Money is not taken out of your checks from YPN. They will send you a 1099 form and you will have to pay all of the taxes for the year at tax time. Therefore it would be wise to set aside a portion of your earnings each month for paying taxes later on.
Or if you have enough earnings, you'll be paying estimated taxes every quarter(or get a penalty when taxes are due in April). Consult your accountant for details. -- Derek
I cried last year when I had to write a huge check in April, including a penalty. This year(and for the forseeable future), I get to cry 4 times a year with the estimated payments... -- Derek
It doesn't get deducted automatically. It gets reported to the IRS and you pay based on your net profit. You will also need to pay 15.3% for SS and medicare in addition to your federal tax (the percentage depends on your net). You may also need to pay State income tax. If you're in the highest tax bracket, you can wind up paying almost 50% of your net in total taxes.
Unless you already have a full time job that takes care of this for you. It all sucks! Taxes suck. Flat tax all the way!!! Sorry, needed to vent
You pay based on your net, which is what is left after deducting allowed business expenses - which would include hosting or server costs for the sites that generated the income.
Almost 50%? Live in a high tax state like NY, and you can pay far more than 50% once you pay all your income taxes, SS, medicare/medicaid, county taxes, school taxes, possibly city taxes, mortgage taxes, sales taxes, gas taxes, cigarette taxes, and don't forget permits, license fees, charges, and more..... Oh, and of course death taxes when you eventually die from all this taxation... -- Derek
there are so many ways to protect your assets. get a good accountant. invest your profits. the more you make the more they want to take. any purchase which is used to generate or support revenue can be tax deductable and decrease your net taxable income. also, its important to find the balance of tax brackets. if you are in the high end, a few strategic investments can knock you down to a lower bracket and lower your tax burden. if you have to give your money to someone, give it to yourself in the form of an investment that will generate revenues for you in the future. sometimes "losing" money is actually making money. when you give it to the irs, its just lost. jmo
your income tax is calculated using what they are called tax brackets the percentage of your income tax depends on the amount of money your make you can try to find the answer at my forum about taxes TaxForum.us some of the members are professional accountants doing taxes for living