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How long can i keep doing this?

Discussion in 'Business & Tax Advice' started by JustSomeAnon, Sep 13, 2013.

  1. JustSomeAnon

    JustSomeAnon Registered Member

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    So probably like most of you here i get my income from various online methods. To cash out its transferred to my bank account. Obviously i don't pay taxes on it.

    How much am i able to transfer into my bank accounts lets say yearly without any trouble?

    I just read a thread on here where someone got a call from the bank because of the volume of $$$ coming in. Wondering where it came from, ect.

    Now, if the bank is suspicious enough they will report to the IRS correct?
     
  2. lepman

    lepman Registered Member

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    If you live in the US you definitely shouldn't mess with IRS. They say it's better to kill a man than doing tax fraud :)
     
  3. TheeAriGrande

    TheeAriGrande Regular Member

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    As lepman has already said: If you're in the US do not even try to mess with the IRS.

    Even if you are doing legit business some banks will call you and ask questions. If you're money is legit and you're paying everything you're obligated to pay and they still ask questions then change banks.
     
  4. SocialMediaManager

    SocialMediaManager Elite Member

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    Before they come to you you should go to them if $$$$ amount of money is coming in
     
  5. JustSomeAnon

    JustSomeAnon Registered Member

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    Yes, i know this shouldn't be messed with. But at this time i don't have the time to create a legit business and pay taxes. But i do still need an income of money. I will pay taxes later on no doubt. Just wondering how longi got.
     
  6. Kikerinka

    Kikerinka Senior Member

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    In nearly all countries, you do not need to have "a legit business" to be able to pay taxes. There are also tax forms for physical persons, that earn extra income outside of their work contracts.

    BTW, it's not so difficult to fill it, and you simply should do it. There are many deductible things from this in every country, so if your earnings are below 10K per year, you may end up paying nothing, but at the same time, you fulfilled your legal obligation.

     
  7. hamish11

    hamish11 Regular Member

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    You don't need a legit business to pay taxes. Just make estimated tax payments on your income and file at the end of the year. They are not going to look at your sources of income. You can say you sold items at a street fair, swap meet, etc.
     
  8. JustSomeAnon

    JustSomeAnon Registered Member

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    What do you mean they aren't going to look at my sources of income? Why pay tax in the first place then?

    How much would they tax me if i did file taxes for me income at the end of the year.
     
  9. JustSomeAnon

    JustSomeAnon Registered Member

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    If i did this, i would be in the clear with the IRS right? Why do people form businesses if they can just file taxes this way?
     
  10. bananaman5000

    bananaman5000 Regular Member

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    its being reported to the IRS already if the companies are based in the US. they already know you got the money. i hate them, but if you don't pay up they throw you in jail. extortion at its finest
     
  11. LaLore

    LaLore Regular Member

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    Depends on the earnings you report. Understand, once you start filing, there is always a chance that the fed or state will audit you. So, have your receipts, payments, invoices, etc together. One of the credits that often trigger an audit is the "business use of home" credit. I believe you're required to file a return if your self-employed income is $400 or more. Not sure though...

    If you accept payments through paypal, they do report that to the IRS over a certain amount.

    http://www.irs.gov/Individuals/Self-Employed

    This past tax season was the first time I had filed taxes in two years. Basically, I was trying to live off the grid but it was too difficult to do. My earnings were low (imo) but high enough that someone else would have reported them to the IRS anyway. I had a good bit of deductions and owed nothing.
     
    Last edited: Sep 14, 2013
  12. lancis

    lancis Elite Member

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    Business is a legal entity, e.q. its treated like a physical person. For example, it can be sued. If you sell hamburgers (we're speaking about legal business) and someone sues your business, then you will not lose any personal savings. On the other hand, if you sell hamburgers as a person, and someone sues you - then there is no buffer between you and that person, meaning you'll lose your personal savings if he wins.
     
  13. MafiaBoss

    MafiaBoss Elite Member

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    move to a country where tax law is not that much strict, i don't have money but if i have that much money coming in every month, i probably have more than one bank account for myself.split the coming income.


    adsense + affiliate income = bank 1
    some other income + extra = bank 2
    personal use = bank 3
     
  14. noseo

    noseo Regular Member

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    If you're not making much, taxes aren't that much. Get food stamps if you're hungry. If you are making money, the problems of tax avoidance can be severe.

    If you still want to cheat on your taxes, it's pretty dumb to do so by disclosing no business income. You want to live in the gray area. A good accountant can pay his fee doing this for you.
     
  15. noseo

    noseo Regular Member

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    Branding. Limitation of liability. Joint partnership. Trading stock for capital. Some tax rules.
     
  16. nanavlad

    nanavlad Jr. VIP Jr. VIP Premium Member

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  17. KHer0

    KHer0 Senior Member

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    Great.. I guess we don't pay taxes here. Never met anyone who does :D

    As long as you don't want anything from the government, they will never come for you :)

    Anyway, I always wondered. I pay taxes for money I earn as I use country resources. As IM I don't use any.. Why do I still have to pay taxes ?!

    In my country we are not like USA where there is insurance on everything. Actually, there is no insurance on anything :D
     
  18. lancis

    lancis Elite Member

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    The country is responsible for creating the infrastructure for you, defending you, keeping you healthy, etc - they need money for that. For example, do you drive? If so, who is paying for keeping the road in an acceptable condition?

    On the dark side, depending on the country, 1% to 30% of your taxes are spent on these useful things, the rest are spent on the bureaucracy, international influence, and intelligence, or worse go straight to the mafia.
     
  19. Kikerinka

    Kikerinka Senior Member

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    Yes, you will be all right with IRS if you do so.
    To the reasons of forming a business: This may differ. For example in my country, if you deal with real clients (doing SEO for other companies/ individuals as an example) and you do not have a business, they do not consider you being serious, just a dude behind a laptop :).
    But if you have business, they think you are serious, even thought you still may be a dude behind a laptop :).
     
  20. abradabra

    abradabra Jr. VIP Jr. VIP

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    Why mess with the system.Pay your taxes.It is not worth it in the long run!