Hi all, I am confused when I signed up with the invite(got accepted few days ago), it's about the tax information area, I dont know which to choose, anyone help me out? I want to pay the tax by my own, Dont want to be removed 30%. What should I do with the tax information area, which to choose or neither(but I have to select one of them in order to the next step when I signed up), dont tell me to ask my own consultant because I dont have one, just tell me what to do, thanks 1."I am exempt from backup withholding." 2."Check this box if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return." Which to choose? Regards
YPN is ordinary taxable income. If you collect the payment without withholding you still OWE tax on the money at the rate of your income bracket. And you also OWE Social Security on the money at about 15%. Don't pay this and get caught and you'll be one unhappy camper. The IRS is big on penalty. Should you try to deduct any business expenses on a Schedule C the IRS is going to want to know where your Social Security money is. If you are an ordinary joe and pull in less than $600 a year then you can likely show this as additional income and not pay the social security, but you'll still be taxed at your regular rate. The reality is to the Government this is taxable. If you want to be a business and take business deductions the Social Security will kick in. If you are making money in excess of $600 the you would be well served to find a "Consultant".
My point is "I want to pay the tax by my own". It's much smarter to keep that money and invest it or put it in a savings account. Because I end up making more profits, I would personally not let them hold the tax.
I dont know the answer to your problem, but I can say that this is by far the most profitable solution. Good luck.
Just send Yahoo and email and tell them what you are trying to do. Thats why they have a customer service email. And as far as taxes go. Good luck with that. Knowing which forums to fill out and when to send them in and where to send them too is part of the game. Get stung later down the line and your "smart" investing could turn out to cost you a whole lot more than you think. When you start making REAL money then you would be well served to take a little of those investment profits and find a tax person. Anyone who is making any REAL money already knows this. You don't screw around with the IRS.
just pay them your self.....you will get a w-11? form at the end of year with all your earnings on it..included this as your income,and your tax obligation will be adjusted