When it comes to online earnings on taxes..
By LouieWpHs04
@LouieWpHs04 (4554)
United States
August 20, 2008 7:08am CST
So I was just wondering, when it comes to online earnings on taxes, how exactly do you go about doing the taxes for them? 
Such as let's say someone's added efforts from a multitude of sites added to be uhh. $3,000 in a calendar year. 
According to the IRS's site you have to fill Self-Employment taxes out once you hit above $400 income in a calendar year. 
Would something as simple as a Paypal Payment Log printed out or an actual log sent by Paypal in the mail itself suffice to show where you made those earnings? Orrr! Do you actually have to go to all the individual companies you've earned from and get some kind of further proof that they're in fact the one's that paid you? I know that once you hit a certain amount of earnings on a given site, they send you some kind of tax form that you fill out but yeah. What about all those sites that you may earn very little on, but added together could result in a decent amount of money within a year's time?
Also, other then SE taxes, what other taxes would you have to pay?
I'm not refering to Local & State taxes as they obviously differ from state to state and place to place.
Thanks to everyone who can help!
Such as let's say someone's added efforts from a multitude of sites added to be uhh. $3,000 in a calendar year. According to the IRS's site you have to fill Self-Employment taxes out once you hit above $400 income in a calendar year. Would something as simple as a Paypal Payment Log printed out or an actual log sent by Paypal in the mail itself suffice to show where you made those earnings? Orrr! Do you actually have to go to all the individual companies you've earned from and get some kind of further proof that they're in fact the one's that paid you? I know that once you hit a certain amount of earnings on a given site, they send you some kind of tax form that you fill out but yeah. What about all those sites that you may earn very little on, but added together could result in a decent amount of money within a year's time?
Also, other then SE taxes, what other taxes would you have to pay?
I'm not refering to Local & State taxes as they obviously differ from state to state and place to place.
Thanks to everyone who can help!1 person likes this
2 responses
@cotton0821 (259)
• United States
20 Aug 08
If you decide to report internet earnings, you will find that you have to earn a lot before you pay taxes. Your internet connection, computer supplies and a possible deduction for a home office can cancel out several thousand dollars of income.
2 people like this
@flowerhorn (1008)
• Malaysia
20 Aug 08
I wouldn't bother with the earnings that come up to a few thousand dollar a year after adding in all the incomes from a variety of sites. Let the IRS worries on this one. It is their job!
2 people like this
