A second attempt at a first discussion
By SomeCowgirl
@SomeCowgirl (32190)
United States
February 21, 2009 3:54pm CST
I know that it has come to the attention of a lot of mylotters about taxable income and how much one must make online before they have to file. I have yet to find out how much one must make and would enjoy people's opinions on this issue. Before responding though I would like to give a few guidelines as to be fair in letting you know of which I am really interested in.
THE USA and TAXABLE INTERNET INCOME. That is really all that I want to know. How much should a person in the United States make online before having to file, or does one have to file? What would they file under? What would the appropriate forms be?
Again although I will appreciate anyone's input I would greatly appreciate an answer to my above questions.
Have a wonderful time mylotting!
3 responses
@the7elements (49)
• United States
21 Feb 09
It doesn't matter where you make income, the IRS sees it ALL as taxable if you make a certain amount. I live in PA and believe that if you maker $33 then you are required to file for PA state. The federal tax is $400. Many people wrongly believe that if you don't recieve a 1099 then you are excused from paying tax. ANy income that comes in, whether it be self-employment income, gamblings, or even a cash gift amount is an taxable income. The government really wants their money. :(
@SomeCowgirl (32190)
• United States
21 Feb 09
Hmm thank you alot, I hadn't really thought about looking at NC's income tax laws and such, but I appreciate it. $33.00 that seems like so little of an amount, I would hope that that wouldn't be taxable, wouldn't you be basically giving the money to the government? I am tax illiterate, lol!
@owlwings (43907)
• Cambridge, England
21 Feb 09
I think that the point is that if you have income already, besides anything you earn online, then your online earnings are added to that, so however little you earn you will have to pay tax on it.
It's true, though, that most tax authorities want ALL income to be declared (even that which isn't taxable - in the most UK gambling profits are exempt - or on which tax may have already been paid, such as interest on savings).
@the7elements (49)
• United States
21 Feb 09
I just doubled checked in my PA state booklet and sure enough if a PA resident grosses $33 a year, even if they don't have to pay in tax, the state still requires a person to file with the state.
And if you are making money online then you are pretty much an independent contractor/self-employed and you have to pay in social security, and file a 1040 form, a form for social security, and a form for being self-employed. The government really makes it complicated when it comes to taxes. ;)
@cynthiann (18602)
• Jamaica
21 Feb 09
Hi SomeCowgirl! Can't answer the question but just stopped by. Have a great weekend
1 person likes this
@SomeCowgirl (32190)
• United States
21 Feb 09
I know, all this tax stuff is so different, and when it comes to different countries and such too! lol! You have a great weekend as well!
@owlwings (43907)
• Cambridge, England
21 Feb 09
I think that it is $600 a year before you need to complete a 1099. Many sites have a limit of $500 at which point they need your details to verify in order to be able to send you the statement of earnings form (the number escapes me at the moment).
Of course, if your earnings are piecemeal from many sites, you may escape the IRS for a while but do be aware that PayPal have, in the past, been forced to disclose the details of some of their clients.
If you are earning online you are usually classed as 'self-employed' for those earnings. I don't know how the IRS deal with that but you certainly ought to be keeping good accounts long before you think you may need to apply. I am not sure about the US but certainly in the UK, if you are working from home, you can legally claim many expenses, including heat, light and power for a proportion of your household bills based on the floor area proportion of your 'office' in relation to that of your home.
@owlwings (43907)
• Cambridge, England
21 Feb 09
You may be interested to read this discussion of a year ago. The discussion owner says several times that she got a 1099 from one company because she earned over $600 from them. There may be other information you would find useful, too:
http://www.mylot.com/w/discussions/1400506.aspx#down_pZEneDrmd2zl9Rs0KYhRJJ8cWFcJzeoUWNbdVKEIFXQ%3d
1 person likes this
@SomeCowgirl (32190)
• United States
21 Feb 09
Thank you for all that information I am trying to gather as much as I can from different places to see what My fiance and I would have to pay. I'm looking through the discussion you suggested now and so far it seems helpful, I appreciate you looking that up for me! We want to find out as much information as possible as we hope to maximize our earnings here but want to know what we'd have to pay in to the government!
If you find anything else feel free to tell!
