Can you get around paying taxes if you get an income with Paypal? Such as not entering your Social security number? (And instead getting the extra verification with the other 2 steps) I am not looking forward to possibly paying a few hundred dollars a year on taxes. Looking for good alternatives!
Which country are you from? In Canada they do not ask your your SIN number. (SSN?). You might want to check the policy w/ your country.. sometimes taxes are counted once entered into your bank account and NOT inside your paypal address.
If you're in the US you must report all income to the government, even gifts above a certain amount. So the answer in the US would be no, legally.
Well, apparently they keep track of it from what I hear. Do they see withdrawing money into your bank account as income? I am going to talk to an accountant later on this week about it, maybe I'll have a better answer...
Yes, it's best to talk to an accountant to keep it legal. If you were to withdraw money and just kept it at physical cash, they can't record that.. but that's unsafe to do! Don't hide from taxes
Well in India we have not paying taxes on PayPal money for limited money but than after you have to pay Tax to goverment.
That is what I was inquiring about. I am very sure I have to pay taxes to the government now, I have asked around a bit more. Great. You can't escape taxes no matter what you do.
What has Paypal with taxes to do ? Its like a bank, you don`t pay taxes because of what you get in the bank. If your grandmothers put $100 in your bank account as a gift you do not pay tax from that.
Yes, but when you send it to your bank you are taxed I believe. As long as you don't withdraw it, you aren't taxed. I'm not entirely sure, will report more when I talk to an accountant.
Don't forget to ask your accountant what the minimum $$$ is to get taxed... the minimum is slightly under 10k here. If you have 2000 they obviously won't tax you, its too low of an amount
Haha, I actually believe the amount is $600 here! I know it is somewhere around that number, because I looked into it a long time ago. You are supposed to report it if you make more than $600 or around that amount a year- I don't quite remember.
As in whole income??? What about low income families.. taxes should be less.... (I thought Canada was the worse for taxes). Well share your responses with us
You are taxed for getting money from your grandmother ? No way. No country can be so stupid. You are paying money from your work income, don`t mix in what you have or gets in the bank. The bank is just a place where they can check if you tell the truth when you are doing your tax papers.
In the US, if your grandmother gave you $1000 each year as a gift, yes you'd have to pay taxes on it. You must report ALL income and most of it above $600 requires taxes to be paid (there are some one-time large gift exceptions from family). The US government doesn't look at your bank accounts for tax purposes unless you're audited. The bank is just a holding place. You can keep the same money under your mattress. The government tracks most of the money owed by you through corporate reporting. Google, your employer, brokerage firms, etc., all report the money they give to you if it's above $600.
You just have to report income. If you make more than 600 a year, then you will have to report yourself as self-employed. I'm not sure how this works if that money is secondary. Gifts under $12000 (I think) are tax free.