceed $600 in payments from Squidoo, you will get notice that you have to submit your tax information in order to get paid. Do not worry if you do not get the email immediately after passing $600 in earnings as I think I was over $1000 before I got the email.
Here is what the email says:
Good news! You are well on your way to earning (or already have earned) $600 on Squidoo this year. Wow. Your lenses are performing very well, and we’d like to thank you personally for the good work.
BUT… in order to keep paying you, and to make the tax guys happy, we need you to fill out a little info. This is just so we can send you a 1099 form for your records. We promise to keep your information secure.
Click on the below link or copy and paste it into your browser. Keep getting paid!
Then, you just enter in your tax info and you are good to go.
When you get this email, it will also tell you all of your Squidoo accounts that will be tied to the tax info (if you have multiples). And that is based on which accounts use the same PayPal email address.
Update for 2014: Squidoo no longer sends out 1099s or requires tax info.