how do taxes work with aff programs? do they take taxes out of the payment? if I have $1250 at $35 per sign-up...do I get $1250, or do taxes get took out? If they don't, when do they get took out?
More then likely they are not taking taxes out. Sometime you should get a 1099 in the mail and it will say amount made and taxes paid in. If the taxes paid in box is 0 then you haven't payed in any taxes. You have to then come out of pocket and make the payment. It would be best to use a tax program or get yourself an accountant. The first year I was in the business I really screwed myself by not putting money aside for taxes. Although you shouldn't be in too bad of shape if all you made was 1250$.
Like dave said, you won't get taxes taken out (possibly though if you're not a US taxpayer) upon payment but if you earn over $500 you'll definately get a 1099.
Where can I get some information on this 1099 thing and can you explain more...? Nevermind I'll find it on google.... Do you know the percentage of how much is taken out...so I can calculate how much money from this $1250 to set aside for the end of the year. And last thing, is there a way to get it took out before the end of the year tax time so I don't have $10,000 sitting in my bank to pay out for taxes next year...?
I generally set aside 1/3 of my earnings strictly for tax purposes Why the rush to give away your money? Keep it as long as you can...put it in a savings account and earn some interest on it
They don't know how much tax you pay. They don't take taxes out or should really if they do. At the end of the day, all the money you earn from affiliate programs should be added to your overall income and then tax at your taxable rate. If there is any costs involved then you should be able to deduct that from your earnings. You should only pay taxes on your profits.