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does anyone have taxes withheld from earnings?

Discussion in 'Business & Tax Advice' started by angelas111, Jul 15, 2010.

  1. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    it seems the only way is to uncheck the box "exempt from backup withholding" on the w-9 forms. but i don't know if this will make the affiliate network withhold taxes or not. i am just getting concerned that i am going to owe a shit ton of taxes from my earnings this year. does anyone know about this? i was not concerned before when i did not make that much money but now my earnings have increased significantly.
     
  2. da buck

    da buck Regular Member

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    The networks won't taxes out because you are a 1099 employee. If you are worried about it, start saving about 1/3 of your income in a seperate account so you will be ready for the tax guy.
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  3. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    angela - you'll not have taxes taken out as a W-9 contractor but you should see a local bookkeeper to help you get set up paying your taxes on a quarterly basis or else you will be penalized come next April.

    The bookkeeper should cost less than 100.00 to get this going for you.
     
  4. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    They actually charge interest on the money that you owe... it varies by year.


    If you are making any kind of decent money, it is well worth going through the process and just paying the quarterlies.
     
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  5. bertbaby

    bertbaby Elite Member

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    I found that the differential on paying the quarterlies versus the end of year not to be that much plus I always preferred to have the money in my pocket rather than the governments. It all depends if you have the discipline to bank and save the money necessary for taxes. Be honest with yourself; if not then pay the quarterly.
     
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  6. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    When you make over 6 figures on a regular basis then come back and tell us what you find to be best. I've been self employed for over 30 years and the math never works in favor of the taxpayer not paying quarterlies.
     
  7. angelas111

    angelas111 Jr. VIP Jr. VIP Premium Member

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    that's exactly why i am concerned. hoping 6 figures will happen this year and i am nervous about the tax ramifications. i'm scared to death of uncle sam!
     
  8. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    Nothing to sweat... call a local bookkeeper and you'll get what you need. It's a lot less stressful than you think.
     
  9. bertbaby

    bertbaby Elite Member

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    You are correct if you are making six figures. However, I would hazard a guess that most of the members of this forum are not making six figures with their affiliate marketing efforts and have even fewer resources for an accountant. I actually used an enrolled agent and he was constantly on my case about filing and paying the quarterlies. Back then I was making five figures and the penalty over the year was a few hundred dollars which would have been wasted doing the filings and calculations assuming you calculate the cost of your free time being worth half of your normal hourly wage. Pick your poison in life and I could make more money back then in interest which is not true today.

    And good news I do make over six figures now! :)
     
    Last edited: Jul 16, 2010