Sorry.. I had to start the first payment thread for April 07. All docs held, payment should be ACH'd on the way. I'm happy... Although with the 15th falling on a Sunday, I'm assuming any ACH/Direct Deposit payments would be credited on the 16th/17th vs the 14th correct? A $750 payment will make the account happy. Thanks all and go ahead and yell about the earliness of the thread...
kind of wierd though.. with maxbounty i got paid the amount in commissions straight without any taxes taken out (canadian company), with google adsense i got taxes taken out (usa co), and now the question with azoogle. Since they are a canadian company, so they withhold taxes on the commissions paid? A W-4 form would be required if US taxes were taken out i'd assume (US resident here). i'm not a tax pro but am wondering.... hmmmm
30% is a good number. also you should make sure to pay your tax deposits and not wait till the end of the year as you could possibly get hit with a fine. (if you setup a business u should pay monthly in US) Best way to make sure you are witholding enough is contact a CPA (Certified professional Accountant) cause the amount will vary depending on how much you make.
32% here I live in the city so I have a 1 1/2% city tax also. But I normally just pay that at the end of the year, but yeah I agree pay quarterly!
i would recommend you put aside AT LEAST 50% of your profit into a relatively liquid savings account (ie: ingdirect/emigrantdirect/hsbc) for taxes. you have to factor in more than just federal. federal income tax is 35%, then state income tax (ie: california is 9.3%), then federal self-employment tax which is about 15.3% (12.4 for ss + 2.9 for medicare). luckily federal self-employment tax is capped, but your effective rate hovers around 50% +/-. PS: obviously your tax rate depends on your bracket and these rates are incremental tax rates and you get to deduct 50% of the self-employment tax, etc, etc
oh and don't forget your city's tax/license which tends to based off revenue/receipt instead of income which sucks since you might take in $100 but only profit $0.01
tax 100: brought to you by DP forums and azoogle... guess my main question was answered. the main 750 or so payment will be made, it's then up to me to take the payment for taxes out of that myself. thought so. when will next week get here already?
pamon, also remember the quarterly estimate tax (1040es + state)... 2007 quarter 1 is due april 16th for earnings 1/1/07 - 3/31/07
hmmm im gonna look more into this... i have a business license but im currently doing all business in my name, since im a contractor with azads (1099 right?)
yeah... 1099 that gets paid on your personal return. if you form a corp or llc then you might be able to depreciate a lot more stuff, taxes, etc...
well you can write off business expenses even without having an llc or business license. you are technically doing business in canada so there are probably a bunch of loop holes out there
true.. if you're running the income through a schedule C on your return, you can depreciate lots of things and then land up with less taxes due to expenses. i'm not a tax pro so don't know more than that. who knows... interesting posts though