Hi! I'm curious.. edit: This post could be more suitable for the legal issues forum but equally here. Moderators if you think it's more suitable for that forum go ahead and move it. How much do you keep in your paypal account at any one time? (if you don't feel comfortable..please give an approximation eg $10-100/ 500-1000/1000-5000/5000+) Do you let it accrue to a nice big figure before transferring to a bank account? Do you do this for tax reasons also? and can we be taxed on amounts held virtually? I'm asking this becuase here in australia it's been announced that all those on government benefits will have their bank accounts scrutinized.(although it already happens,they publically announced it) So I started to feel like i was in this false sense of security..where i was going to declare what i earn to tax dept but maybe like half to gov..until my earnings online were steady enough for me to stop recieving benefits.. I have no objections to paying tax. New self employed tax rules actually make it beneficial to be self employed. So I'm curious. Google adsense allows a publisher to hold payments until a reasonable size..and payments from pp to your bank are controlled by account holder. Are virtual monies taxable? I'm seriously thinking of keeping in paypal whatever i might earn in next couple of months,transfer july 1 or maybe even june 30...but i don't want to if paypal doesn't something evil all of a sudden. I'm verified and have nothing to hide or worried about..I guess i've heard of too many horror stories.. thoughts?
Well, in Australia, do you pay Income Tax or Savings Tax ? If you pay income tax then profits that you earn while you are physically in Australia would be taxable. It would not matter if you withdraw them to your bank account or keep it in Paypal or spent it away and withdrawing nothing. Of course, if in Australia, you only pay taxes on Savings then your logic would make nice.
Well for me I do not let it exceed $300 at any given time. It's assurance that if my account has been limited it won't be a big loss for me.
I normally withdraw all my money because the USD is constantly dropping and keeping it there too long would mean I be losing money. I withdraw them to my bank account so that I can use the money and if I need to spend through paypal, I pay through my credit card.
I always keep $300 usd . Not more than. Due to chargeback feature always care that it doesn't affect my card or bank account.
The most i've ever had in it was around $200. I honestly heard some severe horror stories about paypal freezing people's accounts and locking the money for almost up to a year. The people were probably doing something criminal and thats why paypal did it, but just the idea of something messing up really scares me. Usually there is just around $50 or less in there, and if i need more i'll add it.
thanks for the replies. It makes sense what you said. I guess i could just blog for the next couple of months build traffic and design/code templates and build that up until the july 1. That way my tax return will be easier to handle. Then I'd be in a position where i'd have a fair idea of how much money i could make to live on..then i could do away with government benefits. I can earn a little bit each fortnight before my benefit gets cut down. After being cut off 6months ago and surviving on savings..that just isn't fun. As for keeping only a little in paypal that makes sense too.
Hmm, good questions... It depends on a number of things, but anywhere from a few bucks ($5 - $10) to a few hundred ($500 - $600)... I think the most I've ever had was about $700 at one point... It never stays in there long, though...
Well I would put around $1000 to $1500 in account for bigger amount transfer by NEFT service from PayPal.So far I haven't paid any tax in last 2 years. So I am lucky here.
rohit,maybe i should move to where you are!! LOL the biggest amount i've had in there was this week,when i transferred 50$ from bank to pp. mainly to buy a few domains and webhosting. until i'd done that the most was $10. With my plans for making money online..I'm aiming for $2000week..if that accrued in pp over 6 weeks thats a whopping $18,000.. ...I wonder what affiliates that earn large sums do? LOL thanks for replies..keep 'em coming..
I also dont pay any taxes,but i do heavy transactions. I have 4 bank accounts,and i have joined 2 of them to my paypal account. I always keep around 200-300$ for emergency uses,as i shop a lot at ebay. Thanks..
$100-$500 usually but it is important to withdraw money frequently because I have heard absolute horror stories of people who have had their paypal account "locked" for no reason.
Never anymore than $2. I'm not taking any risks. I've already had enough problems with them this year.
Whatevr thats not needed stays in the account. But my money is handled by my friend and little chance of getting his account banned.
less than $5 now forever, 100% certainly put large amount of money, it is too risky, feel not safe. suggest to divide your money among several different online currencies system, still don't put too much in it. Remarks to all:My open paypal case from 7 May2008 to now, still unresolved! Mattcch2007