For the US citizens, do you get taxed when you withdraw payment from mylot?

July 7, 2012 6:11am CST
Hi guys, just a quick question. My friend is a US citizen and he was just wondering if he could actually be taxed if he withdraws payment from paypal? thanks guys! i hope you could help me with this matter!
1 person likes this
1 response
@owlwings (39875)
• Cambridge, England
7 Jul 12
Some sites require you to complete a form for the IRS (I forget the number of the form) if you earn more than $600 a year. As far as I know, this simply tells the IRS what you have earned at the end of the year. No tax is deducted at source. At the moment, MyLot don't have any such system and all earnings are paid into your PayPal account with no deductions and the IRS are not told of your earnings. It is up to the individual whether they declare earnings or not on their annual tax return. Many, I know, do not but everyone should be aware that they are liable to be taxed on all earnings, whether they tell the IRS or not. That applies to everyone in any country that taxes your income (and I don't know of any that don't!) and it also applies even if you claim allowances which mean that you, effectively, pay no tax.
• Philippines
7 Jul 12
Thanks. i will forward your response to my friend. i hope he can enjoy mylotting with us. Thanks!