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PayPal and Taxes

-I just begun

   
2:34 am on Nov 22, 2004 (gmt 0)

10+ Year Member



I have looked here for an answer and found none, so I will ask my question. Please help if possible.

I started an online company selling my own video games, software and clothes. I am using paypal to sell the items.

Now, when I sell items, come tax time how do I go about fileing this income?

Do I keep all of my records of sales and pay taxes on the income at that time?

Do I set the tax rate to my state and it's % and pay pal takes taxes?

Do I keep records and reciepts of items needed to produce and ship these products?

Again, I am new to this.

Thanks.

2:44 am on Nov 22, 2004 (gmt 0)

WebmasterWorld Senior Member whoisgregg is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Welcome to WebmasterWorld, morphosis!

You need to find out what your states tax laws are. Depending on the state, you may be required to charge a flat percentage to any orders shipped to your state, or you may need to charge different amounts for each county. (Plus! sales tax might be a sliding scale not an exact percentage. For example, a sale of $1.01 at 8% tax could mean tax of 8 or maybe 9 because of the extra cent.)

If you need a quick answer -- setup Paypal to default to charging the sales tax for your state when the recipient's zip code is in your state.

Don't wait too long to find out the exact rules for your state because you may be required to pay the state monthly or quarterly, NOT annually.

An accountant can answer all your questions for a fee or you can contact your state government for the answers for free. Most states publish this information on their websites.

10:57 pm on Nov 22, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Welcome to Webmaster World, morphosis!

What country is your business located in?

12:32 am on Nov 23, 2004 (gmt 0)

10+ Year Member



Thanks for the welcome :)

I am located in the US.
I create my own PC video games, Online Games, PC Software, Art, and Music. These creations were to pass time and make entertainment for my friends and family. Then I was told to try to sell some of it.

So here I go!

Thanks again...any tips!

12:08 am on Dec 21, 2004 (gmt 0)

10+ Year Member



I am pretty sure I gat it! :) I can not tell if people outside the US can get things though.

<snip>

Thanks for your help ;)

[edited by: lorax at 12:57 am (utc) on Dec. 21, 2004]
[edit reason] No URLs please. See TOS [webmasterworld.com] [/edit]

9:39 pm on Dec 22, 2004 (gmt 0)

10+ Year Member



Best to talk to your accountant.