payment and taxes?

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cochise

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Jul 30, 2008
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Berkeley, CA
i'm sure this has been asked before, but as the economy is consistently changing I'm looking to hear the most up-to-date answers.

i'm new to ppc/am and was curious what did you guys do in terms of receiving payments/paying taxes/anything else financially related?
 


cochise: You kind of need to say where you're from, because taxes change depending on country, state and sometimes even municipality.
I'm going to assume you're North American because you simply assume that everything's the same everywhere...

Wherever you're from, money laundering is always an option ;)
 
What about proof?

This is my first year being self-employed so I'm investigating the same questions as the OP. I am in the US and I know I've got to pay taxes on all my income. So far, it hasn't built up to the point of making quarterly payments so I'll be dealing with it all at once for this year.

My question is what do you use for proof of income? So far, my payments have all come through paypal and have been less than $350 each, mostly much less. Since everything is done through the computer and for several companies/clients, I don't have anything to generate a 1099 form yet. Is my paypal history sufficient proof if needed at tax time?
 
sorry, i am located in the US. i didn't assume everyone was, i just assumed i had put it in my profile settings already. i'm not ethnocentric... just lazy
 
Just Lazy? Well, that's ok then :D

Honestly though, if you're doing decently with your online work, then instead of trying to figure it out for yourself, get an accountant. Seriously. Their fees are tax deductible as it is, so if you're even earning $200 a week from AM, they will save you some serious money and their services will basically be free.

Now, from what I'm aware of US tax structure your best bet is to setup an LLC if it looks like you could be earning more than $75k per annum from this.
Corporate taxes are below personal ones at this point.
You're also allowed to write off a whole heap of crap that you couldn't from personal tax. Namely any bit of computery goodness, vehicle usage that's for business, a percentage of all your bills commensurate to the amount of space in your house that you use for business (i.e. you've got a 5 room house, use 1 for working in, then 20% of your household expenses are "for business").
There's a fair bit more, but I don't keep all that up to date with US taxation as I no longer have any interest in running business there.
Although I should have, and then run into a few millions dollars of deficit, and then asked to be part of the corporate bail out :D
 
Limited liability companies FTW. I'm assuming that in the US, they are treated like a separate "person", as in the UK, but if you have a good tax advisor, that allows for all sorts of tax minimisation jiggery-pokery.

It really winds my other half up that she pays about 50% of her income in taxes, and I pay far, far, less because I'm not a wage slave :D
 
haha alright thanks very much guys! i just didn't want to suddenly be overwhelemed with taxes when it came. i'm not entirely sure as to how much i'm looking to make this year (as i'm still sorta growing), but we'll see.
 
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