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Paying taxes on your advertising revenue?

WabbyTwax

WabbyTwax

New Member
What are you thoughts on paying taxes on your advertising revenue? I'll be honest.. I havent paid any taxes on any of the money I've earned online. Should be seriously worried about the IRS finding out? Do all of you make paying taxes on the money you've earned a huge priority? Do we even HAVE to pay taxes on the mone we earn from online advertising? What can happen if we don't? Some of the money I get comes from companies out of the country like Canada, do I have to pay taxes on this money?

Hope these arent too many questions but I really have been wanting to know what the whole situation with this stuff is. I'd love to hear how everyone else is approaching this.
 
i also do not pay taxes for the revenue, but I think it's ok as long you do not earn more than 200$ a month...

but there were also times when I earned about 500$/Month and I did not pay any taxes.
 
Where do you two guys live???? (country)

Okay wabby I see you are in USA......the IRA would be aware of your earnings, so I suggest you declare them!
 
IRA?

The IRA? haha what will they come blow up my car if I don't pay? heh sorry for the humor.

If the IRS is aware of my earnings why arent they asking for any taxes? How long does it take for them to say something about it? Would they make me pay all of the taxes I owed at once or would I just be able to make payments? Even If I were to pay the taxes on it.. how do I do it? I just send a check to the IRS and say HERE! ?

I probably won't bother with it unless they ask me for it.
 
the irs is not going to look at you unless you making lots of money... if you're worried about it just give the ad co's fake name/ss# :)
 
Originally posted by Woofcat
if you're worried about it just give the ad co's fake name/ss# :)
Click to expand...
Then you risk losing all the well earned money when they find out! :devious2:
 
Not paying taxes due under your social security number is one thing because you can just pay it back.

Giving fraudulent information to evade paying them altogether can get you a good bit a jail time not to mention the hefty fines.

And YES they do punish people to the full extent of the law for tax evasion!
 
Re: IRA?

Originally posted by WabbyTwax
If the IRS is aware of my earnings why arent they asking for any taxes? How long does it take for them to say something about it? Would they make me pay all of the taxes I owed at once or would I just be able to make payments? Even If I were to pay the taxes on it.. how do I do it? I just send a check to the IRS and say HERE! ?
Click to expand...

Exactly what a friend of mine said 5 years ago...guess who came knocking on his door just a few months ago? You guessed it, the IRS and they had a nice little audit for him that made him pay 5 years of taxes PLUS alot of interest with that on top of it. I will probably take him about 5 years to pay them off.

The IRS is not to play games with. If you owe them enough they can and WILL take your home, car, and any other valuable assets that you may have...how do you think they get those government siezure home and car auctions? The IRS has no mercy...remember that.

If you are not sure what to do simply go to your local H&R Block or any other reliable tax consultant...it will be worth it in the long run.
 
So am I to understand then that there is no law saying revenue earned from the internet is not taxed? Or is there any kind of loopholes that any of you may know about when it comes to taxing online revenue?
 
It would be best to be safe than sorry and report all of your earnings whever it comes from...Now don't forget that when you claim your income from the internet you can also deduct your internet expenses too such as your hosting fees, marketing costs, internet connection fees, etc... so that way it will reduce the taxes that you would have to pay if any.
 
xpbargains,

If your computer was for your business, you will need to report it.

Whether or not you'll be taxed depends on when the computer was bought and the price which you sold it for.

The IRS will look at the price of the computer when you bought it, deduct depreciation for the time that you used it, and then compare it to your selling price to determine whether or not a profit / capital gain was made on the computer.

According to the IRS, I believe depreciation for computer equipment is 1/3 the original price per year.
 
I live in China (at least now I do). Would I still be hunted down by the IRS anyway for not paying taxes on my ad revenue?

Of course, that's considering that I even FIND a program that will support someone living in Asia. :rolleyes:
 
conkermaniac,

I would highly recommend seeking help from a tax professional for your scenario.

There are very specific laws on the treatment of American citizens doing work outside the US borders.

I know that if you're running a business that is registered in the United States, you will have to abide by US tax laws.
 
Why do you have to pay taxes for ad rev.?

That makes no sense...You dont have to pay tax when you get money from selling stuff on Half.Com? A while go people said they only tax you if you get more than 300$ a month, well how come companies dont just ask for the SS# when you get closer to that range?

TJ
 
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