Question about US taxes

Someone told me that you don't have to pay taxes for income that goes into your bank account if it's less than $9,000 per month. Is this true?

I'm considering opening a US bank account through a citizen for my business so I need to know about this.

Thank you.

 

well thats not exactly true. The bank doesn't have to report any income of less than $10,000 to the IRS. It's protocol for us banks to report deposits over $10,000. The IRS can still audit you at any amount of money. especially if its reported by the company that pays you and you dont pay taxes on it. Most companies will report any income paid out and who they paid it to so that they dont have to pay tax on it. The IRS can come after you if you dont pay.

 

What exactly do you mean by "through"? If it is their social security number, their name is on the account papers, etc. then the IRS is going to assume it is income to them. To stay out of trouble I suspect they would need to set the arrangement up as a business, report all income, show payments to you as a business expense and file a business tax return.

 

I believe it should read 'transaction' instead of 'income'.
Try to choose a bank that doesn't require SSN. There isn't too many. I believe Apple Bank is one.

 

I need to have a bank account in the US for my online business. Since I'm not a US citizen and don't live in the US, my close friend who is a US citizen offered me to open a joint account with her so that I CAN open an account.

So I was wondering if I'll have to pay taxes for my income that goes into this joint account?

 

First - to be clear, this isn't meant to answer whether you SHOULD report income or not but rather an unbiased answer to your question from a US company's standpoint.

Generally, if the company paying you this income is based in the US, they report this to the IRS as 1099 Income and list details of the recipient - such as name, social security number, address, etc. Companies are not required to report income paid if it meets one of the following circumstances; 1) the income paid is less than US$600 to the recipient annually OR 2) recipient is a company with a EIN number (provided by the IRS for all registered companies)

If the company does not ask you to fill out a form (either to gather info for a 1099 or require your EIN number) before making payments to you - there is a good chance that they won't report the income. Some companies don't want to hassle with reporting this and sending out year-end tax forms and they just list payments made as expense items on their financial statements.

 

If you're self-employed and make more than $400 a year, then you must report it.