After getting paypal yesterday, today I got my first Ad sell in my website for 5 US dollars. Paypal deducted 50 cents from the sale they said it was fees. Do the fees include taxes? I live in the US.. Pensylvania, is there anything I'm supposed to do with the taxes and the fees? Do it need to file a tax report or something?
If its your New PayPal Premiere account,then paypal will deduct some taxes each transaction made through your account. if you had started with a personal account,then you would have got first few transactions FREE from Taxes. but i guess,you have signed up as Premiere or Business account.
You are wrong. Paypal charges fees and they do not deduct taxes or pay your income tax for you, you are responsible for your own reporting. Personal paypal account does not have fees for paypal to paypal transfers but it is restricted to only the other sellers from the 40 Send/Receive supported countries. A Personal paypal account is not supposed to be for sales. Fees is not equals to taxes. It may feel like it but it is not.
I have a business account. How should I charge taxes and all that stuff? I got paid 5 dollars and they deducted 50 cents.. that's outrageous.
There is a minimum fees which includes the 30cents which probably makes fees on small amount looks outrageous but then again it probably takes the same amount of paperwork and procedures to process a low dollar value transaction as compared to a large one. See https://www.paypal.com/us/cgi-bin/webscr?cmd=_display-fees-outside . The credit card companies or banks would charge a pretty sum too. It is not cheap running a payment processor like Paypal. Paypal doesn't actually charge a lot. Traditional payment processor like Plimus.com which I use would charge 15% or 75cents for a $5 transaction. For taxes, you need to see what your state laws on taxes are. That is out of the control of Paypal. They can help you collect sales taxes where applicable but you need to liase with your local tax authority to pay them.
Well, when you upgrade to a premier account, you get the ability to make money by using paypal as a payment processor and also that opens you up to customers from all the 190 paypal supported countries. With a personal account, you are actually not permitted to make money through it and only paypal balance to paypal balance transfer is free, this means that you are only restricted to selling to other sellers in the 40 Send/Receive countries. Those who are not sellers cannot be your customers and cannot pay you. You can only accept up to 5 credit card payments a year at a much higher fees. You cannot use any of their merchant services too.
I'm from USA, PA... I have no idea what the tax laws are... I'm 14 lol. My parents don't know either. I have a business account, and in the edit profile there is something about taxes, but I don't know what to put in there.
Did they change the rules at Paypal? I thought that you need to be 18 years old and above to sign up for a Paypal account. I believe that also is true to registering a business.
I have seen quite a few other 14 year olds also have a Account in Paypal. Mostly using Parents CC or a elder Friends CC.
Yeah, it is really sad that kids are doing it because they just don't seems to care about contractual agreement or responsibility. Seems like they only care about themselves and think that they are invincible. That pretty much makes paypal such a horrible platform to use now.
I Dont blame Paypal for it. They can actually do nothing about it, how can they find out if a kid is registering using his parents name and CC. And nor can MB or Checkout do anything. I am sure even they got members who are 14 or even less. Sad part is that kids are actually coming online to cash in on the "Make Money Online Schemes" and are missing out on the basic education and play they are to receive at this age. Some of them might make a easy $10-$20 with some affiliate or Data Entry and think this is a god career option. They dont realize that if they dont complete there education and have some skills of their own(certificates,knowledge) even the Online world will reject them. Sad.
You would never even have noticed that I was 14. Treat my as if I was 34. I actually get Bs and As on all my classes, thank you very much. Now can we get back on topic with the taxes? How do I apply them
Lol sorry dint know youd be offended. I wasn't actually generalizing. I meant i know a few kids like the ones i mentioned. Glad you do well in School as well as Online. All the best in both fronts. About taxes, you dont need to do anything. The 50 Cents that got deducted is Paypal fees i reckon. What type of account do you have? .. Personal, Premium or Business?
no tax, you put it in your tax return if you want.. paypal is great with fees,, you just got to live with it
Do you have a registered business under your name ? You need to have one to sign up for a business account. It is just that under your contract with Paypal, it specifically said that you need to be 18 and above to sign up for an account. The last time I checked, 14 years old is not 18 years old and above. This in itself would be a breach of your contractual agreement with Paypal and could render your membership invalid. They specify a physical age and it is not the age you feel like but what you are really.
Yes I have a business, my website. Dude don't worry about my age ok? This is not the "Age" thread. It's the how do I pay taxes with paypal thread, let's keep it on topic please. I can use my dad's identity.
Contact your Accountant or your local Chamber of Commerce where you registered your business and ask them about it. I am sure that they would have tax information for you. Since you are registered as a Business, you will need to apply for a TIN from IRS.
I didn't register the business. I thought the website was considered a business. But then no I haven't registered a business I just call it business lol. Anyway, I already have a TIN everyone does.