Hello, I am located in the united states. I havent put in a tax id number. I make almost 100 day. Will I need to pay tax for all my earnings? Sorry if this is a stupid question. Please tell me all the info I need to know about the government taxes and affiliate marketing
Yep. You will need to talk to a tax person. I file taxes quarterly now (4 times a year)... but I can write off "expenses" such as computer, phone line, home office, etc.
Yes, you need to pay taxes, otherwise they'll find you eventually.... heh heh. I just use Turbotax, and it works fine. Last I read, they won't ding you for not making quarterly payments your first year, but you're expected to after that. For $100 a day, I'd make sure to set aside at least 25% of that for taxes. When you're self-employed there are some extras you have to pay as well.
I've never heard of the quarterly tax thing, but then again I'm not making $100 a day either. I still have a day job and eeven though I have 4 kids and a mortgage, I claim no deductions on my regular 9-5 check so the maximum amount is taken out for taxes. My wife owns her own business (which earns more than $100 a day) and makes no regular tax payments either that I'm aware of. H&R Block has done our taxes for the last 6 years, and they've never mentioned anything about quarterly payments. Of course, with 4 kids and a mortgage, our tax liability is pretty small, so we always get a refund too. And yes, I do file taxes on my piddly $6-$10 a day. After deducting part of my house (gotta love home offices), my laptop, and 1 of my ISPs, I made a profit of like $73 last year! WOOT! As an aside, I'm really impressed with any of you guys who understand taxes and accounting and stuff like that. I can do enough to budget my money and make sure that I'm putting away enough for retirement and kids' college funds (assuming they don't go Ivy League), but beyond that I'm clueless.
So, what does everyone write off? Computer, phone line, refunds WHat else? and If i get into PPC could I write that off also?
I didn't do AM last year, but I did freelance and ended up writing off several things. These were: - The cost of my desktop computer (I bought it from my dad for $125) - The cost of my laptop computer (I bought it brand new half way through the year for $675) - The cost of my PayPal fees (or other payment fees) - The cost of outsourcing work to others (somewhere around $500) - The cost of my web site and web hosting for my business site ($250) - The cost of paper, pens and a printer + ink ($75) - The cost of repairs/upgrades I did to my desktop computer ($80) There were probably a few others, but all told, it added up to nearly half my earnings. I used TurboTax to e-file and had what I owed in taxes taken right out of my checking account. It was my first time ever filing taxes, but it went well. I've heard of people doing quarterly payments, but as far as I know, that's not absolutely necessary.
I write off anything and everything I legally can. I saved my self tens of thousands of dollars last year in taxes.
^ Yep, but the important thing is to not overdo it. If you get caught writing off things you ought not be writing off, you'll be in pretty big trouble. So exercise some caution and you should be fine.
This is an excellent list of deductions. One that should be added is the cost of your home office. I have a dedicated spot in my house for my business. It only totals 120 square feet, and my home is ~1900 square feet, but it does allow me to deduct a percentage of my mortgage payment, electricity, water, sewer, garbage, etc. If you have the space in your home to "dedicate" to your home office, do it. I also have a Sprint PCS phone that I use when registering domain names and in one case as the contact number for technical support, so I deduct all of that. If your business is regional, and you don't mind a "colorful" car, plaster it with permanent advertising (like a city bus or cab company would) so it is a mobile bill board. Not only will it help you increase business, it will make all your mileage (as well as the car itself) deductable. Don't forget incidental expenses like food for a client meeting. In other words, if you go visit a client and bring donuts, the donuts are deductable. Yellow page (or any other type) advertising. Promotional items like pens, thumb drives, mp3 players, etc with your company name on them that you give out to prospective clients. Stamps (for those occassions when you *gasp* must use snail mail!) Just remember this though: Always save your receipts!
You are best advised to speak to a local tax office who should be able to at least provide the correct information for you - as people may be able to deduct various payments that you also make, but you might not be able to deduct them depending on your business etc If you plan to claim any expenses... keep receipts My other piece of advice is to look at saving money up to pay for your tax when it is required. If your tax rate is 25% and you need to pay any other annual or quarterly expenses, figure out a reasonable amount you should save. If it is feasible, look at saving 5-10% more than the expected bill so that you have a little bit of leeway.
Are you getting checks to US address? I think that they don't send checks if you don't put your tax id number.
Err... you guys are making me a little bit uneasy with all of this IRS talk. I just got started in this and also have a 9-5 where I get cut at single and none. Married with a kid. No mortgage. I don't save reciepts of anything, but I also don't see much that could qualify as a valid tax write off with what we do. Maybe our computers and internet access, but that's it. Pens and paper to keep track of everything, maybe a calculator here or there. Trivial stuff. To be honest it kind of dissuades me from marketing because I honestly don't want to screw myself over and owe the government at the end of the year. LoL.
Thanks! Yeah, I would deduct all of those things as well, but I live with my parents rent-free, so I really don't pay anything for my office/bedroom space.
Than they will ask for your tax number, because they need to send you w2 at the beginning of the year.
You can still say that you pay rent to your parents. They can just sign a statement or something. Just ask the tax company where you make your taxes, they will know what to do.
You will always owe when you have home made business, no matter what. Take any tax software and put that you spend more than you earn, you will still owe.
Then his parents would need to file that income as it would amount to more than $600 in 1 year and therefore become taxable income... it might be easier not to look at claiming it if he isn't paying any rent/bills etc.