Hi All. Bear with me for this question (not even sure if I am in the right topic).
As an accountant I can't help but ask - do you declare your online earnings (whether from Hubpages or in freelancing sites) and pay the related taxes to your government? Why or why not?
I guess it would be wise to declare it on your tax form, if you are earning a decent amount that it would affect which tax bracket you fall into.
and I'm not in the U.S but google adsense has some tax procedure you have to setup when you first make your account , I didn't really read it but that might be worth reading through
It depends entirely on your country of origin. A lot of websites ask for tax information because they're based in the US, and US residents have to declare even small amounts of income. If you're not a US resident, you sometimes have to hunt around to find out what to do - usually there's some kind of declaration you have to make, saying you're not resident.
We have to earn a significant amount to pay taxes on earnings in Canada. I think it's over $3,000 a year and I haven't come close to that
In Australia you declare the income, but no tax till it is significant amount.
That's not what I was told, Earnesthub. If the income is derived from a hobby, you don't have to declare it. In fact, the tax office would prefer you didn't - because if you do declare it, you're entitled to claim expenses as a tax deduction.
Interesting how we've been given different advice in the same country!
Uninvited Writer and earnesthub, thanks. I guess it's different in your countries (lucky you). We're taxed here up to the smallest amount after what we call 'personal deductions' and these deductions are not really that significant.
Google will report your earnings to the IRS. They will also send you a 1099 at the end of the calendar year. Don't ignore it.
I'm not a tax accountant, but having been self-employed for 20 years I suggest filing a Schedule C and taking advantage of the deductions that might be available to you. You don't necessarily need to incorporate or form any type of partnership; you can file as a Sole Proprietor using your Social Security number.
Expect to pay federal, state, and local taxes on your earnings. If you make enough, be sure to look into quarterly payments. The IRS strongly prefers not to wait until April 15 of the following year to receive all their money. You will be socked with fines and penalties if you haven't been feeding the pig on a regular basis.
Don't take my word for it. Consult a tax accountant or buy a copy of TurboTax.
If you are in country where online revenue are monitored, then it is wise to register
I declare all my writing income and pay taxes on it. I do it because, even though I'm not rolling in dough, I do exceed the minimum for filing purposes in the US and I want a paper trail showing I actually do earn money. All kinds of situations come up in which a person might need that.
I'm trying to decide whether to take the home office deduction.
I've heard it flags you for an IRS audit if you're low income.
I am also wary of the Home Office deduction. I suspect that you will lose out on the back end when you sell your house; they sock you with taxes on the proceeds of the sale based on the part of the house used for business. I may be totally off the wall.
No that makes sense. Even though we don't intend to sell, that's another issue that I hadn't even considered, and you're right. I should do pretty well with just my standard deductions, so I'll probably pass, especially now that you brought up the back end thing with the house...
Hey everyone! thanks for your replies. I'm planning to declare my earnings this year and I basically just want to see if other people are doing it. I don't think our IRS-equivalent body here is used to seeing "online earnings" as part of our tax return .
Pam, good point. Here some of my clients who want to get a visa to travel to US have to show that they have income, otherwise, the US Embassy will not grant their visas. I guess having a losing business here is a red flag to the US Embassy people.
Yes, I pay ALL of the required taxes. Even though companies may not report affiliate earnings under $600 to the IRS, I report them on my Form C. And I take every allowable deduction.
by sid_candid6 years ago
How many of you live just from your online earnings. I mean your online earnings take care of all your expenses. Is it only from hubpages or other sites too?
by KyleBear6 years ago
Tax evasion is a numbers game. Let's take the hypothetical example of a braying young aristocrat who has an unearned income of £100,000 per year, this money being accrued through an offshore trust fund that his...
by Tony Lawrence5 years ago
Is nobody going to call Peter Schiff on his "I pay 50% tax" crap?Recently, Peter Schiff marched into OWS and confronted demonstrators, claiming that he pays 50% of his income to taxes. Unfortunately, the...
by IslandBites11 months ago
Do you think this small leak is a Trump's campaign strategy to kill the issue? Or, do you think this is only a preview of what's to come soon to attack him?
by GA Anderson22 months ago
Much is heard of a demand that corporations and the wealthy pay their "fair share" of taxes, but I have heard little of what that share should be.With only a single restriction; that the discussion is about...
by Susie Lehto2 months ago
Trey Gowdy posted this article link on Facebook minutes ago. It is the beginning of the end of Obamacare and a legacy.* http://thirdestatenewsgroup.com/breakin … d-to-know/The repeal legislation will go to...
Copyright © 2017 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.