So how much is your tax for YPN earnings for 2006 I am filing as Individual and my tax sums around 9000$ I am wondering if it would have been less if I had setup company (so I could show expenses)
Speaking of tax how do you submit payments for self employment income? (specifically medicare and social security)
If this is first year your ok if not your in trouble. Taxes can be paid first year in your tax form. It has place for other income or business income. Tax form figures it all out easy. Now if your doing this second year you should be filling quarterly taxes for both state and fed in the USA. Not sure about other places i only hate paying in one country at a time. Medicare and social security are figured in when you add income from business in tax form. Lower your taxes by setting up regular IRA. Any money added in a year is deducted from income. You will pay less taxes and have a retirement account. $4000 per year allowed for regular Ira in USA.
Ive been making money off the net for a few years now, and never filed quarterly. I take my taxes to the local H&R Block or Total Tax office, and they do all my federal, with my w2's and my 1099 forms from google, ypn, etc.... and they just figure what I owe and I cut a check to uncle sam....... the same for my state and local taxes. I don't see or hear a thing until next year......... never have filed quarterly or been told to do so by any tax (pro). The only thing I was told is that we need to save 34% of every dollar earned as misc income (1099) to cover the taxes now, here in Pennsylvania.