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

Hey Biz, always pay your taxes.

ps, miss your other avatar lol

This is one of the reasons I thank God I'm not living in the US

Yep, I'm under 18, and in March I have to visit the tax person and pay my taxes to the "lovely" IRS.

Rushpat said:

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

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PayPal does NOT currently require a tax ID, but all it would take is a stroke of a Congressional pen and PayPal would have to implement that.

I attended a conference a few weeks ago where the National Taxpayer Advocate said that the IRS is already doing some research on virtual economies like Second Life. That's probably further away than PayPal reporting transactions to the IRS. It could be years by the time Congress finally gets their head around a virtual economy ... they're just starting to understand PayPal, after all.

By the way ... I know it's tempting to slam the IRS and call them losers. They are simply doing a job that Congress requires - collecting income tax. The problem really lies with Congress. If you want to blame someone for our screwed up income tax system, blame the losers in Congress. I have many good friends in the IRS and without exception, they are all nice people just trying to earn a living working for the government. It's our lawmakers that are the evil fat cats sitting on the asses doing nothing for the money they collect.

I think I am done ranting now.

Hey ... that gives me an idea. Maybe I need to set up a Second Life tax practice.

I'm similar to gimme4free however I use throwaway paypal accounts which I then transfer into Betfair & transfer the funds into several of my other betfair accounts by matching different bets. I can continue to make more & transfer the money almost anonymously with no real show of my name except for withdrawing. And last time I asked Betfair CS I don't need to pay tax on my 'winnings' or total bank. I pay tax on other earnings that are BACs though.

Even if you are under 18 you still have to pay taxes right? Paypal is definitely not a way to avoid taxes. Everything is traceable through paypal, or if you put fake info in paypal and you are in the USA you are committing a crime, maybe got to jail etc

I found this article very interesting

hxxp://www.common*dreams*org/views06/0403-27.htm

internext2 said:

Even if you are under 18 you still have to pay taxes right? Paypal is definitely not a way to avoid taxes. Everything is traceable through paypal, or if you put fake info in paypal and you are in the USA you are committing a crime, maybe got to jail etc

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Age is not necessarily a requirement. You could be under 18 and have to pay or over 18 and not have to pay. The requirement is based on your filing status and your gross income.

In order to find out if you are required to file a tax return, you should read IRS Publication 17 (or the instructions for Form 1040) or talk to a tax professional.

As far as PayPal ... they are not currently reporting transactions to the IRS. This is a change that is likely to happen in the future. For now it is up to you to report your income (less deductions) on your tax return. Of course, if the IRS believes you are hiding income, they may ask to see your records and even subpoena your account information from PayPal.

vegasvillan said:

I found this article very interesting

hxxp://www.common*dreams*org/views06/0403-27.htm

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That was an interesting view of the issue. I had not heard it put quite that way.

On the other hand, we have taxation "with representation." We send out taxes in to our government who decides what to do with it. That is the foundation of our system of government. If we are unhappy with the way our government spends our money we have a duty to vote our representatives out of office. Unfortunately, the solution is not simply to not pay our tax bill. That only leads to trouble.

Good article, though.

Just to add some clarity to the situation, income you received prior to your 18th birthday is no less taxable to you than it is now. If someone else is claiming you as a dependent, and your income was above a certain level, they would be well advised to report it and pay taxes on it, or they or you may be subject at some point to paying it with penalties and fees.

If nobody is claiming you as a dependent, then you should report your full income, and pay the appropriate taxes on it. Be sure to claim all your appropriate deductions/credits too.

Alternatively, and perhaps the best advice - seek professional competent advice.

Those of you who live in the United States, and use gambling losses as cover for your businesses would also be smart to realize that gambling online is illegal in the US, and could possibly have implications well beyond your tax liabilities. And of course, gambling losses are subject to a ceiling. I do assume you folks are a lot more clever than myself, but I just pay my taxes.

Pay your taxes and obey the law, don't want the IRS punish you now?

My Mother works for the IRS she's the collector aka "Revenue Officer", the secret is to keep your money always in motion..... if your money is in motion it's not income basically towards the end of the year dump a shitload of your money into google adwords it's 100% tax deductible you pay nothing...... then get your money back and profit. Just always keep it moving like the big boys do and you have no problems. You can also open up non profit trusts. Those are amazing.

Keep money moving