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  1. Soybomb747728

    Soybomb747728 Newbie

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    Hey guys. N00b here. I've been writing articles for like a month now. I was just wondering if I'm ever gonna have to pay taxes. Is all my income completely tax free, or what? Will I have to file taxes at the end of the year?

    Thanks, guys
    Soybomb
     
  2. farahato

    farahato Registered Member

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    It totally depends on where you live
     
  3. Soybomb747728

    Soybomb747728 Newbie

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    I'm in Illinois. What does that mean?

    Edit: Looking for a crash course in taxation or internet/paypal taxation etc... if anybody knows some good keywords to search on google or a useful link.
     
    Last edited: Sep 18, 2011
  4. awtprod

    awtprod Junior Member

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    Are you receiving income from it? Then, yes, you will have to pay federal and state income taxes like normal. I would advise talking to a CPA, they can handle it the best.
     
  5. bsbear

    bsbear BANNED BANNED

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    Technically, yes you need to pay taxes just like everyone else, though it depends on the form of your payment to decide what is sent in to the government, like some sites make you send in a W-9 with payment info and your SSN.
     
  6. Soybomb747728

    Soybomb747728 Newbie

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    What if you are just receiving like $1000USD a month into your paypal account from private individuals, but your legal address is still at your parents house?
     
  7. awtprod

    awtprod Junior Member

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    ...and you will pay income tax on it like anything else. It doesn't matter what your state of residency is. You are taxed based on where you made the money. Consult a CPA.
     
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  8. racyc

    racyc Newbie

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    Not to mention the self employment tax

    What is Self-Employment Tax?
    Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.
    You figure self-employment tax (SE tax) yourself using Schedule SE (Form 1040). Social Security and Medicare taxes of most wage earners are figured by their employers. Also you can deduct half of your SE tax in figuring your adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.

    Self-Employment Tax Rate
    The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3% (10.4% for Social Security and 2.9% for Medicare). For self-employment income earned in 2010, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).
     
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  9. Soybomb747728

    Soybomb747728 Newbie

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    Thanks for responding guys. =)

    I actually remember reading about this at one point before I got into IM. To me that seems like a sure fire way to end up in the poor house is letting the government get you on the self-employment tax. Isn't there a way you can tremendously reduce the taxes like by getting someone to sign into a partnership with you?

    I think until I start seeing good money I"m just going to completely ignore taxes all-together. What will be the consequences of this?

    Can't wait to make enough to relocate out of the US to a tax haven.