Question about Taxes

I was curious if anyone new the tax percentage on how much you have to pay for affiliate marketing when you pay taxes at the end of the year. For example if i made $100,000 what would be the tax % on it I would have to pay?

Depends on where you live and which country the affiliate is in.

Ahh very late for this question lol

It also depends on your write off's everyones is different.
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Taxes can be tricky depending on where you live. If you are in the U.S. my understanding is that you have to claim income from any place that you recieve $600 or more in a calendar year.

For example, if you made $599 or less from a single cpa network, you don't have to claim that. The thing to keep in mind though, is that some networks may be related. Not sure of who, but that will be something you will want to check if you made less than the $599 with them.

Another thing is to keep track of all expenses related to your business. For example, every URL purchase, and hosting purchase is deductable. So are other expenses.

However, you cannot deduct your high-speed internet IF you also use it for personal use.

There are a lot of good books on "home based business taxes". I suggest looking more into them.

If you're in the U.S. plan on putting away at least 30% of your earnings for taxes to play it safe.

StutlerEx said:

If you're in the U.S. plan on putting away at least 30% of your earnings for taxes to play it safe.

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This has been talked about over and over in the forum but yep, 30% would be min. I actually stash 40% of all income.
But to the op's question, it can't be answered the way you put it. How much you will wind up owing at the end of the year depends on your expenses, how much you paid on your quarterlies, etc.

35% of your net income for US (between fed taxes and state taxes)

StutlerEx said:

If you're in the U.S. plan on putting away at least 30% of your earnings for taxes to play it safe.

Click to expand...

Based upon the example of $100,000, 30% is not going to make it. Try 40% and if you live in NYC and make more than that, it could be upwards of 60% (thank your big government).

My advise, if you are making that kind of money, spend a little to get some expert advise from a real expert. It could save you a lot of hassle in the future.

This is ONLY the FEDERAL portion, you will have to check for your local and state on your own.

Currently if you are single, filing single (not as a business) you'd be paying the following:

$0 - $8,375 = 10%
$8,376 - $34,000 = 20%
$34.001 - $82,000 = 25%
$82,001 - $171,50 = 28%
$171,851 = $373,650 = 33%
$373,651 - All Amounts Higher = 35%

But keep in mind this doesn't "automatically" mean you are paying 28%, because it is done in a ladder format so you are IN the 28% tax bracket, but everything under 82,000 is taxed by it's applicable bracket so the first 8K gets 10%, the 8,376 - 34k gets a 20% hit, and so on... so after working all out up to 100K.....

your tax is about 21.71%. ACTUAL tax liability, but you would fall under the 28% tax "bracket"

Like everyone else has said though, you can run it under your business, with write offs, do several things to lower your tax liability.

loclhero said:

How much you will wind up owing at the end of the year depends on your expenses, how much you paid on your quarterlies, etc.

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Brings up another good point. If he's not currently paying quarterlies, and it sounds like me might not be, then he'll end up with penalty on top of a fat tax bill come the end of the year.

In my personal experience, I've never ended up paying more than 22% in taxes, even on income over $100k. A good accountant is worth their weight in gold. (Well maybe not quite their weight in gold given the current price of gold.)

StutlerEx said:

Brings up another good point. If he's not currently paying quarterlies, and it sounds like me might not be, then he'll end up with penalty on top of a fat tax bill come the end of the year.

In my personal experience, I've never ended up paying more than 22% in taxes, even on income over $100k. A good accountant is worth their weight in gold. (Well maybe not quite their weight in gold given the current price of gold.)

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Or with the weight of my accountant, LMAO

StutlerEx said:

Brings up another good point. If he's not currently paying quarterlies, and it sounds like me might not be, then he'll end up with penalty on top of a fat tax bill come the end of the year.

In my personal experience, I've never ended up paying more than 22% in taxes, even on income over $100k. A good accountant is worth their weight in gold. (Well maybe not quite their weight in gold given the current price of gold.)

Click to expand...

Very true. I didn't pay enough of my quarterly taxes last year and got nailed for a few hundred extra on April 15.
But like you, even though my wife an I earn DEEP into 6 figures, with my expenses, her 401k, my SEP IRA contribution, our mortgage and property taxes (OUCH), our % was under 20%. So there's really no way to answer the op's question but yeah, he better be sending those 1040 SE's in.