earnings and taxes

Being neither a US citizen nor a tax professional, I can only say that in Australia you can claim back certain things that go towards earning an income. For example you cannot earn money from myLot without an internet connection nor a computer. So, if we had to pay tax on our earnings here (which we don't by the way), then we could claim back that portion of the internet connection fees that we spent here on myLot. Also the computer would be depreciated as well, so if we spent half of the time here at myLot earning taxable income then we could claim back 50% of the depreciation on the computer. If however the only things you do on the internet are for earning taxable income, then the total amount of both the internet connection as well as the depreciation on the computer would be deductible. The other thing is that if you have a room dedicated to earning on line, then a portion of your rent or taxes etc can also be claimed. So can the cost of phone calls if you are on dial-up connection. You might want to check these ones out as they might help reduce the tax even a little. :)

Right but I think you have earn up to $5 or 6 hundred dollars and then you have to report it.

I know from experience when I have used my Earnings online, etc. in reguards to what I get back from Taxes each yr. you are allowed to use a percentage of the Bills incured to gain that income if it is working from home. These are things such as: Your ISP expenses, Light Bill, Phone Bill if you are on Dial up or use a Cell Phone for Business, etc. Sometimes some of the software you purchase and other supplies can count as well. But you also might have to use your Computer at least 50% of the time for online earnings in order to qualify. This is actually something in reality, you need to talk with a Tax advisor about, and then go from there, as I am sure every situation could be different.

Yes you are right. It would be a tax write off, if it along with other deductions would be sizeable enough to do it. Most will take the standard deduction. That can be higher in the long run, so be careful that you dont cut yourself short by doing that if the standard deduction will save you more.

I think you probably could take that off. I haven't made enough to turn in though. I think you have to make around $600 before you have to turn it in.

Thanks. We do our own taxes and are just about ready to start. I have never made money online so I had forgotten this. I will have to remember it next year. I have not been on mylot long enough to get a check yet.

hi,even in india also we have to pay internet charges on hourly/monthly basis to government.after deducting the charges from my lot,we can arrive net earnings from my lot,if participate only in my lot like me.

When we receive $600.00 the site will fill out a tax form for themeselves, and then we must declare it. Otherwise, I don't think USA must claim it.

Well, I did not know that for sure. If I knew before we prepared our taxes, I would've added it to that. I will check on that for next year. Thanks.

Thanks for the tip, I had no idea. This will make it better when I file. It stands to reason that we would be able to take this deduction.

i work from home and yes you can deduct the internet expenses on your taxes as long as you are claiming the earnings from mylot. BUT you do have to claim the earnings from mylot if they are under 1200.00 bucks. that is my understanding at least.

Thanks for the information and I would surely keep that into account

The key to remember about making money online is there is a trail. The IRS will find out. Believe me the mylot people have to pay taxes too and our info is being supplied to the IRS as money went out to this person. They bring money in and they pay money it. We are part of their expenses. The same with e-bay. Our internet fee is deductible as well as the PayPal fee. E-bay fee too. It is an expense. Your printer ink is an expense also if you print out everytime you do a payout. I would suggest doing this. You would need to spend more time working and less time playing on the net to be able to take the deduction. Maybe keep an in and out log. Or if you have no other income and are spending 8 hours a day or more on the net then your earnings will show that as they will be higher. I have a tax man that I pay $10.00 every three months to and he figures my taxes for that quarter and I pay them then. He even supplies the pre-addressed envelope. All I have to do is write the check put a stamp on it and drop in the mail. And guess what, his fee is tax deductible. I also turn in all utility receipts at the end of the year and he is able to deduct a certain portion. Your business taxes should be done before your regular income taxes. If you lost money on the business it is a deduction on your regular taxes. A few years back we were having to pay in. Since I sarted a small home business we are now getting money back from both state and fed. Keep track, turn in records and you'll be surprised how much a tax man can be worth too you. And remember Big Brother is always watching! Dont get caught cheating.

thank god i'm not from the states :)

Well, if you check out the Tax forms now on sites like TurboTax.com and file your Taxes there thru them, you will see you can deduct a certain percentage of your Computer and ISP usage, but that is not the total of what you spend each month. It would be nice. And I think unless you make over a certain amount a yr. you cannot deduct on these? Or am I wrong?

i already deduct for my internet cost having home business you can take a portion of it.

This is true I am no expert. you can have deductions for making money even from the internet. you just have to file the right forms. the first year you can take a loss. but you need in following years to show an improvement.

I believe you need to make at least $400 to depreciate any costs of doing business and you need to fill out a Schedule C as well (sole proprietorship). You might only be able to deduct the time you are on MyLot as well if you use the internet for personal purposes as well.

i think its waste to collect

is tax neccessary for low class people?