So Yahoo is going to withheld tax right at payment. In my personal opinion, not bad at all. Good to put aside the tax monthly (don't have to pay HUGE tax amount at once)
The "tax withheld" will be an option. The option to have tax withholdings automatically deducted from earnings http://ypnblog.com/blog/2006/05/20/stronger-faster-better%e2%80%a6/
Every accountant I've ever spoken to always says it's a BAD idea to give the government any more taxes than you can help during the year. Number 1 the idea of letting the government hold your money for you just sounds wrong.. Number 2 it's always better to figure your taxes at the end of the year and break even or lower your bll than try and prove to the government why they need to give it back. Number 3 and MOST IMPORTANT: people tend to treat their taxes like a free savings account they can cash out on at the end of the year. Problem is you're giving them your money INTEREST FREE!! It's much smarter to keep that money and invest it or put it in a savings account like ING and let it grow than let the government hold it all year then decide how much the feel like giving back at the end of the year.
exactly georgeb. i like to invest my money before paying taxes on it (b/c you end up making more profits)
I guess it depends on how much you make with yahoo per month...if you are only making $100, pay the tax later, but if you are making a few thousand, I would rather them take it out. That way it is not such a big hit, and you get money back.
I would personally not let them hold the tax, but my personality doesn't let me spend every penny I get anyways (try not to overspend at least) If you have a spending problem, let them hold the taxes for you and keep yourself from having to borrow to pay taxes or pay all the fees, etc... OR... get someone to help you allot the money properly.
1. Make money from YPN 2. Have YPN use DD to put in your account 3. Put portion for US taxes into savings (or invest it etc) 4. Spend the rest