taxes?

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ubaidabcd

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Do I have to hire somebody to find out what I'm going to owe? When I file my taxes and they tell me how much I owe, do I have to pay it all at once? Can they put me on a payment plan?

When the affiliate network submits my W9 to the IRS, will the IRS let me know how much I owe so I don't have to hire somebody else to calculate earnings? Will the IRS only go after me for the income that's reported to them?

Also, is the tax amount the same if you worked for an employer (considering you make the same amount, same dependents, etc...etc.) or do you have to pay more if you work for yourself?


Thanks
 


30% seems crazy, you should be able to claim all kinds of expenses for your business and get the amount you owe down. I suppose it all depends on how much you make though.
 
You have to file your own income tax. Get all your income slips together and fill out the return yourself or you can use software to do it or an accountant.

You're lucky you're not Canadian, (for tax purposes only LOL), it's way higher then 30%. That's why you incorporate, keep all your money inside the company, pay corporate taxes on the income, (18% in Canada, dick all compared to personal income tax) and draw a salary from the corporation. (that salary will be your personal income used for calculating your income tax owed.) I know it's totally different in the US as you have several different types of corporations each with their own advantages and disadvantages. My lawyer set up my corporation because I wouldn't do it myself for the money involved.

Anyhow, if you're making some decent money, get an accountant and a good corporate lawyer, they'll find ways to write things off that you never thought of and the odds of being audited goes way down when you use a professional.
 
I don't make anything outrageous, but my affiliate networks are going to report it to the IRS with those W9's I filled out. So, I'm trying to figure out how I should prepare.

Do I need to contact a CPA? Does it have to be now? Can it be during tax season?

Also, my most important question is, does the IRS offer a payment plan?

I don't want to save any money or put anything aside. I want to continue making money and when I file my return, they tell me how much I owe them, and just make payments.

I'm sure I recall a payment plan on my tax forms or when I called their phone line when I've filed taxes in the past (but I've never filed taxes as an affiliate, or somebody working on their own).
 
its additional income, just like your normal income - except its not taxed, you will have to pay taxes on it. Figure 30% of what you plan on making this year is what you will owe, you can write off domains, hosting, advertising etc to offset what you owe however. Payment plan? I have no idea
 
The 30% or whatever depending on what bracket you fit is what you owe if you dont write off anything. If you are making good money I strongly suggest finding an account that understands online business that way he can get you all the possible write-ups.
 
nachoninja said:
its additional income, just like your normal income - except its not taxed, you will have to pay taxes on it. Figure 30% of what you plan on making this year is what you will owe, you can write off domains, hosting, advertising etc to offset what you owe however. Payment plan? I have no idea
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Well right now I don't have a "normal" income, but 30% has to be BS. I'm making close to the same amount as I would if I had a job in my field. Although, I was never taxed 30% of my paycheck.

I'm thinking they have to have a payment plan, on April 15th you have to file your taxes. Although, I've never heard of a, "If you don't pay us what you owe on this day, you're going to jail." or anything like that. On the 15th you have to file your taxes, then they calculate everything and confirm what you owe.

Hell, I don't know what I'm talking about. I guess I should probably speak to an accountant.
 
kingjacob said:
The 30% or whatever depending on what bracket you fit is what you owe if you dont write off anything. If you are making good money I strongly suggest finding an account that understands online business that way he can get you all the possible write-ups.
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What exactly is good money?

I'm sure I don't fit in the "good money" category. Since I don't, what do I do? I'd like to just not think about it, but my networks are going to file my W9. Just let the IRS comes after me and see what happens?
 
projectv3 said:
beejeebers

i'm canadian as well, if i'm not incorporated by what your saying, i'm going to be taxed way over 30%??? =\
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What are the income tax rates in Canada?

If you're doing over $120k, (which all affiliate marketers should easily be doing) Remember to add the federal tax rate and the provincial together to get an estimate of your personal income tax rate. (that's why our healthcare is "free" LOL)

The IRS doesn't care when you pay as long as you pay eventually. They will keep "the juice" running while you're in arrears. Same goes for the Canadian Revenue Agency. HOWEVER, YOU have to file. It's not their responsibility to chase you down. It's up to you to file each year. If you miss a year or two, then you will be running into some severe penalties. They don't do your taxes for you, so thinking that networks submitting earnings to them is enough is just not the case.

You can file your taxes anytime you want. Most people file and pay at the same time which is just before the deadine. However, if you think the government will owe you money, then file as soon as you can.

They will not throw you in jail for not paying in full, unless you make a habit of skipping filing and live in a million dollar home, drive a ferrari and claim an income of $5,000. Then, you will probably be investigated for tax fraud...but if in doubt, seek pro help. My accountant and lawyer have paid for themselves several times over already.
 
I don't understand how if you work for yourself you have to pay more taxes than if you work for an employer.
 
ubaidabcd said:
I don't understand how if you work for yourself you have to pay more taxes than if you work for an employer.
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Because employers pay half your social security tax. When you are self employed you have to pay the whole thing, which would be double what a company employed person would pay. The social security tax rate for 2007 is 15.3 percent. Add that to the regular income taxes you need to pay, and the 30% figure is about right. Get an accountant.
 
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