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How do i pay tax?

Discussion in 'Business & Tax Advice' started by bigcasey123, Jan 31, 2013.

  1. bigcasey123

    bigcasey123 Regular Member

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    Do i need to make over $300 to pay tax? how do i report my income to the irs? what forms do i need to fill out if i'm receiving income fro seoclerks and ebay? i'm 17 and i have no clue how to pay tax lol. So far i made over $200 on ebay but my mom told me that i don't make enough to pay taxes, is that true?
     
  2. Furious George

    Furious George Supreme Member Premium Member

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    ALL income is taxable in the USA. I'm talking about federal taxes. Of course there are state income taxes in a lot of states as well.

    ebay doesn't report your income, your payment processor may report your gross earnings if you have made 200 transactions AND 20k in sales for the year, in the form of a 1099k.

    An affiliate network will send you a regular 1099 if you've made over 600 dollars.

    If you're selling on ebay as a hobby, or took a loss on the items you sold, you don't have to pay tax. However, that doesn't preclude you from reporting the income.

    Usually, the first 6000 dollars or so anyone makes is tax free. That gives poor people a chance to eat and pay rent. BUT... that doesn't meant they don't have to file a tax return.
     
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  3. bigcasey123

    bigcasey123 Regular Member

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    So i don't need to pay tax until i make my first 6,000? Awesome :)
     
  4. maxpaincode

    maxpaincode Newbie

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    True, go and create several paypal accounts with less than 4999 and you are un-taxable. Try to find things that generate you more income. And then manipulate everything and create your own method. Good luck...
     
  5. glodge2002

    glodge2002 Newbie

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    My suggestion is to build a business that is profitable enough to pay taxes o and still make good money. Trust me, I don't like paying taxes either because it hurts my pocket, but that's life. Not only that, but if you can pay taxes and still build a business, then you are completely in the clear and don't have to worry about ducking and dodging the authorities. That's if you have legit products of course. If you don't, well...that's a diff story.
     
  6. merc123

    merc123 Newbie

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    I hate to revive old threads but found this with while searching tax information

    This is extremely incorrect. Income is reported as a cumulative total of your income. It isn't reporting per independent source of income. So if I make $20,000/year at McDonald's, $3,000/year with AdSense and $100 with some sort of CPA, my total taxable income is $23,0001. You are taxed based on the $23k. Not based on making over $6k per source.

    This is obviously different if you are filing as an LLC or some sort of corporation, but as a sole proprietor, you have to claim all of the income cumulatively. The way to offset it is to have business expenses. Web hosting, domain names, advertising (Google AdWords) or software (bots) which will bring your total taxable income (AGI) down which means you pay less tax. Here's the thing though, if you offset your income with your expenses and they equal $0 then why the heck are you even doing it? You're breaking even for all of your work and no business keeps running simply breaking even every year.

    Now, if you're 15 years old (or older) and don't have a job and all of the money you make is from your IM campaigns, then file your taxes. Especially if it is less than the poverty level ($6k?) because then you won't have to pay taxes and could even possibly claim the earned income tax credit and get some money back from the government even though you didn't pay in. Everything being inside the U.S.
     
    Last edited: Mar 27, 2013
  7. blackberry

    blackberry Power Member

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    Thats true, just one correction: Americans are taxed on worldwide income, not just money made in the USA.

    A family member of mine owns a tax company. If your looking for help, I can arrange for a free consultation (that would save you about $100).

    As other people have said, even if you made no money, you still have to file a tax return and do it before April 15th (anything mailed to them must be postmarked 15th April or earlier).


     
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  8. markkbitt

    markkbitt Newbie

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    Try to go for a business that generate an income that is taxable and provide you with lot of opportunities to develop and flourish your business.
     
  9. ROTAX74

    ROTAX74 Regular Member Premium Member

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    Go thailand and fuck taxe !