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US Tax Question for Online business

Discussion in 'Business & Tax Advice' started by OnlineHustle, Feb 4, 2015.

  1. OnlineHustle

    OnlineHustle Newbie

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    Hey guys, so basically i'm kinda new at this side of things and was wondering if one should be doing anything involving tax's in this situation. If someone doesn't have a EIN or anything like that, not a registered business and sells virtual services online through a website / Paypal do they need to file for taxs if they Gross approx 40k / year and take home under 10k / year? I have heard from a few different sources if you make under 10k per year you don't need to file taxs but honestly i am kinda lost on this. If there is a certain amount you can earn up too without having to file tax's it would be great to know how much so i can plan ahead for this year.

    I also heard that if you Gross over 20k Paypal automatically reports earnings to IRS even if your sending 15k back out earning under 5k?

    Thanks in advance for any insight into this situation -
     
  2. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

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    You would have to be borderline nuts to not file, OnlineHustle. You should be paying quarterly taxes during the year and then "settling up" before April 15th of the next year.

    One of the smartest things you can usually do is to hit up a local bookkeeper and have them set you up with a system... it will cost less than 200.00 or so to get set up for a little enterprise and you can even have them handle everything for you for a nominal fee every month.

    But file, Dude, you want to do that for sure.
     
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  3. OnlineHustle

    OnlineHustle Newbie

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    Appreciate the advice