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Reporting Affiliate Income

Discussion in 'Business & Tax Advice' started by ButcherPete, Oct 18, 2012.

  1. ButcherPete

    ButcherPete Regular Member

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    Occupation:
    Factory supervisor; internet marketer in training
    Location:
    Ohio
    Hi guys, I'm a real dummy when it comes to taxes or even paperwork, so I have a very basic question...

    I've been keeping track of all my IM-related earnings and expenses, and I'm wondering how I'm going to report them next year. I've made about $700 in paychecks, but I've had about $300 in expenses in hosting, SEO services, etc.

    Do I have to report my extra income as $400 or $700?

    (I'm in Ohio, if that makes a legal difference) I appreciate everyone's input!
     
  2. blackjack

    blackjack Regular Member

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    you report gross income as 700 and deductable expense as 300 with taxable income as 400 and pay tax on 400.
     
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  3. bryanon

    bryanon Executive VIP Premium Member

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    Exactly as blackjack said above. But make sure you keep all receipts/invoices as you'll need them to prove your expenses in case you're audited.
     
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