So - Got my first YPN check. I'm assuming they took out taxes? Is everybody else getting taxes taken out? When I got Adsense checks they gave me the grand total.
they only take taxes out if you specifically ask them to or if you are subject to back withholding from the irs.
your responsible for any taxes owed on the money.they dont withhold as far as i know.Just like adsense does not with hold
At least here in Pennsylvania, wow! 34% of every dollar earned as misc income, etc must be saved for taxes. A few years back it was 26%..... they take out for federal, state, local, social security, etc etc....
not to mention you have to pay social security 2 TIMES!1 because your an employer,and 1 more because your an employee..of your own company.WTF?
when you signed up your account, there was an option. you could also call them and arrange for them to take taxes out and what percent to take.
Login to your account, go to "Account Information". Select "Tax Information" Then check the box next to: "Check this box if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return." At least that's what I garnered after a bit of research
dont do that unless you are actually subject to backup withholding!!!!!! that would be an extremely bad move. if you want ypn to tax taxes out for you, call them and get it done properly.
Taxes are what you make of them. Just because your taxed 34% of your income does not mean you are taxed on every dollar you earn from YPN. 34% would be taxed on any money made. If your website cost 100k to run per year and you made 110k from YPN you should only be paying taxes on 10k. And I would not be so sure its 34%. Fed Tax and State tax, most cases there is no FICA/SS.
When I stated the 34% rate, that is what I was told by both a local H&R Block office and 'Total Tax' service, which I go to. We even are billed twiced for social security taxes on the ypn earnings here in PA, as an employee and employer, due to me owning the websites (business) the ads are on and as an employee of ypn. Taxes suck ! Then again, in some states you dont even have to pay fed taxes, etc.... it varies from state to state.
Do you work a real job? There is no reason you should be paying in SS taxes if you also have another job. Sounds like either way you need a real CPA not a H&R block type of firm. Just remember this... Anything that can be remotly related to your business can be written off... I don't say shaft the IRS, but don't let them shaft you. You work from home? Write off part of the taxes as rent for your business. You buy a new PC every year? Write that off. Your cell phone, your internet all that can be used to reduce your taxable income.
Exactly as 'templates's' stated above, I also was told and I had to pay for SS tax two times, as an employee of ypn and as an employer for having my own business, the websites with ads on them. I was also told my 'Total Tax service' that anyone getting a 1099 misc form in PA, is considered an employee of the sender, in this case ypn, and since they did not withold any SS tax, that is why I got burned twice for it too. Ive already send my check to Uncle Sam, and I learned my lesson, and am now saving 34% of all income earned online for next years taxes.............
Why in the hell did they tell you that a 1099 form puts you in the employee category of the sender. A 1099 is a damn independent contractor form. I think they just screwed you over!
You guys are losing the picture here. Just because you earn extra income, does not mean you have to pay SS tax on it. Get a CPA and figure out what you should be doing to save your self a lot of money.
SS tax is 15% ( approximately ) of your gross income. In PA, the employer ( your boss ) pays 7.5% and the employee ( us ) pay 7.5%, but because we work as independent contractors and NO taxes are withheld we pay the full 15% of SS tax. It's not really paying it twice, we just don't have the employer to split it 50/50 with us. You can get your federal taxes lowered a great deal by doing some serious itemized deductions, but I've never heard tell of anyone getting out of paying anything less than 15% for SS taxes. That's pretty much just a given.
In every state the employer must pay 1/2 of SS tax. Your not taxed SS on all of your gross income. Just taxes earned as a employee. If you have a real job its easy. If you earn 100% income from your online business then you should set it up to pay in SS tax based on a wage you pay your self. Profits would be above what you pay in as SS and are not always taxed by SS, but they are by Fed and State. Here is an example. You own 100 shares of Microsoft. They send you a check (dividend) your not going to pay SS tax on it, Your going to pay Fed and State tax. Mark