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Just turned 18 . . .do i need to pay tax?

Discussion in 'Business & Tax Advice' started by bizkiller, Jan 12, 2009.

  1. bizkiller

    bizkiller Regular Member

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    So...

    I'm scared of IRS.

    and i heard you have to pay 28% of your income every year?!?!?!

    is thi true?

    then, that's fuckinc razy!!!



    I do not wanna pay that much..

    any adivses for me?

    :(
     
  2. gimme4free

    gimme4free Executive VIP Jr. VIP Premium Member

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    Deal in cash, speak to your aff managers, do everything through paypal and then if any questions are asked, gambling winnings ;)
     
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  3. andre09

    andre09 Junior Member

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    That's what I was planning to do, but after a two hour segment with an accountant I would really advise you to not do that. It's not worth it risking your credit to save some money, you'll probably be making a lot more in the future and you will regret it then. Also, I'm not 18 yet but I still have to pay taxes, so unless you just started IM when you turned 18 I hope you paid then :) Google IRS audits to see how much they can end up costing.
     
  4. bizkiller

    bizkiller Regular Member

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    even if they pay me via paypal,.


    they send my w9 form to IRS.

    and IRS will know...
     
  5. charles

    charles Junior Member

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    Register offshore corp or LLC.
    Obtain taxid and offshore bank account.
    Use proxy in country corp/bankacct are located to signup to CPA networks.
    ???
    Profit! (less tax)
     
  6. davidson

    davidson Registered Member

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    Hmmmm .... Bad Advice. I am a California Registered Tax Preparer and I teach classes in how to prepare income tax returns. I would NOT recommend trying to avoid paying income tax by any of these methods. Even illegal income is taxable for US purposes. (That's how they got Al Capone, after all.)

    Gambling winnings are taxable. Losses are deductible only up to the amount of winnings, so that's a bad strategy, too. Sorry, guy, but you don't know what you are talking about.

    By the way, I was at a meeting just a few weeks ago where I spoke with the Commissioner of the IRS. Congress is working on a way to force PayPal to report all transactions to the IRS for tax purposes. The days of hiding money for online activity is coming to an end. There's a whole department within the IRS working on this.

    Just because you are 18 doesn't mean that you will have to pay income tax. It depends on how much you earn and whether or not you are still considered a dependent at home. You are mostly likely NOT at the top of any tax bracket, so you won't come close to 28%. In fact, if you have held any kind of employment where taxes have been withheld, you are likely to get a refund.

    My advice to you is to keep track of your business income and expenses. There are thousands of legitimate ways to reduce your income tax liability. The best strategy is to:

    1. Learn how to do your own income tax returns - even if you use a program like TurboTax. And you won't spend as much having someone else do your tax return and charging you a small fortune each year.

    2. Educate yourself on the laws. You can't take advantage of loopholes you don't know about.

    3. Don't try to cheat on your taxes. You may get away with it for a short time, but sooner or later it's bound to bite you in the ass.

    If you are unwilling or unable to do these three things, get yourself a good tax lawyer or a CPA to help you ... and be prepared to pay through the nose.
     
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  7. antsaoo

    antsaoo Supreme Member

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    uh oh :p here you need pay 28% if you earn +30k € im afraid all so some guys told since the most companies are in US you need pay the fking 22% also outside EU gambling win is 60% and when you lose you wont get any reduction in tax :p say you win 200k then lose all you still pay the 120k lol
     
  8. bizcredit

    bizcredit Power Member

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    You also have to pay taxes BEFORE you are 18 as well. You dont get a free ride because of your age...
     
  9. gimme4free

    gimme4free Executive VIP Jr. VIP Premium Member

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    At the moment I file for 20K/year, anything else through paypal is tax-free, have been getting away with that for over a year now.
     
  10. tattoo

    tattoo Regular Member

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    it doesn't matter how old you are. if you get a 1099 you need to file, but you won't pay federal taxes unless you hit the threshold income level.
     
  11. bizkiller

    bizkiller Regular Member

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    ahhhhh hella confusing stuff...
     
  12. berrycorp

    berrycorp Guest

    ummm.... best stop cribbling and go to a tax consultant and tell him everything.... he will handle everything else... thats what i do...

    frankly... my policy is... think bout ways to earn money... u can hire ppl to manage it... its not that big a deal trust me.. chill... n concentrate on what matters the most...

    the a good tax consultant will save u more that he will charge.. n never waste ur time in doing ur taxes.. they are tough job to do... trust me..!
     
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  13. davidson

    davidson Registered Member

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    You better start making plans because I am telling you that the time is coming when the IRS will have access to the information from your PayPal account. Plus your credit card processors will be sending statements - just like the investment brokers have to do now. You have a little bit of time, but it won't be long.

    Just letting you know the future.
     
  14. davidson

    davidson Registered Member

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    Good advice. Get someone you trust to help you. That's the bottom line.
     
  15. alcapon3

    alcapon3 Junior Member

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    If I am having other income taken care of, can I file taxes on my CPA earnings separately or does all income have to be filed at the same time?
     
  16. banditrei

    banditrei Registered Member

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    no matter how old you are you need to pay your taxes. thats what they bust most bad guys for is tax evasion. it is easier to get out of anything else, except paying taxes.

    that is what they busted capone for was tax evasion. all the stuff he did...errrr he was innocent

    this new administration is already talking about raising taxes on business. the more you make the more they take. It is part of doing business.
     
  17. bape

    bape BANNED BANNED

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    from my understanding, this is the way to go to legally lower your taxes no?
     
  18. springer98

    springer98 Regular Member

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    What ******** and davidson said...

    I've been the CEO of an s-corp for quite a few years now and the few hundy I drop on an accountant at tax time each year is worth WAY more to me than dealing with the IR-fuggin-S.

    A simple audit, even if you prevail, is very stressful and time consuming. If you employ a professional, they'll either see to it you don't do anything that'll likely get you audited or they'll stand up for you if you do. On your own, in an audit, your chances are piss poor to unbelievable.

    There is a huge difference between tax avoidance and tax evasion. Avoidance is simply finding all the legal ways to not give the government any more than they are really entitled to. Evasion is flat out lying about it and, if caught, will land you in the federal slammer. No matter what you've heard, a federal lock-up is no country club.

    No one likes to pay taxes but, as long as we all share a spot in this great country it's a fact of life. We all have to contribute... just like being a valuable member here at BHW.

    Suck it up and do the right thing. If you tell the truth the first time, you don't have to remember what you lied about, later. The truth is always the same but lies keep changing. It's too easy to get caught in a lie.
     
  19. nam6641

    nam6641 Supreme Member

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    Speak with a tax consultant and see what you can categorize as a "business expense". If you can count lunch every day as a business expense then do it, same thing with gas, your new laptop, wear and tear on your car, etc... I'm going to have to look into all this soon. Though personally I think is friggin ridiculous that you have to bust your azz to make money online and then hand over 1/3 of it to uncle sam so he can use it to pay for troops in iraq, or how to study the mating habits of the african ant.
     
  20. Rushpat

    Rushpat Registered Member

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    They got him because he lied on a tax return.

    Currently, I don't think paypal requires a tax ID. I wonder if this will change in the future? I read just the other day that the IRS wants to start taxing the RMT guys for games like WoW and Second Life. What a bunch of losers!

    and if it is from a taxable source http://video.google.com/videoplay?d...i=wFduSc6XBYiGqwLPyNCoBQ&q=theft+by+deception

    Whenever possible, try to deal in cash, you'll probably have less headaches.