Making money online and taxes

I don't know about the US regulations specifically but most countries have very similar legislation. Yes, you should technically declare ALL your earnings. On the other hand, if you were to register as self-employed (which you would be if you are making all of your income online), you can legitimately claim all sorts of expenses - heating, lighting, ISP charges, computer depreciation, stationery, postage, phone calls, any necessary literature/tutorials associated with furthering your business, accountant's fees, banking charges ... you name it, if it is a legitimate expense, you can claim for it. Probably the best place to start is the IRS website itself and then to search for information on setting up as a self-employed business. It is always a good idea to find yourself an accountant quite early on. The information and advice you can get from a short introductory session (which might even not cost you anything) can be invaluable. Whether or not you intend to borrow money from a bank, it is always a good idea to make yourself a business plan. It is really the only way in which you can reliably and demonstrably measure the success of your business.