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  #1 (permalink)  
Old 08-15-2008, 12:34 AM
lelouch vi britannia's Avatar
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Default Affiliate Programs & Tax

Do affiliate programs these days are collecting W-8/W-9 tax information before your commission payments can be processed/made?

Meaning, we have to fill out these forms in order for us to get paid? Then is our commission tax-deductible?

Thanks for clearing this up.
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Old 08-15-2008, 12:35 AM
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Default Re: Affiliate Programs & Tax

You pay taxes on what you earn, regardless of w9 or anything else. Legally.
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Old 08-15-2008, 12:50 AM
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Default Re: Affiliate Programs & Tax

Make sure you keep track of who you make money with. I had a few come back and bite me at tax time, 1099's get lost, places go out of biz etc. Seems like common sense but something to keep in mind when you have a ton of small checks coming from all over the place.
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Old 10-23-2008, 07:04 PM
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Default Re: Affiliate Programs & Tax

Let me also point out that you can deduct all of your legitimate business expenses. For example, if you earn commissions through affiliate programs, you can deduct your AdSense costs as an advertising expense. It pays to keep good record so you're not caught off guard when 1099s arrive in the mail.
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Old 10-24-2008, 07:47 AM
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Default Re: Affiliate Programs & Tax

Everything you are earning is taxable be sure you keep track of who you make money with. You have to pay tax as per the laws of your country.
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Old 10-24-2008, 07:54 AM
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Default Re: Affiliate Programs & Tax

Get an accountant. There are online accounting options that are fairly inexpensive, but if you are doing well at all, I would strongly suggest getting a local accountant, and developing a strong business relationship with them.

A good accountant that is familiar with the local system will save you far more money than they cost in the long run, plus the mere fact of having a CPA handling your business is often enough to prevent scrutiny, and scrutiny is never good, no matter how in order your books are.
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Old 10-24-2008, 06:29 PM
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Default Re: Affiliate Programs & Tax

I'm gonna add to mattstrike and say get a good BOOKKEEPING system in place. Whether you pay somebody or buy a program, or do it manually, it doesn't matter as long as you keep good records of whats coming in and going out.
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Old 10-24-2008, 06:45 PM
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Default Re: Affiliate Programs & Tax

Since you are asking this question, I'm assuming that you are new to this and not making much money. Yes, a legitimate CPA company should ask for a W9 before you get paid. If they don't, you have to wonder if they are skimming profits from you. In other words, they are not following proper laws by asking for a W9, so who is to say that they won't screw you out of money. In any case, apply to a good CPA program, keep good records, and possibly get an accountant when you start making good money.
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