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An important question about taxes...

by chaoslinker007
4 replies
Hey i wanted to ask an important question..About the tax,Before i started making money i dont want to hire an accountant,BUT!

But i wanted to ask you a question.

Lets say ALL my business is managed through paypal ok?
Everything goes straight to my paypal balance,When does the tax come in? when i receive my payment to paypal,Or when i want to Withdraw money to my bank account?

thank you.
#important #question #taxes
  • Profile picture of the author Robert Michael
    PayPal doesnt report your income unless you receive 200 or more payments, AND the total amount received in 1 year, is $20,000 or more.

    So - you could make $60,000, but if you only have 199 payments received, they would not report it. You must meet BOTH of those requirements for them to report it.

    Now, say you DO meet those requirements - You would receive a 1099-K at the end of the year.

    So if you think you'll meet them, SAVE 30% FOR TAXES!!!!

    Otherwise you'll be kicking yourself come tax season. Worst case scenario, you save all that $ and you dont meet the requirements at the end of the year - leaving you one hell of a vacation fund.
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  • Profile picture of the author chaoslinker007
    ok,But i would like to inform my tax-holders,the question is when,When i withdraw money to the bank account,then i inform them,Or when i receive a payment to my paypal
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  • Profile picture of the author Michael Oksa
    Originally Posted by chaoslinker007 View Post

    Hey i wanted to ask an important question..About the tax,Before i started making money i dont want to hire an accountant,BUT!

    But i wanted to ask you a question.

    Lets say ALL my business is managed through paypal ok?
    Everything goes straight to my paypal balance,When does the tax come in? when i receive my payment to paypal,Or when i want to Withdraw money to my bank account?

    thank you.
    It is counted as income as soon as it arrives in your PayPal account.

    Get an accountant.

    Here's a suggestion, use that question to decide who your accountant will be. If they have never heard of PayPal, or don't understand online business, then they are not for you.

    Believe it or not, accountants are NOT that expensive for what they do. I always say the money I spend on my accountant is the best money I spend all year.

    Either you are in business, or you are just pretending. Real businesses have acocuntants.

    Originally Posted by chaoslinker007 View Post

    ok,But i would like to inform my tax-holders,the question is when,When i withdraw money to the bank account,then i inform them,Or when i receive a payment to my paypal
    Seriously. Please get an accountant. You need one.

    All the best,
    Michael
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    "Ich bin en fuego!"
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  • Profile picture of the author chaoslinker007
    Getting an accountant is not a problem..

    should i go to a local accountant? or hire one the odesk or freelancer?

    How much do they cost?

    and my main fear of hiring an account BEFORE i made any money is that i would pay somebody BEFORE i made any money
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