Should I Report My Income To The Irs?

I am currenltly generating some income from a couple of websites I have and ebay.

I make enough to pay a couple of bills every month.

Do I need to report this to the IRS.

I have been in the USA for a couple of years now and I am a good web programmer and I make some cash from adsense and ebay auctions but I am afraid to get in trouble if I dont report it to the irs.

Any advice will be highly apreciated.

 

if it is more than US $10,000 per year. Yes. If not I wouldn't sweat it, unless someone is reporting the income they paid YOU to get it off their taxes. They would have to do a 1099 form and you would have had to provide yopur social security # so you would know if they are reporting it.

 

Have fun the next time you get audited if you dont declare it. I would suggest talking to your accountant about this, a webmaster forum isn't a good place to get info on personal finances. Good luck...

 

If you get a 1099 from anyone (a la Google Adsense) then you have to report it. If it's link sales and side money etc. then nobody would know if you didn't. Now, with that said.. I suppose it depends on how much. If you're rolling 10k a month into your bank account and the IRS thinks your unemployed... expect some drama.

 

edited for tax reasons

 

doesnt matter how old you are, if your earning you have to pay, and no in general the ir dont check your bank account.

however it depends how much your talking about if say your earning an extra 1-2k on top of your wages a year then i dont think they will bother if its thousands then they might look into it

 

Age doesn't matter. No the IRS doesn't monitor bank account info... but if you get audited you can be sure they'll check your banking records. Also, if the banks see anything suspicious they have to report that for Homeland Security reasons.

The US isn't Nazi or anything. 99.999% of the time you can fudge whatever you want. BUT - sometimes random audits are made or if anything looks suspicious (tax fraud) your libel to get an IRS visit.

Everyone should file and claim what they made. Then pay taxes on it. It's the American way

 

Well in that case Shannon, I dont make any money currently just for the record

 

I love Texas People are just nicer here...

Yeah Shannon,

I have never had t do taxes before but I think I'm going to have to do some this year my dad has been annoying me about it so I guess I must do it, so how does it work you tell them how much you made and they tell you how much you pay?

 

You report your income. Say for example $10,000. Then, by filing taxes you get some standard deductions. Not sure what the tax brackets are this year, but they'll be around $4,900 for filing single, and $3,200 for claiming yourself (if your parents don't claim you).

SO, $10,000 - $4,900 - $3,200 = $1,900 in taxable income. Tax bracket for Federal would be probably 10% so roughly $190 in taxes. BUT - that's 10k PROFIT, so you can deduct on your schedule C for expenses and such to drive that taxable number down (ideally below $8,100 wink wink).

It's alittle more complicated that that, namely adding in self employment tax if you didn't earn a regular paycheck and had social security tax taken out. Then you also have state taxes which aren't much.

Most likely, if you profited under $8k you won't have any taxes to actually pay so long as your claiming yourself (you mentioned your parents, and they can still claim you and would probably be in their best interest to do so until your 18 or 25 if still in school).

 

ow that sucks emil Your gonna have a nice time especially because you dont have any dependants ;o

 

Hi,

You should report everything to the IRS especially the ad sense as you will receive a 1099-misc for it as for your Ebay that also you "are" supposed to report it as well though most don't (of course the IRS tax laws says you are to report $1.00 if you find it on the ground to. ...But how many people really do that? None that I know of.)

If you have anymore Tax related don't hesitate to ask.

 

I kind of get it now so there are ways to reduce the amount they tax on...

See there is this Haggard family in my city who are extremely rich and they have this huge ranch in the middle of the city and my brother told me its for a tax break since technically they are ranchers which means they get a reduction, so I think Im going to go buy some chickens and sheeps

 

Of course you should report it. Maybe the IRS will not noticed it, but what if...

 

i have questions too.
a few years ago i was convicted of 4 felonies for selling drugs. i made a nice chunk of cash doing that and obviously i blew it all on partys, drugs, girls, clothes, trips, jewelry, and mass amounts of other pointless junk.
but since i got arrested/jailed/probationed/ and finally house arrest after i violated probation, i have been doing good and thus came across the whole SEO and webpage stuff, i love it.
however, i pull 2-3,000 bucks off a personals affiliate per year plus now im doing $30-$40 per day with adsense, the thing is, adsense takes money out for taxes and im really worried about this. i havnt filed/paid taxes in like over 3-4 years and im scared to file now because they will be all over me for not filing in the past years. and the longer i wait the worse the fear gets.
i dont even know why im posting this, i need to go to one of thoes webage confession sites or something i guess lol

=X

 

you should be ok if you did not have 1099's. Go ahead and file and pay what you owe this year. You can even back file to make up for past taxes. The IRS wont arrest you for doing that. (As long as you stick with the payments.)When you were arrested and charged with the felonies, if the gov't didn't check your income then they probobaly wont check it now. You said that you spent the money anyhow and from my experience, there is no paper trail for dealing drugs/ stealing so if you didn't deposit large sums into a bank account you are probobaly in the clear.
keep up the work and make yourself legit. Pay your taxes and see about getting a business name. Go to your local chamber of commerce and register yourself as a business and get a tax id#.
Good luck!

 

Hello, I think if you called an accountant, you could bend his ear for 2 hours for about $200.00. IMHO this would be the best $200 you could spend.