Hi guys I really do not want to pay a 15% self employment tax. So do you need to pay it as a clickbank affiliate? Am I self employed or am I working for clickbank? Some one please let me know. Thanks
Just don't put in your Tax ID on Clickbank... but I don't recommend it. Some IM did that and owed like 700k in taxes and went to jail for like a year. Just pay taxes! We all have to.
Canadians don't when it comes to ClickBank. I tried claiming my CB earnings on my income tax last year and H&R Block said, "don't worry about that income".
YO - Are 100% sure that Canadians don't have to pay tax when it comes to CB and other affililiate networks? Please confirm this because I have been asking this question and still confused.
That's totally untrue. You have to pay taxes on all income earned unless it's very little (like under $600). You don't pay "self employment tax". You pay income tax. It's no different if you were flipping burgers at McDonald's. The only real difference is McDonald's takes the tax off your pay check, and when you're self employed you pay it in April.
What about other countries, like UK? I'm not sure, where I have to pay any tax from Clickbank income....
Do you live in the UK? If so; pay the taxes and you can claim loads of things on the taxes and say it's to help you with the clickbank affiliate (e.g. new computer)
US residents who have more than $400 in self employed NET income must pay in to Social Insecurity. Depending on where you are located your tax laws apply.
I am in the UK - but if specifically talking about Clickbank then this would be applicable to everyone... Clickbank accounts for the sales tax (so people in Europe do not have to worry about adding on VAT, people in New York don't need to worry about adding Sales Tax and people elsewhere shouldn't worry about sales-tax related things). Regarding tax on income made as an affiliate: 1. If you already work full-time in another job you will already meet the taxable threshold and therefore you should contact your local IRS (tax office) and find out which forms you need to fill in and when they need to be submitted. 2. If you are registered as self-employed (or as business), you will normally file taxes once per year (in the UK - maybe more regular elsewhere). In this circumstance you will delare your NET income which is income from affiliate marketing/online income after deducting your business costs (affiliate commission + google adsense + website sales all equal 'business' income). Business costs vary by person... You will be able to deduct legitimate costs incurred to run your business - domain name costs, webhosting costs, hardware/software costs and adwords costs etc The bottom line is whatever country you come from you need to check with your local tax office so that you have the right forms to fill in and keep on the right side of the taxman. If your only income is from online and it is above the tax-free allowance for your state/country, you will be liable to pay some tax. In the UK, if your net income is above the tax-free allowance you will also need to pay national insurance contributions (something like £2.30 per week - which may be revised after you have handed in your tax returns, but that covers the basic level of NIS contributions). For people in the UK I would advise them to speak to their local tax office about their specific situation as it varies considerably from person to person. The IRS do offer seminars/courses to help people figure out what deductions they are entitled to when they are trading as a business/self-employed and how their tax returns should be dealt with.
I've heard anywhere below $400-600 for the entire year, you don't have to declare. Basically if you suck at affiliate marketing, you probably won't have to pay taxes. If you're making money you will.
I don't know. Once it goes over the $400 (or $600) you have to declare. You do your taxes and at the end you'll end up with a number. That's how much you'll owe. If it is a negative number, than you owe nothing.
Funny I just saw this thread. I have just spent over 1hr on the phone trying to figure out my situation. I don't care about having to pay it, I just wish it was not such a hassel to figure out!!!
In Canada, we are in tax brackets, and the more you make, the higher tax bracket you are in. 1. Yes, you will have to pay taxes. 2. Do NOT spend all your money, depending on how much you make, you'll need set aside between 15% to 40%+ again depending on which bracket you are in. 3. You do NOT need to write ClickBank invoices, you do NOT work for CB, you pay them a processing fee, they enable you to publish/earn from their gateway as a sole proprietor or company (In Canada it costs like $60 to open a SP, then a small banking fee to have a business account). 4. Let's say you made 50K as an affiliate or a publisher (doesn't matter which), it is considered income. You owe xx% based on that income. Now, as a business you have expenses, your hardware, software, payouts, some accountants will get creative and try to write anything they can off, including dinners (business dinners ), outfits, car repairs/gas, etc. So let's say you have approx 20K in expenses, that leaves you with Gross $50,000 Net $30,000. You now owe xx% on 30K (around 18% I think). 5. You do not charge PST/GST on your earnings, and they are all in US funds - It's virtually impossible to do all this on your own, you NEED an accountant, you NEED to get educated on this aspect as it may bite you in the ass at the end of the year. There is no way to make tax free money, they PTB made sure of that, so unless you're offshore and have reason to hide mass amounts of money - I'd strongly suggest you speak to not one but at least a few accountants and tax offices. I have an epic accounting puzzle with xx publisher accounts, media work, different currencies coming in from clients to CB - and I'm sure all of you have very unique needs, thus there is no end all solution. Tips: * Save ALL your reciepts, I MEAN ALL - Your accountant will love you. * Start a business, name it, open a bank account with it, render all transactions via your business * Never spend all your money, always save at least 33%-50% is my golden rule (or invest in low risk i.e ING for safekeeping). * Print out your digital invoices don't just keep them in your inbox. * If you share accounts or have partners, one partner will receive the money/check, the other partner writes him an invoice for 50%, you pay out 50% (for example). Make sure whatever you payout, has invoices to your company name to claim as expense. It's a much better solution to approach this like a real business than to keep doing stuff in your personal name. It separates your income streams, and organizes them (and it just feels good to own a business and do write offs with it). Tax sucks but you must pay it in Canada, in the states it's apparently NOT in the law books to have to pay, however everyone does so either be safe and pay or try to make a run for it like many do. Cheers, N.