Pay your taxes but
CLAIM ALL YOUR FRIKKING EXPENSES
Every service you buy, every application or piece of content you buy every PC upgrade you make, every broadband bill you pay, every bit of stationary, every bit of business related travel, a percentage of your homes leccy and heating bill (if you work from home)
IT ALL COMES OFF YOUR BOTTOM LINE FIRST! ALL OF IT!
I'll just add (at least)
I'll also say that until you are earning 6 figures in dollat US terms you are "low risk" in the US and EU for getting caught - but it's a risk all the same. If you are claiming benefit (on the dole, unemployed etc) and are seen wandering around with a pocket full of 20's there;s the chance a neighbor or just some jealous passer by will shop you.
Here's a hypothetical of how bad things can get if you don't account for expenses BEFORE paying your tax.
Your TOTAL Income for the year $10,000
Govt wants 30% of everything you earn OVER a $5000 tax threshold they take $1,500
You are left with $8,500
Then you realise you bought a PC, proxies, captcha solves, a desk, needed air con for your office in the summer, travelled to see clients..and that cost you $3000 in total
So, you've paid $1500 tax
You have $5,500 left in your pocket
However what you SHOULD DO is...
Your TOTAL Income for the year $10,000
You bought a PC, proxies, captcha solves, a desk, needed air con for your office in the summer, travelled to see clients..and that cost you $3000 in total
SO YOU DEDUCT THIS FROM YOUR GROSS INCOME ($7000 left)
Govt wants 30% of everything you earn over $5000
You've paid pay $600 tax
You have $6,400 in your pocket.
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You paid $900 tax on your expenses in the first scenario DOH.
If you leave it to chance, if you don't keep records and hope, the IRS will take their cut OFF YOUR TOP LINE NOT YOUR BOTTOM
You will have lost the right to argue about it, maybe get a criminal record and pay a shit load more tax.
Yes - you might get away with it while your just earning a few hundred a month more, but at some point you're probably going to get caught.
Scritty