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American Taxes on CPA and PPD

Discussion in 'Business & Tax Advice' started by Volation, Jan 19, 2014.

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  1. Volation

    Volation Junior Member Premium Member

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    ---- THREAD CLOSED 05/29/2014 ----
    I made almost $16,000 this year with AdworkMedia, I am 16 years old. how should i go about taxes? how much do i pay?

    Note - money goes directly to paypal. out of the 16,000 only 5000 has been transferred to my fathers bank. h

    any advice will help!
     
  2. theqavish

    theqavish Regular Member

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    This year, you mean 2014 ?
    Would you like to shed light on making 16 grands ? Methods and stuff.
     
  3. Javado

    Javado Junior Member

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    He probably means last year.
    OP where do you live in America, thats two continents.
     
  4. stacy666

    stacy666 Junior Member

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    Look at the flag at his avatar.
     
  5. Javado

    Javado Junior Member

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    Last edited: Jan 19, 2014
  6. artizhay

    artizhay BANNED BANNED

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    I would assume you only pay taxes on the earnings that have actually been paid out to you. I would equate it to me making a contract with my clients that says they pay me $500 (received), but are guaranteed to pay me another $500 in 30 days (not received). I only pay taxes for that month on the $500 I received.

    It's a bit late now, but what you should be doing moving forward is paying estimated taxes. As it suggests, you calculate the taxes you should owe on your income that doesn't automatically have taxes deducted, pay the taxes manually, then at the end of the year you should find all your tax obligations are settled. Note there is some sort of penalty I believe if your calculations aren't accurate and you underpay by like...$1000 at least I believe.

    Normally, these are paid quarterly, but you could pay them monthly as well to make the payments more manageable so you can budget more easily.

    The IRS has all the info you will need on estimated taxes: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Estimated-Taxes
    Form 1040-ES is the form you'll use to calculate the taxes you owe.

    However, since the year is over, and if you intend to pay taxes on that $5000, you'd likely just want to fill out your tax return, report the earnings, and see how much you owe (or how much it deducts from your refund).

    Slightly off-topic: If you're pushing $16,000 worth of earnings through Adwork, why have they only sent you $5000? They are net-30 with a $35 minimum payout, so you should certainly have all your funds by now unless you made the last $11,000 in the last month? And if it was in the last month, then at that commission level, you should ask for net-15 or net-7.

    Then why did you even ask in the first place...?
     
    Last edited: Jan 19, 2014
  7. Kingmunj

    Kingmunj Newbie

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    You will be in the 15% tax bracket! Yay uncle sam....
     
  8. Tensegrity

    Tensegrity Jr. VIP Jr. VIP Premium Member

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    I would add that you should never just "see how much you owe" alone, you gotta do your deductions after that for your "return" once a year, or just calculate it all from the beginning and only pay what you absolutely know you owe upfront, which will probably help you more in the short term cuz any excess money you have right now means you can invest in new methods.
     
  9. Javado

    Javado Junior Member

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    To point out the stupidity.
     
  10. seosky

    seosky Power Member

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    Best ask some Lawyer or your Father that if you withdraw all 16k to his account will that fine for him.
     
  11. liftitbuddy

    liftitbuddy Newbie

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    You will have to pay taxes on your income. You should deduct out any expenses associated with incurring the income. I am an attorney and CPA, I would be happy to assist you in the process.

    --
    The information/answer is not, nor is it intended to be, legal advice. Consult an attorney regarding your individual situation. This attorney is only licensed to practice law in Illinois. Your question and this answer do not create an attorney-client relationship. Do not send/post any confidential information.
     
  12. loclhero

    loclhero Supreme Member

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    Get dad to help you with this. My advice would be to get him to do your taxes with TurboTax. First thing is that you made $16,000 not $5000. And why wyould anyone leave their money sitting in the fuck all Paypal bank? Get your money young man. Anyway, you are going to receive a 1099 from Adworkmedia. It's going to show you made the $16k. That is the amount that THEY are required to report to the IRS that they paid you.

    You should have kept records of all lyour expenses over the year so that you can use them to offset the earnings. I'm not sure how much you're going to have to pay in taxes, probably not much but you'll pay. Get turbotax, it will walk you through everything. And get Turbotax Business not just the regular TT.
     
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