Does anyone pay taxes on their earnings from their websites?

Do any of you guys pay taxes on your earnings from your websites? I think I'm going to be making a good amount of money from one of my sites soon, and just want to know what kind of process you have to go through for that.

 

Lolz... In India everything works.. if you earn $10,000 and if u dont pay taxes no one can ever catch you...
no idea 'bout US and other countries..
but India Rocks

 

I think most people who make a decent income from their websites pay taxes. If you don't pay any taxes you're taking a big risk.

I now have a company with limited liability, probably it's best to discuss this with an accountant.

 

It would help to know what country you are in - but yes, you need to pay taxes on the money you make. Programs like Adsense report their payments to the IRS and in the US you need to pay Social Security, State and Federal Taxes on your net income. The percentage depends on your tax bracket and can be close to 50% of your income at the highest level. There are deductions, such as equipment purchases, which can be used to help offset that liability - and is something a CPA can discuss with you.

 

In the US you need to report all income. Whether you need to pay taxes on that income depends on many factors unique to your situation.

 

what ever country you are on.. if the amount of the income generated from ebusiness (any damn method) is higher then the basic level to pay the income tax then be ready to get involved into the tax procedings as that may give the legal officials a chance to poke in and to disturb you.... better keep your place clean so that no one can question you for what ever you have earned....

 

You declare the income just like you would any other income. Hiring a professional to do your taxes is highly recommended, so make sure to save reciepts for domain names, web hosts, etc. Also make sure to set up a home office so you can write of a portion of your rent/mortgage payemnt, heat, lights, etc.

 

That's not right, people staying in India do pay taxes. My friend earn appox 70,000$+ permonth and does pay taxes. and It officers do catch hold of people not paying taxes.

One must be honest and pay the right taxes.

 

In the US - I only pay taxes on the days I don't want to go to jail

 

haha yes, I do that exact same thing! That seems to be every day though.


I have a business license and a business bank account and keep all that stuff separate from my normal finances so it is much easier to track.

 

I let it ride until I made enough money to justify it. I've had many web ventures that didn't pan out. Fortunately, this latest has worked very well. I figured I'd avoid tax evasion and file taxes...I've had to hire a CPA firm to handle our monthly reporting. Do I like it? Heck no, but it's better than prison..

 

If you make over $10,000 in a year on your website then yes you need to report it, if you don't, and if you are caught,(if someone snitch on you) then you will get fines, and you will go to jail.
Less than $10,000 you don't need too.

 

My accountant confirmed that all of my advertising income and all of my links income and all of my SEO services income are tax free due to the services I provide are regarded as exporting outside of Australia. All exporting income for Goods and Services are tax exempt. Yippee!!

 

If you live in the US u better pay your taxes on mone you earn from internet i read an article the other day aobut cracking down on getting tax money due from people selling goods on ebay and websites.... If you earn it... better pay taxes on it.


I reccomend a seperate account makes things much easier this way.

 

I recommend speaking to a qualified tax professional in your country of residence. Taking advice from a forum is not probably not too wise.

No disrespect meant to DP'ers.

 

Where did you learn this? Is this really true?

 

A tax professional can also help you maximize your returns, exemptions, etc.

 

Man, sounds pretty heavy to do business in USA as a resident!!

 

The best advice thus far IMO..

If you don't know, consult, consult, consult.

 

Yes I do. You do not want to mess with the swedish government . . .

//Andreas