2005 was my first year of CJ income. Can someone explain how this type of income is handled as a sole-proprietor in the USA? Will we receive a W2 or 1099 from CJ? Thanks in advance.
skibum
4:09 am on Jan 22, 2006 (gmt 0)
You'll get a 1099 from CJ as an independent contractor if you got more than $600 in payouts. You'll have to report it to the IRS and can then generally write off hosting, domains, advertising, etc..Best to talk to an accountant and this should not be interpreted as financial advice. :) You get to pay local, state, federal and the entire social security (self employment) tax on it if you don't have a real job or other income that already puts your income above about 80k.
FourDegreez
4:14 pm on Jan 22, 2006 (gmt 0)
Can anyone answer, at what point does the gvt. expect to receive quarterly tax payments?
bweebco
6:51 pm on Jan 22, 2006 (gmt 0)
Talk to an accountant, I believe its when you make over a certain amount but your accountant will know for sure.
skibum
7:24 am on Jan 23, 2006 (gmt 0)
I think the first year I made about 5k profit and ended up getting hit with some penalties for not making estimated payments.
voices
1:15 pm on Jan 27, 2006 (gmt 0)
Check out schedule C and C-EZ at the IRS site. [irs.gov...]
beejay34
4:35 am on Jan 28, 2006 (gmt 0)
This sucks because 2005 was my first year in the Adwords game. I only made about $620 the whole year so I'm kinda lucky I won't owe the IRS a crap load of money. But does anyone know how to avoid receiving that "you owe us" letter from the IRS when it come to affiliate income. Should we deduct state, fed, soc sec and medicare from each payment and just send the IRS a check or put it in a seperate account and wait to get that you owe us letter from the IRS.
voices
2:59 pm on Jan 28, 2006 (gmt 0)
You just list the aff income on your regular tax return and pay your taxes on time. By the time you get a you owe us letter you could owe a bunch of penalties and interest!
