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Paypal & Fiverr taxes?

Discussion in 'BlackHat Lounge' started by l00p3r23, Sep 7, 2014.

  1. l00p3r23

    l00p3r23 Newbie

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    Hi all, 17, I've been making a decent amount on fiverr every month, for over a year now and I wanted to transfer some of that money to my real bank account. I made a paypal account back in 2013, and verified it using the etrade method and no problems so far just spent it on online things. I wanted to link my real bank account to paypal, and transfer some $ to over there. Will I have to pay taxes if i transfer money over to my real acc? I haven't payed any taxes so far. Any help would be nice thank you.
     
  2. Pejlis

    Pejlis Regular Member

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    you will have to pay taxes ,if decent amount of cash you make
     
  3. l00p3r23

    l00p3r23 Newbie

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    What do you mean exactly?
     
  4. BHopkins

    BHopkins Moderator Staff Member Moderator Jr. VIP

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    Fiverr is going to send you a 1099 regardless of what you do with Paypal. Fiverr is obligated by the federal government to send information about how much someone earned. This ensures the government knows how much you've earned.
     
  5. l00p3r23

    l00p3r23 Newbie

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    I believe i got one last year but i didn't do anything with it. Would it be a smart thing to link my real acc to my paypal, and withdraw some $?
     
  6. socialmediapro

    socialmediapro Jr. VIP Jr. VIP UnGagged Attendee

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    Yes of course you have to pay taxes on the money you have earned depending on the taxation laws in your country. But if you do not transfer it to your actual bank account it is very unlikely for anyone to notice it.
     
  7. BHopkins

    BHopkins Moderator Staff Member Moderator Jr. VIP

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    This is the worst advice. You will get a 1099 if you're in the USA. If you get a 1099, the IRS also receives a copy and knows how much you earned. If you choose not to pay taxes, one day they will come to get it, with penalties. If you earned an income fill out a tax return, if you only earned a little, you likely won't owe much, if anything.
     
  8. microeyez

    microeyez Registered Member

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    Fees and taxes are both different things, In India, you have to pay taxes on your earning after the end of financial year.
    Lets say if you make $25k, you'll have to pay 20-30% to the government.
    You should pay taxes to avoid any penalty by the government, if you don't wish to, you should hire someone who can guide you better evading taxes.
     
  9. socialmediapro

    socialmediapro Jr. VIP Jr. VIP UnGagged Attendee

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    Yeah of he puts the earned money on his actual bank account he will have to pay taxes and the IRS can easily notice it. But do you really think they notice it if someone has $500 in his Fiverr Balance or not?
     
  10. willspliff

    willspliff Newbie

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    calirify what you mean by pay taxes on transfering money from paypal to bank account?

    like per transaction will you pay taxes? if so, No.
    no added fees nor taxes on transfers just some wait time.
    (2-3 days, 3-4 on the long end)

    now, if youre in the us. after 200 transactions and $20k on one account you get a 1099 form shipped for you to file.
    if you dont meet those requirements you dont get a form. or at least i have not received any forms on any account.

    paypal: like its mother brand: just has some fked up fee policys for what income you make on that account. they charge .30 cents on a dollar just for touching it.

    oh, best bet if you want to cut the waiting time apply for the debit card.

    others can problaby shed more light on paypal but thats my understanding from dealing with them
     
  11. Pejlis

    Pejlis Regular Member

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    You will have to pay taxes, because you made some money
     
  12. Gogol

    Gogol Elite Member

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    Not sure where you live but if it's not a tax free zone, you will have to pay your taxes and I advice that you do...
     
  13. Pejlis

    Pejlis Regular Member

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    If you don't you might get extra tax
     
  14. LostConnection

    LostConnection Senior Member

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    Don't listen to the advice about somebody not noticing it. Don't know about the others here who give the solid advise about paying the taxes, but I back them up with my knowledge from studying an undergrad degree in law. I am currently still studying, yes, but I am specializing in commercial law (not in the US), but the law is the law, and as said, unless you live in a tax free country, you better pay. It's a small price for the possibility of sanctions or jail time.

    Jail time is for those who do millions in tax evasion, so not your concern most likely, but just listen to the solid advice given out here. Report your income, or consult with an accountant first, but do it. The government will help you to pay the right amount if you willingly pay it, otherwise they will take what they want. In some countries there are free sources of information or even counseling regarding tax advice, and I can try and help you with this if you wish. But do get to know your country's tax laws and report your earnings mate.

    Hope I could reinforce the sense of you paying the taxes, because it will save you a lot of trouble later on.
     
  15. hocuspocus32

    hocuspocus32 Junior Member

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    If you are in India and you have earned $20k a year , you need to transfer that money to your bank account and pay the taxes at the end of the year, Now as someone told above in India you wont get taxed for the $20k you will get taxed for the amount you will have after your business expenses, lets say if you have purchases through credit card etc and you spend $10k an year then the tax liability will only be on the balance $10k and not on the $20k. Since this is a business you can show a lot of expenses in your accounting and get the tax % deducted to 10% . Sensible thing to do is Pay it, and I dont understand the problem with paying Taxes, if you have earned then why the hell you are feeling a pain in paying taxes..
     
  16. fantasy244

    fantasy244 Newbie

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    If you are doing this in USA or any similar country, then the money is taxable the moment you have made it. There is no difference if it is in your paypal account or your bank account. Fiverr sends the figures to tax authorities regardless. And it is up to you to report it or not, which would not be a bad idea to do btw. IRS knows everything, they just choose what to do with the info or what not. There is a legal limit up to which tax is not reported. I think it is about 8k per year but I am not sure.
     
    • Thanks Thanks x 2
  17. resistosai111

    resistosai111 Power Member

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    add payoneer card and cashout through payoneer card.
     
  18. Roshaen

    Roshaen Elite Member

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    If you earned 500 from fiverr that simply means Fiverr earned 100.
    And if IRS is not concerned about you they're for sure concerned about how fiverr got that 100 and that's how money is linked.
     
  19. Roshaen

    Roshaen Elite Member

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    I would also suggest you to withdraw from fiverr soon.
    Its not worth to keep much amount in fiverr since there has been instances where fiverr account got banned with the amount being held by fiverr so its better to withdraw and pay some taxes or if something worse happen you'll end of loosing all instead of paying something that payed by everyone else in the industry.
     
  20. l00p3r23

    l00p3r23 Newbie

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    Im in the USA, no problems yet just spent the money on online things, (software, apps, etc) nothing physical. All i wanted to know is that when i link my real bank account to paypal, and withdraw some money to my bank acc after what amount would i have to start paying taxes?