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Do I have to pay taxes with money I've made?

Discussion in 'Business & Tax Advice' started by mrgibblet, Jan 8, 2014.

  1. mrgibblet

    mrgibblet Junior Member

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    I've been working with affiliaxe, and I made $1,100 last november, then another $1000 last december (which i have yet to receive)

    So I made around $1.1k in the year 2013. Apparently I have to pay taxes if I've made over $600? How do I go about doing this?
    And how much do I pay? I heard it's 30%... but thats a fucking lot
     
  2. Checkmate

    Checkmate Elite Member

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    You won't have to pay anything on those earnings because they are too low, if you make over $600 you have to file.
     
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  3. stretch361

    stretch361 Junior Member

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    Looks like he did make over $600..

    When you do your taxes, you'll have to add it to your income. How much you pay depends on what tax bracket you are in.
     
  4. Checkmate

    Checkmate Elite Member

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    Yes, I meant if you make over $600 you have to file no matter what. Also I believe under $10,000 in 1 year is only in the 10% tax bracket.
     
  5. mrgibblet

    mrgibblet Junior Member

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    Well, shit

    I guess I better learn how to do taxes
     
  6. chalky123

    chalky123 Junior Member

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    Where are you from? It mostly depends on your country. Laws are not same everywhere
     
  7. RosuC

    RosuC Regular Member

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    To get a response to your question you have to say where are you from, how the money came and WHERE. All depends of these unknowing things that you have to provide. If you seek for help - the give us the information :)
     
  8. tony_d

    tony_d Elite Member

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    Unless you have some form of moral attachment to paying taxes, it's best to incorporate a company in Hong Kong and book all the revenue there... 100% tax free, legally.

    Of course you still need to pay personal income tax on whatever you pay to yourself, but you have a great deal of control over how much and when you get paid, and if exercised properly that control can mean you pay little to no tax.

    EDIT: I just noticed it's only $1k. In this instance, just pay your taxes in your home country. It's really not worthwhile spending time on tax structuring until you're earning an amount that's above a normal salary in your country.
     
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  9. mrgibblet

    mrgibblet Junior Member

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    I live in the United States.

    To my knowledge, I'm supposed to pay 30% taxes on anything I make over $600, and I have to pay them before April 15th of the next year.
    I just feel like 30% is an unjust number, I mean, for every $1,000 I make, I have to give away $300? that fucking sucks man.

    Also, I don't exactly know where to pay my taxes. If anyone could help out with that that'd be great.
    Another thing, I think I remember reading somewhere that I can get a tax deduction if I provide proof that X amount of dollars I make goes back into the business. Is this true?
     
  10. Griggs

    Griggs Junior Member

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    I'll give some input here, just be aware that I'm not a tax professional, nor do I have any idea what state you live in or what kinds of other income you have. If you want a definite answer, go see a CPA.

    Tax brackets change every year, but if you've only earned 1100 for year 2013, you likely won't have to pay very much tax. You can deduct qualified business expenses out of your income, thus reducing your income. Say for example you spent $500 on business expenses, your qualified income would only be $600. However, this does not prevent you from filing as you made $1100 for calendar year 2013.

    As a sole proprietor (which you are unless you've set up another business entity - and I'm pretty sure you haven't), you're responsible for paying your taxes, as well as the taxes an employer would pay. This includes federal income, medicare, and FICA (social security). If you weren't aware, your employer pays taxes on your payroll. You have to contribute this now as a self-employment tax. You also have to pay state income tax(if your state has income tax - mine does). I believe the form you have to file for this is a 1040-SE (on top of the 1040 you already have to file for personal).

    At the end of this month however, you should receive your 1099 from any affiliate programs that filed. Often, if you did not make over $600 with any individual company, they won't send you a 1099. This means they didn't file for you, and the IRS doesn't know about your income. This doesn't mean you don't have to file, just reduces the chance of an audit if you don't. If you get a 1099, just get turbo-tax, man. Pretty sure it's free for simple filings.
     
  11. youtalkmedia

    youtalkmedia Senior Member

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    you pay with your income tax. You just declare how much you made, then you send a cheque.

    I am from canada, I put my earnings into businesses, any business that makes under $30k does not have to pay any tax. That being said, you cannot use that money for personal gain, but it is free to use for "business expenses" like computers, a business car, an office, business meals, websites etc. Or if your just looking to save some money, you can open up a bank account under the business, and just let it grow in there. (although you will have to pay tax once you take the money out of your business)
     
  12. mrgibblet

    mrgibblet Junior Member

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    So you're saying, if I can PROVE that at least $250 of my $1,100 I've made has been put back into website expenses and such, I will only have to pay ((1100 - 250) x 0.3) = $255?

    And, how would I go about filing my taxes to prove that?
     
  13. XSilverClaw

    XSilverClaw Junior Member

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    If you don't want to pay taxes, go live in a rich ass country like qatar. They're too rich, they don't even require citizens to pay tax .-.
     
  14. BusinessMagnet

    BusinessMagnet Power Member

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    You're from which country?

    Do you really need to pay taxes if you earn more than $600? Clarify it with someone again. I'm sure you don't need to pay taxes for such earnings.
     
  15. seomark

    seomark Junior Member

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    You made that money, but is that profit? Or did you spend some money to make that? Because if you make $10k but spent $5k to make that $10k, then you'll only pay tax on the $5k . If you're working in a job and pay 30% tax a year, then you'll have to pay 30% on that $5k most likely, hope that makes sense...

    Here in the UK for self employed the year runs April 1st to end of March. And then you have to pay your tax / national insurance by 31st of January the following year.
     
  16. manking

    manking Regular Member

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    You have to pay taxes, that is how life works. Do you think if you had a job, you don't pay taxes?
     
  17. BarryAllen

    BarryAllen Junior Member

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    I'm not sure how tax laws are in the States but from my knowledge in Canada you don't have to pay tax on anything under $7K/Year. So if you only made $1.1K I don't really know if you have to pay tax but if you said that it's everything over $600 then that really sucks, it's all about the state because of different laws in each. Just look it up on google and add you're state name at the end!
    BA,
     
  18. tony_d

    tony_d Elite Member

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    Indeed, and the presumption starts in the opposite - that that money was not used for expenses, and was indeed income.

    You don't need to file proof when filing your taxes, you just need to have proof if you're audited.
     
  19. mrgibblet

    mrgibblet Junior Member

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    OH Okay! I see.

    I think I get it now. But also, is there anywhere I can call to find out the exact amount of money I owe?

    I'm looking around on irs.gov but can't find one.
     
  20. Checkmate

    Checkmate Elite Member

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    I would only worry if you have ABSOLUTELY no money to pay off taxes if there even is any which I doubt since the earnings are so low.