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Tax Information.

Discussion in 'General Business' started by Mojachie, May 18, 2010.

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  1. #1
    Dear users of DP, I'm currently confused :confused:

    I make around $100 USD currently into my paypal a day, I'm an Australian. I was curious, do I need to pay tax for what I'm recieving?

    If so where?, and how much?.

    Thanks,
    Mojachie.
     
    Mojachie, May 18, 2010 IP
  2. MarTh-

    MarTh- Well-Known Member

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    #2
    I am wondering this too as a US citizen I am not at $100 a day Im at about $400 a month and wondering what taxes I should be filing, maybe self employment tax? But it is a gifted trade so I dont know the legality of it :)
     
    MarTh-, May 18, 2010 IP
  3. Mojachie

    Mojachie Peon

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    #3
    That's additionaly what I was thinking, Paypal already takes a cut out of anything I recieve, so would that technically be the "tax".

    As I don't own my own business either, so I don't know if it can be called self employment.

    Mojachie.
     
    Mojachie, May 18, 2010 IP
  4. MarTh-

    MarTh- Well-Known Member

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    #4
    Same here I don't have my own business technically it is just basic trades through internet networking. Yep Paypal does pay taxes on their income which comes from us partially but I think I am still considered an independant contractor in US. I'm really not too worried about legal penalties but I'll most likely file a 1099 for 2010 income out of ethics xD
     
    MarTh-, May 18, 2010 IP
  5. yize

    yize Active Member

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    #5
    Most likely you would need to report it, I would assume that paypal would comply with the various tax agencies around the world. Your best bet is to speak with an accountant in your country.
     
    yize, May 19, 2010 IP
  6. ceaseer

    ceaseer Peon

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    #6
    PayPal is not taking taxes out! They are taking their fees. PayPal is a business just like you and they charge to process payments. PayPal will pay taxes on the fees they collect since it is their revenue. You need to pay taxes on the full amount of money you received including the fees Paypal took.

    Keep track of everything. The fees paypal charges you, web hosting, internet connection costs, printer ink/paper, anything related to your business. Then file as a business deducting all your expenses. Filing as a business is work and may not be worth it for you. You can then file based on the revenue you received as extra income, but without deductions you will be paying more tax. Save at least 20% of income for taxes.
     
    ceaseer, May 19, 2010 IP
  7. JonPKibble

    JonPKibble Member

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    #7
    Tax laws vary by country, and for US citizens there may also be state laws you need to follow. Best thing to do is find a good accountant.

    And yes, paypal fees are a business expense - not a tax. That is PayPal's income, your gov't doesn't receive it.
     
    JonPKibble, May 19, 2010 IP