Paying taxes?

Discussion in 'Legal Issues' started by anron, Jul 30, 2009.

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  1. #1
    Hello, I'm starting out in IM, tomorrow is actually the launch of my product.

    How much should I put aside for taxes?

    And when I file them, what do I say I do, sell online?

    ALSO, I'm 17 years old. Do I still need to file taxes if I make over $5,000?
    How do I file taxes?
     
    anron, Jul 30, 2009 IP
  2. alphaneterik

    alphaneterik Banned

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    #2
    it depends on your state.... i recommend 10-15% just to mildly overdo it
     
    alphaneterik, Jul 30, 2009 IP
  3. cray820

    cray820 Peon

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    #3
    if most income comes from your web site then you are self employed. I would save about 20%
     
    cray820, Jul 31, 2009 IP
  4. mjewel

    mjewel Prominent Member

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    #4
    Since you are talking about 1099 income, you need to file a return if you receive a total of $400 or more.

    You will have to pay 15.3% self-employment tax on your net profit (I believe it is 92.35% of net is used), then any income tax would be additional. There are a number of online income tax estimators that will give you an idea of income tax, both Federal and State.
     
    mjewel, Jul 31, 2009 IP
  5. Mia

    Mia R.I.P. STEVE JOBS

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    #5
    You would be better suited talking to an accountant. You can find the necessary forms you need to file online, depending on your state. However, at your age and with all the unknowns, you might want to consider getting some advice from an actual CPA.

    BTW, are you incorporated? Do you have an actual Tax ID? If the answer to both of these is no, start there first.
     
    Mia, Jul 31, 2009 IP
  6. Taxplanr

    Taxplanr Peon

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    #6
    Anron, good luck with your first business venture! If you make money over and above expenses you may have to pay taxes. You are required to file a tax return if you receive revenues of $400 or more.

    I would suggest talking to a tax planner once you see that you will be receiving that kind of revenue. If you want a brief look into tax planning for small business click on the link to my website below and the tab for small business. That page has a link to my slideshare presentation 'Intro to Small Business Tax Planning'.
     
    Taxplanr, Aug 2, 2009 IP