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First Year making money online (20k+ through paypal)

Discussion in 'Business & Tax Advice' started by neeganate, Jan 22, 2013.

  1. neeganate

    neeganate Junior Member

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    Hey guys, I was expecting to make less than 20k so I would not have to worry about taxes this year, but it turns out I was wrong. I have never filed taxes before and was wondering what my next step should be.

    Is there a certain type of accountant that is pretty helpful to Internet Marketers?

    Thanks,
    Nathan
     
  2. tax_guy

    tax_guy Newbie

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    Nathan, I'm assuming you live in the US...if so, expect to receive a 1099-K for 3rd party network payments. Mind you, this is considered to be different than a 1099-M or 1099-G for instance. Accordingly, it'll be taxed different than other forms of income and of course, the deductions will be a different ball game. I see you're from Texas...if you don't mind me asking, did you ever file for incorporation in TX? Your tax situation will dramatically change (usually for the better) if you choose to incorporate, and it could be done quickly before the tax deadline....gotta make sure you're stayin legal for the tax man! :) shoot me a PM if you wanna chat...
     
  3. neeganate

    neeganate Junior Member

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    Pm'd

    Bump I have a few questions as the deadline is coming up.

    1.) What can I deduct, I am a student so I am sure that is deductible.
    2.) After I take all of my deductions, and net profit I just pay taxes on that I am assuming, but how much tax percent would I be paying.

    I would love to talk to someone on skype who is knowledgeable in this field.
    Feel free to add me if you have a few spare minutes.

    Thanks,
    Nathan
     
  4. tax_guy

    tax_guy Newbie

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    What's your skype name? I can't send pm's yet. Your questions:

    1) You can deduct any expenses related to your business...and you're right, you're only taxed on your profit. As far as student stuff: if you're in your first 4 yrs in college, you might actually get money back depending on how much you spent. your student stuff won't really tie into your business stuff, but nevertheless you will be able to take advantage of deductions from your overall income. the student credits are mainly on form 8863...check it out

    2) Assuming you didn't incorporate, you would have to check out what you owe by using the IRS tax table: (won't let me post link, but google "tax table"...first thing that pops up) BUT remember, you are only taxed on your "taxable income"...which is after you take your standard deduction (or itemized), exemptions, and any other income adjustments.

    give me your skype name and we can chat :)
     
  5. neeganate

    neeganate Junior Member

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    Thanks for the info,
    Skype: neeganate

    Looking forward to talking to you.
     
  6. Random-

    Random- Junior Member

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    I'm surprised you got 20k passed through paypal.
     
  7. Checkmate

    Checkmate Elite Member

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    If you're running a legitimate business Paypal usually doesn't shut you down.
     
    • Thanks Thanks x 1
  8. neeganate

    neeganate Junior Member

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    Correct, I never really had any serious problems with PayPal. I provide a good service and never really have any disputes.
     
  9. realdeal85

    realdeal85 Junior Member

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    Any tips on how to make money online?
     
  10. neeganate

    neeganate Junior Member

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    Keep reading this forum, you'll get plenty of great ideas one you figure out what is going on.
     
  11. Asif WILSON Khan

    Asif WILSON Khan Executive VIP Premium Member

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    Just stopped by to say congratulations on your earnings and hope you double them for next year.
    Good Luck
     
  12. burnett4congress

    burnett4congress Jr. VIP Jr. VIP Premium Member

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    Tax_guy is right. The 8863 will point you towards the American opportunity credit, which can give you up to $2500 in deductions and credits against your income.

    Being a student though, you should be clear on whether or not you are a dependent of your parents' though. Also showing certain types of income can screw with financial aid if you are receiving any.

    As (almost) always, incorporation gives you huge flexibility if you haven't done so already.