Do we have to pay tax for earning in mylot?

@Hubfee (665)
Thailand
January 19, 2010 5:43am CST
Since we earn money here, don't we have to pay the tax? I heard from my friend about earning online for many years and received the notice of tax payment which was quite a lot. Of course tax is a smaller amount than the earned money but for many years, people spend the money they earned without knowing that they have to pay the tax and because of their ignorance, therefore the problem occured. So, do we have to pay tax? Have anyone heard about it? Or it's just an April fools day?
11 people like this
34 responses
@mysdianait (65079)
• Italy
19 Jan 10
Any earnings from online sources are classed as income but laws vary depending upon where you live. You should be aware of them by checking the limits and restrictions in your country. There are many Lotters who complete the tasks here and earn large amounts and they have to declare their earnings. This might answer some of your questions too. : http://www.mylot.com/w/discussions/2067952.aspx
1 person likes this
@Hubfee (665)
• Thailand
19 Jan 10
Thank you so much mysdianati. You've been helping us out from ignorance.
@mysdianait (65079)
• Italy
19 Jan 10
I was ignorant too, and still am about many things. None of us are born with knowledge of anything I saw your comment on a previous response. You should see what the laws are in your country but I guess that for a few months you need not worry about this matter. Just think about having fun and posting here and then when the payments start arriving you can follow up about such matters Thank you for the BR and I am happy to have been able to help.
1 person likes this
@callarse1 (4786)
• United States
20 Jan 10
That is right. You gave good answer for USA. However, the poster was talking from Thailand, I would have no idea. You're supposed to report all non-taxed income, BUT a big EXPECTION is, if the money totals under $600 then the company isn't reported it to IRS in USA. No one knows that you were paid. If you didn't keep a running total of each of your online income it would be hard to put it on your taxes. Most people I know don't bother reporting it UNLESS companies sent them tax form that they reported it to IRS. I highly doubt that IRS would be going after someone for not paying $60 or so on taxes.
• United States
20 Jan 10
Always assume that any money you earn is technically taxable. If your income is not high enough, you don't necessarily have to pay taxes, but you should make sure of that by consulting a tax professional. Remember, if you have another job, earning online gets added on top of that. The government doesn't treat each income separately. It doesn't matter that you are paid via the Internet or that you doing work "online." You are being paid by someone, which means you are earning money. The government will always want their share. Do not listen to people who say that Internet earning is free just because it seems like it should be.
1 person likes this
@callarse1 (4786)
• United States
20 Jan 10
Yes, that's true but in USA, any side income won't be reported to IRS if it's not over $600. Most companies don't report it unless your income was over $600. I'm not advocating to be dishonest. I'm just giving you a realistic situation...if you're doing 10 programs online for extra money and you never made more than $600 per company, would the average Joe keep track of all that income? Probably not, therefore he wouldn't have accurate number to put on taxes. Since it wasn't reported to IRS, no one "knows" Joe was paid. I'm not advocating to be dishonest, BUT, I assume that the average Joe WOULD NOT report on taxes unless he got forums in the mail advising that it got reported to IRS.
• United States
20 Jan 10
I certainly get what you are saying. I'm not sure what active members of MyLot make, though there are other sites where people might make more than $600 per year.
@aerous (13461)
• Philippines
20 Jan 10
I think it depend on the government that we have. We are living in different countries and I think by laws is not bound by any political institution to impose taxes in online taxes because the owner or admin itself pay taxes on it's own... Like us we need to pay taxes depending on what we declare being an annual income set by us...
@Hubfee (665)
• Thailand
21 Jan 10
I see. So it's depend on the government in my country. I was confused before twhen I heard that I have to pay tax to the country where I earn and to the country where I am belong.
@aerous (13461)
• Philippines
22 Jan 10
No...My friend, you can't do that because this is not a matter of business affairs. Mylot do everything and do not have to worry on that particular concern. If your regularly pay your taxes you can include it in your income as well but if you can't include it no one will force you to do so...
@Hubfee (665)
• Thailand
24 Jan 10
I see. So, paying tax is like volunteer. Free will to pay.
@derek_a (10897)
20 Jan 10
I am self-employed and run my own business. I have to declare all earnings on my tax forms each year, and that does include myLot. I don't think it makes any difference to the tax I already pay because myLot doesn't pay a huge amount of money. - Derek
@Hubfee (665)
• Thailand
20 Jan 10
Oh? So you also pay the tax for the earning from mylot?
1 person likes this
@Hubfee (665)
• Thailand
20 Jan 10
To whom did you pay the tax? The UK government or US or both?
1 person likes this
@mysdianait (65079)
• Italy
20 Jan 10
You pay the taxes to your OWN country, the country where you are resident, regardless of which country is paying you. I am in Italy. I hae a full-time offline job, I also do some occasional work such as translating and interpreting and I earn online. At the end of my tax year ALL these earnings are pooled together and I pay tax on the total. During the year I pay taxes on my wages from my offline job each month but if, and ONLY if, the total amount adds to up to a lot, I have to pay an extra amount too. These are the laws here. Each country is different.
1 person likes this
@benny128 (3621)
19 Jan 10
well any income that you receive you should pay tax on it, and mylot is no different as it is personal income that is being paid. Though to be honest the amounts are so low I don't think the irs or tax agencies will be that bothered as it is really only small amounts of money. But if mylot ever got asked to submit the earnings of its members then they would have to by law, and if the members were ever investigated then they may have to pay back taxes depending on how much they have earned
@mysdianait (65079)
• Italy
19 Jan 10
Those doing the writing tasks reach high amounts sooner than those who only stick to the discussions Do you remember this last year? : http://www.mylot.com/w/discussions/2067952.aspx
@Hubfee (665)
• Thailand
19 Jan 10
Hmmm I agree about paying tax when there's an earning income.
@benny128 (3621)
19 Jan 10
cheers lamb here in uk we have to declare everything can't talk for other countries. But in uk we have to disclose everything and show that the income is below our tax code.
1 person likes this
@jdyrj777 (6543)
• United States
20 Jan 10
I think we earn way too little here to make any difference in the tax world. I believe you have to earn like $500. or so a month before taxes are taken. i think its safe to say that exceeds the pennies we earn here.
@jdyrj777 (6543)
• United States
20 Jan 10
I think beggers on the street earn more than we do here. i wonder if they are paying taxes.
@Hubfee (665)
• Thailand
21 Jan 10
AH!! so the beggers are the Tax evaders! LoL
@mysdianait (65079)
• Italy
21 Jan 10
There are MANY Lotters who do the tasks. One task a day at $4 adds up to $120 a month. Some do more than that amount. I doubt if beggars make that sort of money
@hagirl (1296)
• United States
23 Jan 10
I believe it is like any other work you do on the computer a 1099 form has to be filled out for proof of self-employment..... Not this job but other jobs you can take off some receipts for printer ink, pens or any other supplies you buy to perform your job adequately.
@Hubfee (665)
• Thailand
24 Jan 10
I see... so there's no any evidence for earning in mylot?
@hagirl (1296)
• United States
24 Jan 10
It is like anywhere most of the taxes you pay in a year one gets back at the end....they take that tax money that you pay each paycheck and draw interest on it .. the only taxes you do not recover at the end is mostly what you pay in to the local and medicare the rest is mostly recoverable.....
@Cutie18f (9560)
• Philippines
20 Jan 10
Tax? With the little amount we are earning here? I don't think so. Somebody is making it up. The extra charge is deduction from Paypal. Paypal charges for using its services so you don't get the entire amount because of this.
@mysdianait (65079)
• Italy
21 Jan 10
It pays to read previous responses before posting your own If you do a writing task here, worth $4, every day for a month you would earn $120. Multiply that by 12 months and.... Take a look here at what myLot informed us last year when several Lotters had exceeded a certain amount in their earnings. : http://www.mylot.com/w/discussions/2067952.aspx
@Hubfee (665)
• Thailand
21 Jan 10
But that's the service fee from paypal. Isn't it different from the tax from government?
@writersedge (22577)
• United States
20 Jan 10
I claim it in order to claim a tax deduction. I don't make as much as my payment to run my internet. But I think you can only do that for three years. After that, it's a hobby. Most people on Mylot don't make enough to have much worry about an income. $10 x 12 is $120 (if they make that much)and that isn't going to put them into a different tax bracket. My accountant says anything "findable" and over $30, he reports. Mylot is findable by the government.
@writersedge (22577)
• United States
20 Jan 10
For example: I'm in the USA, I made $100 at Mylot one year, but I spent $30 x 12 = 360$ on my internet service and I spend about 1/3 of my time online trying to make money. So $120 of my dollars went to make $100, so I operated at a loss and here, when you operate at a loss, it can be a deduction. But that depends on where you are and I see you aren't from the USA. I would find someone who knows about taxes in your country, just like I had to find someone who knows about them in mine.
@Hubfee (665)
• Thailand
21 Jan 10
Oh, I see. Thank you so much for your advise writersedge. Hmmm so mylot is findable.
• India
19 Jan 10
Are you joking or really asking this question? I dont feel one can not earn a much amount through mylot or other online sites. For example if one receive $10 per month you can earn earn $120 per year. But its a very small amount when compared to the incometax limit. In my country (India) one need to pay when earnings reach (1,50,000 INR = $4000 ) So no problem, Income tax department will ignore this cases because they have more work to do with business people. so enjoy your online earning. But if you reach the income tax limit, then consult your local auditor.
@mysdianait (65079)
• Italy
19 Jan 10
If you complete one writing task worth $4 every day that will add up to $120 in one month. In one year that will be well over the minimum amount at which you are liable to pay taxes in many countries. You should check your local tax laws to be certain of the minimum amount.
@Hubfee (665)
• Thailand
19 Jan 10
I see. But in my country, there's no certain thing to assure me that I won't get the notice that's why I am curious. hehe
@smacksman (6074)
19 Jan 10
Theoretically you should declare all your earnings to your government and then be taxed on those earnings. Therefore you should let your government have access to your Paypal account to prove your earnings. Please, no one is having access to my Paypal account!! If your Paypal account was really huge and the government found out (you bragging online?) then maybe they could get a court order to force Paypal to open your account. For most of us the odds are pretty small so sleep soundly.
@Hubfee (665)
• Thailand
19 Jan 10
Which government should I declare to? my country or the US.?
• United States
20 Jan 10
Your country is the only country you have to report to.
@shanrox (382)
• United Arab Emirates
19 Jan 10
No i am pretty sure that you don't need to pay anything as tax to your government.Because mylot pays you through paypal and no by check.happy mylotting friend.No one isgoing to have fun with your money,lol...
@Hubfee (665)
• Thailand
19 Jan 10
I think you should read the link from "msydianati" the comment above. I'm still confused a little bit but it seems we really have to pay the tax.
@benny128 (3621)
21 Jan 10
if any of the tax agencies ask mylot or any other earning site for a list of monies earned by its members mylot is obliged by law to give that information so better safe than sorry declare your earnings it most prob won't be over the tax threshold but if your above board then you have nothing to worry about even in 20 years, same as paypal they have to give information regards to earnings there was an instance few years ago with e-bay and paypal the uk tax office got a list of e-bay of people who were selling so many items a week and also got information off paypal and there was a few high profile cases in many of the national papers of e-bay sellers being caught not paying tax and then the tax authorities hammered them. The only 2 people in the world everyone needs to be scared of is the tax man and the vat man.
@nautilus33 (1831)
19 Jan 10
HI! No, have not pay any taxes to earn on mylot. It is free to join and it is also free to earn :) you don't have to pay a penny for nothing, you just have to pay your internet tax, if you want to earn something from here and also must be very active and post quality responds and discussions too!
@Hubfee (665)
• Thailand
19 Jan 10
internet tax? is it the internet payment? or there's really tax of internet?
• United States
20 Jan 10
everyone should check into what they have to pay, most areas that have an income tax system has to report earnings, here in the sataes we have to report anything over $800 per year as income, so check before you listen to people who tell you not to pay taxes. I don't like taxes either but if I dont pay they can impose interest on what you owe and then would pay three times more then I earn or more.
• United States
24 Jun 10
I live in the US and my cousin works for the IRS. I know in Idaho that if one makes less than 600 then it is not taxable. Anything over 600 is. I thought the same thing that I had to pay taxes and my cousin told me no. I would check with your local IRS office.
• United States
28 Jun 10
but would that be as your income as a whole being over 600 from all sources or just per source?
@dorannmwin (36656)
• United States
22 Jan 10
I don't think that you are required to pay taxes on money that you earn online as long as it is less than a certain threshhold for each place that you "work" for. I think that the amount is more than I would be able to make from a single place in a year, but I could be wrong. The thing that makes me wonder about mylot is I have never seen anything where you had to verify your location or your tax-payer indentification. However, on another site that I work on they make you verify the information when you reach that threshhold.
@Hubfee (665)
• Thailand
24 Jan 10
I see so the threshhold is the standard of paying tax. Then I have to check the threshhold fisrt. Thank you so much dorannmwin. It's really very good information.
@tjburcham (690)
• United States
21 Jan 10
I know of some sites that require a 1099 form for income because that's the way they see the law. I think but am not sure it would all depend on how much you make from a site. I think that in my state you have to make 400 a year before having to file taxes. So you might want to check with your state if you are concerned with this.
@Hubfee (665)
• Thailand
24 Jan 10
Ok i'll check it out. Thank you for very nice information.
@jezzmay (1845)
• United States
20 Jan 10
I have heard if you make $ 600. dollars you have to pay taxes on it. I have been members of other sites that tell you this, and will send you a tax report. I have been told that you need to report it if you make $ 600. or more. If you are making this kind of money I would check into it. That would be better than getting caught not paying taxes. Have a great day.
@Hubfee (665)
• Thailand
21 Jan 10
Ok thank you. You too, have a great day.
@littleowl (7157)
20 Jan 10
I have never actually known if you do have to pay taxes on your earnings here, especially with the exchange in the UK really the amount we earn is less than $10 when it comes to pay day in our currency so it wouldn't be worth taxing so have never thought about it...LoLo
@Hubfee (665)
• Thailand
21 Jan 10
So it is the power of currency LoL
• India
20 Jan 10
Tax is calculated on the total amount from all sources. We do not earn much on online.Many cases tax may not come. In some cases it may be very meager amount. For those who earn more than taxable income they have to pay tax.
@Hubfee (665)
• Thailand
21 Jan 10
Hmmm so it is something like the sum of income(from every sources) and then calculate the tax on the total amount we earn, isn't it? I thought there are differnt percentages to for calculating for diffrent kinds of businesses.
• India
20 Jan 10
I think the earnings are so small that the tax authorities would take no notice of it.
@Hubfee (665)
• Thailand
21 Jan 10
That's what I used to think until I heard the story that's why I'm confused if we have to pay the tax for earning in mylot. I don't want to get fine for the income accumulated in mylot then bang! a big amount tax. I think, mylot website will be popular one day and it'll be a stable website that will also stay like this for many many years after. The mylot population is increasing everyday.