How much are you taxed with online earnings?
By LouieWpHs04
@LouieWpHs04 (4554)
United States
March 15, 2008 6:45pm CST
How much are you taxed with your online earnings? I wanted to get a rough idea of how much i'll make in about 5-6 months worth of time(after taxes) if all my plans go even ok to sort of well. I know that this might be a little inacccurate because tax stuff differs from state to state, but a better or at least a sort of idea for now would be helpful. So maybe a rough percentage of how much you were taxed would be great. Leave out the local taxes as obviously they probably wont apply to me unless we live in the same state.
4 responses
@slickcut (8141)
• United States
17 Mar 08
I don't really know because i do not pay taxes anymore since i draw a disability check...I really have not made that much on line to be taxed..I feel the little amoun that i do make i deserve it....because disability does not pay much as it is....They allow you to make a certain amount anyway...
1 person likes this
@drknlvly6781 (6246)
• United States
16 Mar 08
I don't know exactly what the rate is, but online earning would fall under Self-Employment, so you would pay whatever the self-employment tax is. The good thing is, you don't have to report your online earnings until you have earned more than $600 from it in a year, so if you haven't reached that, you're good to go.
Also, but don't quote me on this, I think that self-employment funds are only taxed federally. I don't think that you are taxed by state. But I would check into that because I'm not sure. I have filed self-employment since '03, and I don't remember having to fill out any special forms for the state of Ohio. I have a tax place that does it for me. It may not be true, it may be just true for my state, so I would look further into it.
Finally, to know how much self-employment tax is for Federal Taxes, get yourself a form Schedule C and work it. That will tell you how much you will pay in taxes for self -employment.
@LouieWpHs04 (4554)
• United States
17 Mar 08
I was thinking I could probably stick with a program like TurboTax when it comes to online earnings & they could clear it all up for me as i've heard others using it and it works great for their online earnings. Thanks for the information though and if TurboTax doesn't cover it i'll definitely be looking in some places elsewhere to get my information and make sure I pay all the taxes that I should be paying!
Anyways. Thanks for the information as some of it I actually didn't know for sure. :P
1 person likes this
@coffeebreak (17798)
• United States
18 Mar 08
But if it does go over $600 - and you file Sch C...you can also deduct business expenses. I used to do tax work up for qualifiing people for home mortgage income/debt qualification. So you could deduct the "cost" of your PC, your internet access monthly service charge, ink for printer... that kind of thing, and even landline bill as you can't (at least to my knowledge other than a wireless router thing) you could deduct that as you can't have internet access without a landline. So do the math and see what you end up with. They say the biggest red flag for a "self employed" status is deducting home space - yes you can and it is legal, but they zero in on that right at the first, so if you dont' absolutely have to use that as a deduction, they say don't include it.
