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I have to pay taxes this year, where to start?

Discussion in 'Business & Tax Advice' started by c0rrup, Jun 14, 2011.

  1. c0rrup

    c0rrup Regular Member

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    Hello everyone, I have some questions about what I should do about reporting my earnings.

    I haven't paid taxes before and now that I am making a good bit of money online each month I decided I should start taking this seriously and make sure to report my earnings but I have no clue at all where to start.

    Just to make it easy lets say I make $100 a day, or 36k a year online, how much of that would go to the government in taxes?

    Thanks for the help.
     
  2. Slumba

    Slumba Newbie

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    How much goes to the govt depends on which country you live in, as most countries tax rates vary.
     
  3. Nookie Monster

    Nookie Monster Senior Member

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    It depends on your status. Are you married or single? Have any dependants? Best thing you can do is talk to a tax professional.

    HTH
     
  4. tuesday10

    tuesday10 Regular Member

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    Well I am not from the states but most governments want around 25%. That said, there should be a earnings threshold, below which you don't pay any taxes. Tax systems differ from place to place so you are better off getting a consultation with someone local to you.

    Good luck mate,

    T10
     
  5. c0rrup

    c0rrup Regular Member

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    Sorry for lack of details!

    I live in the USA, I am single, no dependents.
     
  6. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    If you are in the USA, you need to pay quarterly taxes and most local bookeepers can set you up for about 100.00 or so.

    Not paying quarterly will cost you in penalties and interest so you should hop on it quickly... the bookeeper will set you up to pay 941s on a quarterly basis.
     
  7. volund

    volund Senior Member

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    Remember is is not just about the money coming in. You are running a business so you need to keep track of all the money you spend on your business as it is tax deductible. You only pay taxes on the profit not the sales...

    Every time you spend so much as a dollar document it for your paperwork at the end of the year.
     
  8. dvno879

    dvno879 Regular Member

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    You dont have to pay quarterly, its a myth. Pay every year, its around 5 percent.
     
  9. coolfx35

    coolfx35 Regular Member

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    if you are making $30 k after all the expenses, then you will be paying around 8k in taxes, federal and state.
     
  10. tuesday10

    tuesday10 Regular Member

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    Ouch! That's a lot; almost 30%. Here's a big tip: the tax laws are almost always written by the rich, and the rich invariably like to run things through corporations (companies). Perhaps it may be better to register as a company, pay yourself a small salary; that way most of your expenses can be written off (tax deductions).
     
  11. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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  12. Roparadise

    Roparadise BANNED BANNED

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    Put ads on your car then you can deduct $0.55 a mile,that can lower your net income greatly.
     
  13. tekman

    tekman Newbie

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    keep receipts, setup 403b or retirement accounts so your income is reduced, setup healthcare account. Find out what the captialist are doing and try it out. They pay less taxes so I'm sure you can too. Talk with a financial advisor and find the loopholes.
     
  14. c0rrup

    c0rrup Regular Member

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    There is so much complication with tax and all this IRS legal crap, I earn money from a adnetwork, and 2 affiliate companies, 2 which pay by Paypal one which pays by Wire.

    I understand that after 20k earnings on Paypal they report your earnings to the Government, what about my bank account how does the IRS see how much money I have and how much I am depositing?

    Where should I go for tax help? H&R block?

    Thanks for all the help so far.
     
  15. flibbertigibbet

    flibbertigibbet Regular Member

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    It depends on if you're incorporated or not.

    If you're an LLC, or corporation (s-corp or other), then you pay quarterly taxes.

    If you're a sole proprietor and don't have an LLC, and are a D.B.A. (doing business as), then you only pay yearly.

    The difference is that if you're a sole-proprietor you have to pay 12%-15% self-employment tax ALONG with a 28% tax on earnings (can be up to 44% tax after all is said and done)...then you file once a year.

    With an LLC, you don't have to pay the self-employment tax, (more write offs) and you file quarterly taxes.

    Every small business situation is different, so that's all up to how you want to do it.

    I personally would go for whatever taxes you the least amount. ;)

    If I were you OP, I'd contact a local CPA as mentioned. Every state has different laws on making money online, so you have to be careful about how you go about doing it. You don't want to pay too much, but also don't want to pay too little. ;)
     
  16. suga051982

    suga051982 Regular Member

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    You need to make sure that you keep track of every dime you spend. I keep track of everything, dont pay during the year and I even get a refund EVERY year. I have never had any problems. You need to some research. I have an llc and run everything through there. It helps
     
  17. carnage_100101

    carnage_100101 BANNED BANNED

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    I was told to put %30 of all earnings aside in a separate bank account for quarterly taxes....
     
  18. apalm8

    apalm8 Registered Member

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    I'm not sure what you're smoking.