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Paying taxes in the U.S.

Discussion in 'Business & Tax Advice' started by LeeGiS, Feb 17, 2012.

  1. LeeGiS

    LeeGiS Registered Member

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    OK, I am new to this so sorry about stupid question.

    Suppose I get $1000 check, and I cash it in the bank. How do I pay taxes off it to make everything legal?
     
  2. richelld

    richelld Junior Member

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    you pay money to an accountant every 3 months to figure out what more you owe in life.

    or you read the IRS tax code which is more epic than the bible and figure it out yourself.
     
  3. volund

    volund Senior Member

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    Going to be a one time thing then I would just claim it at the end of the year. If it looks like it is going to be a regular deal then I would find an accountant. Honestly though you are getting to the point that finding a decent one is going to be hard as we are entering into tax filing season and all the good ones are starting to ramp up now. What I would do is just wait until June and if you are starting to pull in some money find you one then.

    Remember to keep track of all your expenses. You do not pay taxes on your business income but on your profit. If you spend $200 to make that $1k then you only pay taxes on the $800 profit. If something is even remotely business related keep the receipt and write it down.
     
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  4. venkatjaya

    venkatjaya Newbie

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    Taxes are compulsory contributions done by the American citizens and residents to federal, state and local governments. This money is used by the government to provide services to the people living in America. Taxes are collected by Internal Revenue Service (IRS) which is a department in the United States Treasury.

    Most of the services provided by the federal government using the taxes you pay are taking care of the security of the country, preventing diseases through research, insuring the money in the banks, maintenance or roads and proving help to the victims of natural calamity.





    ...............................................
     
  5. LeeGiS

    LeeGiS Registered Member

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    What if I don't have a business and just work as an individual? How can I prove my expenses then?
     
  6. richelld

    richelld Junior Member

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    you don't have any "expenses" then and everything you spend to move forward is taxed.
     
  7. volund

    volund Senior Member

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    You have a business when you say you have a business. You can file as a sole proprietorship and the feds do not need any documentation as far as registering your business.

    As far as the IRS is concerned you are a business when you are doing something with the GOAL of making a profit. It can not be a hobby you have to have the Intent to make a profit. Any activity you do to make money is a business. All you have to do is file a schedule C when you do you taxes. Hell you can file multiple schedule C's if you need/want to.

    Now if you plan on doing this regularly then I would get a DBA from the county and I would get an EIN from the Feds but you can go without either of them to start with. At some point if you start making enough money you can create an LLC or corp but you can go years without doing so without any problems.
     
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  8. iggy357

    iggy357 Junior Member

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    This is a all great general advice, could not have said it better myself!
     
  9. Dumper

    Dumper Supreme Member

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    Are you under 18?
     
  10. LeeGiS

    LeeGiS Registered Member

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    Thank you, that answered my question!

    No, I'm 19.
     
  11. szhang

    szhang Junior Member

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    Very well put. You can also go ahead with an LLC or DBA if you appreciate the added credibility. Nobody wants to do business with "this dude" without an office. Under a business name people start to assume you have a store front/office and it puts them at ease.