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Do you get paid by PayPal or Check for your affiliate commission ?

Discussion in 'Business & Tax Advice' started by joe0074, Sep 23, 2015.

  1. joe0074

    joe0074 Regular Member

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    Do you guys choose to get paid by Paypal or Check for your affiliate commission ?
    I would like to know which one is better; Paypal or Check.

    Do you have to pay Tax for your commission if you get paid by Check ?

    Thank you so much for your information.

    Joe
     
  2. dankerman666

    dankerman666 Regular Member

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    Once you pass the $599 threshold of earnings in the USA then yes you have to pay taxes. Doesn't matter what method of payment you get.

    I get direct deposit from clickbank and check from google.
     
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  3. Tanya2015

    Tanya2015 Newbie

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    Yes, U need to pay tax
     
  4. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    I used to get a check from Clickbank back when I used it, but now I get direct deposit (the same goes for Adsense as well).

    I'm not sure about other countries, but in the United States you are legally required to pay taxes if you made more than $600 that year, even if you received the money in cash.
     
  5. joe0074

    joe0074 Regular Member

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    How does the government know if you get paid by cash ?

    Thanks
     
  6. Zwielicht

    Zwielicht Moderator Staff Member Moderator Jr. VIP

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    Unless a business pays you in cash and has you fill out a W-9 form, they wouldn't know outside of an auditing situation.

    It's like when a kid opens a lemonade stand that accepts cash only (before you say anything, I saw one that had a card reader). Hypothetically, if that kid accepted only cash and spent the cash without ever depositing it into his bank, the IRS wouldn't know about it as they have no way of tracking the child's spending habits.

    Going back to the spending habits, the spend habits of an individual can tell the IRS a lot about how much they're making. For example if they get audited and report that they made only $5,000 that year but they just used their Chase bank account to purchase a fully-paid off 2016 Mercedes-Benz S-Class for $90,000, something obviously looks off their.

    Of course, take all of this with a grain of salt as I'm not a tax expert.
    http://www.rothcocpa.com/articles/what-happens-if-i-am-audited-by-the-irs/
    http://money.usnews.com/money/perso...s/2013/04/12/what-does-the-irs-know-about-you
    http://www.irs.gov/pub/irs-pdf/fw9.pdf
    http://www.dailyfinance.com/2012/01...rty-dozen-red-flags/#!fullscreen&slide=981216
     
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    Last edited: Sep 23, 2015