Do we need to pay taxes for doing IM?

Kickflip · Oct 25, 2011

rakoom2002 said:
For you guys when do you start claiming taxes? Like if you just make 100 bux here and a 100 there, its a pain in the ass. Ive been struggling over the limit. do you just keep track of what youve made over the year, claim that on your taxes and then pay what they ask?

Again, you guys have to make it very clear if you are talking legally or morally. If you guys are trying to be legal, then yes you just have to have a notepad on your desktop and put in there EVERY time you receive a payment. Then at the end of the year, just add all those numbers up and add them on your tax form on the line where it says for "self employment" or possibly "business" income depending on your country/tax forms.

Got2Know · Oct 25, 2011

You should always pay taxes... just to keep from always checking in your rear view mirror. I highly recommend to anyone who is serious about IM or makes over 600.00 a year to start a LLC or Corporation. It's easy to form an S-Corporation and have payments made out to your company. You can offset some of your business expenses through credits and other loopholes that are not available to individuals. You can also slowly build your business credit and open Office Depot, Amazon, Newegg, etc accounts that will help you acquire the hardware and software you will need as your business grows. A simple excel chart to document costs/expenses can make life easier when tax time comes around, and when you start making real money invest in an accounting software like Quickbooks.

Do we need to pay taxes for doing IM?

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