Online income… taxes
You do know that what you earn online is taxable, right?
It’s different in different countries - here’s a good summation of US tax laws - but people who work for themselves can get into very complicated tax situations. The comments on that linked post also contain some interesting insights - and a couple of very good questions.
In addition to all that, I’ve heard that I may need to pay estimated taxes on a quarterly basis. I’m still looking into that.
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Bonnie Said,
June 20, 2007 @ 5:28 pm
I think the quarterlies depend upon how much you make. If you have a really low level of income, you may only need to pay them annually. Exactly how much it is is probably available on the IRS site. You’d be amazed too, at how helpful both your local IRS and your local department of Revenue (who may require a cut if you are a legitimate business and not a hobbist) can be if you start asking questions NOW so you can do it right!
Sapphire Said,
June 21, 2007 @ 2:56 pm
Yeah, they’re probably more helpful now than they are as it gets closer to April.
I think I may just need to have a payment in by the end of the third quarter. I still need to consult with somebody to be sure, but that’s what I’m getting from the reading I’ve done.