Tax Information

Was wondering a few things

[modega]

I am now making a few hundred a week of my site. And clickxchange does not mention anything about taxes. From a few of you experienced webmasters (I'm only 4 months into this game) what do I need to do Tax wise?

I am already keeping track of my revenue. I really do not want to break any laws and want to be legitamate.

Can anyone let me know what I need to do?

Thank you in advance.

[Web Footed Newbie]

Welcome to WebmasterWorld, modega.

In the USA, and most other countries, taxes are paid on profits.

Revenue minus expenses = profit or (loss) if expenses are more than revenue

And in the USA, this would probably be considered self-employment income. You will need to pay your social security taxes also. Go to the IRS website.

Hope that helps, WFN

[peterdaly]

In the US, self employment income is report on Schedule C of your personal tax return. Depending on the amounts involved, you are required to file quarterly payments to the IRS. The IRS web site has a fair amount of information about how to deal with self employment income.

If you have never filed quarterly before and are in "couple hundred a week range" ($10.4k/yr), I would bet you will not be penalized for not paying quarterly this year. You will probably be required to file quarterly for the 2004 Tax year. That being said, I don't know your specific finacial situation, and am not by any means a Tax or Financial professional.

Look into the specific laws for your state as well...I can't help you with that one.

Additionally, it may be worth your while to either hire an accountant or purchase small business accounting softwate. I got QuickBooks, and found it worth every penny.

Go read up, and/or see a tax pro.

[modega]

Thanks for the valuable input. Im starting to love this community more and more everyday.

I did a little searching on the IRS webpage, and came up with this.

[irs.gov...]

Can anyone confirm this is indeed the link to the correct tax form I need?

My information is I am netting a few hundred a week profit, I live in Maryland and I think that will be enough to decide hopefully.

Thanks for the help.

[beckie]

It might be better to ask an accountant in your area with any tax-related questions. They can answer any questions you have and can give lots of pointers. (if you have to mail something out that is for your business, stop at the grocery store and wherever else you need to go for errands and write off that mileage).