so im new to making this much money on my own
how much would I have to pay in taxes for 100k
and how would I go about taking care of it so the
irs wont bother me down the line
was thinking of just keeping 30k in the bank for when the holler
just wondering
i get my deposits on prepaid cards too
from metabank

Get an accountant.

Code:

http://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Year_2011_income_brackets_and_tax_rates

Cant say what you will owe if anything in taxes. Don't know how your structured and set up.

I would be taking all the deductions I could tho and spending some on computers and such while you have the cash flow.

You can have a local bookkeeper set you up but you have to pay quarterly taxes in the year in which you are earning. If you do not, you'll face a penalty on top of the tax you owe.

It won't cost you a lot to get set up to pay those 941s and you really should put that in play asap.

Getting a good accountant saves you more money than you actually pay them.

you will most likely pay $25k-$40k depending on how creative your accountant is. but please plan ahead. i wish i did. owing the irs is not fun.

Originally Posted by 7878

get an accountant.

Code:

http://en.wikipedia.org/wiki/income_tax_in_the_united_states#year_2011_income_brackets_and_tax_rates

truth!

Originally Posted by Ifanafi

WTF is the relevance and importance of the OP's hypothetical question (s/he hasn't earned that much quid and likely never will).

Seriously.

Way to jump in there, Sparky, you do not know whether the OP is making that kind of change or not nor do you know if the OP ever will.

Stand down and close your trap unless you can offer the OP something constructive.

Originally Posted by Ifanafi

WTF is the relevance and importance of the OP's hypothetical question (s/he hasn't earned that much quid and likely never will).

Seriously.

The OP said he was new to making this kind of money so apparently he is likely to earn that much this year or he would not be worrying about it. Seems like you're just being a hater.

WOO OWWW Hold Your Horses Mate, you are a newbie here? and already tax questions? and 100K come one start slow and scale up, don't get to overexcited and you will face hurdles,

30K sounds about right just make sure you save all your receipts for expenses.

I've made into the 6 figure range for 4 of the last 5 years and have been a sole proprietor all that time. Might not be the smartest thing but I have no desire to do LLC etc. The one thing I hope you've done is paid quarterly estimates. If not, you're gonna get slapped.

I typically set aside 40% of whatever income I have paid to me from my affiliate networks every month. It's more than I need to but I always have a nice chunk left over after I mail in the check on April 15. But equally as important is paying those freakin' estimates. Aaaaak...I hate it. Keep in mind the govt wants your money throughout the year not just at the end of it.

don't mean to thread jack but what about if you clear 16K-17K this year do you still have to file quarterly?

Originally Posted by KeyzDT

don't mean to thread jack but what about if you clear 16K-17K this year do you still have to file quarterly?

By law in the US, if you make more than 600.00 annually you have to file quarterly.

Originally Posted by BassTrackerBoats

By law in the US, if you make more than 600.00 annually you have to file quarterly.

shit...what kind of penalty am I looking at?

Come and fly here to our county mate.. Like newbie millionaires on the internet these days.. they run and fly to other country because of taxes, they run because of this.. I know some of them!

Originally Posted by mrfacebook101

Come and fly here to our county mate.. Like newbie millionaires on the internet these days.. they run and fly to other country because of taxes, they run because of this.. I know some of them!

they dont pay taxes in....uh.....Australia?

Originally Posted by KeyzDT

shit...what kind of penalty am I looking at?

It won't be egregious at that number of 17K but get things squared away so you don't have future issues.

I would get an accountant....I'm paying $ 1,000.00 USD a month for messing up on my returns....heck it would have been easier to pay 5k a year for an accountant than paying 1k a month for 10 years...

I ALSO learned....to have 2 accounts.... 1 bank account is for cash only transactions...the other is for transactions that are with checks or direct deposit....

always deposit money into the bank less than 10k at a time.... 9,000 is the typical deposit I make into my account...this way its under 10k (irs doesn't get notified by bank about the deposit, regardless if its cash or check)...and in a cash account....there is NEVER notification to the IRS...in a account taking direct deposit or checks...there is notification.

not sure if this makes sense but um....a phenomenal accountant should be able to help you with saving tens of thousands a year

Originally Posted by BassTrackerBoats

By law in the US, if you make more than 600.00 annually you have to file quarterly.

Not sure that's true. I think it all boils down to the amount you owe more than the amount you make. Unless I'm mistaken, if you wind up owing over $1000 in taxes on april 15 2012, you would have been required to pay estimated taxes throughout 2011.

Also, if you're married and your spouse has a 9-5 job with regular withholdings taken out you might not have to worry so much about it.

I think that 600 figure you're talking about is what you will get a 1099 on from the affiliate network or whomever.

EDIT: just checked this out on turbotax site http://turbotax.intuit.com/tax-tools.../INF12056.html

Vote for Ron Paul in 2012 GOP primaries and none of this will be an issue.
/truth

Smartest thing to do is go to the Casino. Cash it all in. Play a few slots, and so on. Then tell them to write you a cheque of the large sum. I know in Canada, they cant tax you on that.

Originally Posted by anonym0use

Vote for Ron Paul in 2012 GOP primaries and none of this will be an issue.
/truth

that man does speak the truth in many ways.

I would definitely get an accountant. I am trained as an accountant, and I still go to one. There are so many tax law changes, strategies, and different loopholes each year that it is hard to keep up with them all. And the price of making a mistake, in terms of penalties and interest, can be extremely high. A good accountant can more than pay for him or herself in terms of taxes saved.

Accountant will solve this problem, don't cheap out and get a bad one, invest into you're accountant and you'll walk out with more in the end.

-LUXURY

It depends on how you setup your business. Typically you will pay about 15% self employment tax ( social sec, medicare, etc) plus your federal tax rate which is prorated based on your income. At about 100k PROFIT you would be taxed at about a 20% fed average rate. Plus your state tax depending on where you live. If you had about 100k in profit you probably looking closer to 35-40% in taxes (Not offering advice just my estimate)

There are so many ways to reduce your taxable income. I would definitely consult an accountant.

I've always kept 35% on the side just to be safe with it all, save any and all receipts.

If you think it can be marked as an expense, mark it down, goto a tax professional and they will say yes or no, then go from there.

move to a country that does not tax your income. if a us citizen, then u still owe some taxes, but they are pretty low. Don't do the mistake to stay and live in a high tax country.

if only I could live comfortably in said country. Hell, having a swiss bank account isn't even safe anymore.

Originally Posted by willenglishiv

if only I could live comfortably in said country. Hell, having a swiss bank account isn't even safe anymore.

Safer than not having one it is.

Really , you pay taxes for internet money ! How do they even follow u !!

Originally Posted by KHer0

Really , you pay taxes for internet money ! How do they even follow u !!

You make it sound like virtual monopoly

Originally Posted by KHer0

Really , you pay taxes for internet money ! How do they even follow u !!

Well if the money goes to your bank the Govt is going to know about it. Any money that leaves any kind of electronic trail back to you allows the IRS to connect the money to you. If you run an all cash business or partly cash and the cash part ends up not going on the books then it is much harder to trace but internet money leaves a trail unless you use completely fake info which comes with its own dangers.

There are a lot of ways to legally reduce your taxes, get a good accountant and take advantage of them. In the long run you pay about the same and you will sleep much better. You can get away with tax fraud for years but at some point the Govt is gong to find out and when that happens you are screwed, it is seriously not worth going to prison for a few thousand dollars at least for me it is not.

Originally Posted by mrfacebook101

Come and fly here to our county mate.. Like newbie millionaires on the internet these days.. they run and fly to other country because of taxes, they run because of this.. I know some of them!

i am running,