Getting paid over 30k, What do i tell my bank?

14 replies
Hey Guys,

I need to get paid over 30k by working online and because it's a large amount i asked to receive the money by wire transfer, A friend told me the bank might not like the idea cause i never used to get such a high amount at once and start asking me questions..
I wanted to ask the old guys in here who are already used to work as a freelancers and getting high paychecks what should i say? and am i going to be asked to pay taxes like in a regular job?



Thanks,
Daniel
#30k #bank #paid
  • Profile picture of the author @tjr
    You live in the United States? If so, you're paying taxes. You're going to be checked out regardless of what you tell the bank as well. Money laundering and black market sales are a thing, a thing the government likes to prevent.

    If you're not in the United States your mileage will vary.
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    • Profile picture of the author Daniel22
      Originally Posted by @tjr View Post

      You live in the United States? If so, you're paying taxes. You're going to be checked out regardless of what you tell the bank as well. Money laundering and black market sales are a thing, a thing the government likes to prevent.

      If you're not in the United States your mileage will vary.
      I live in Israel, I'm not so familiar with the taxing process on making money online here..
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      • Profile picture of the author DWolfe
        Originally Posted by Daniel22 View Post

        I live in Israel, I'm not so familiar with the taxing process on making money online here..
        Contact some one in your country with professional and legal advice. Most members here will give you advice based on where they live. If the information is wrong you will be held accountable for any legal mistakes made. This forum is not the best place to seek the type of information you want. IMHO.
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        • Profile picture of the author rhinocl
          If possible go to a large downtown branch. Employees at smaller residential branches may be less familiar with procedures and for example give you a routing number but no Swift Code.
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  • Profile picture of the author ZanyZebra
    I own a very successful ecommerce business where i earn significant sums monthly, on average. This results in very large transfers of money every four weeks, including international transfers. Here's my advice:

    First, immediately inform your bank of the sum of money you are expecting. Advanced notices helps them.

    Second, important, then put this in writing (in an email). Do it from a business email account if possible.

    Third, explain to them where the money is coming from and, importantly, why such a large sum.

    Fourth, give the the date of the expected transfer.

    Fifth, ask your bank how long they will 'hold' the money and when you can expect it to be freed-up.

    Sixth, for potential problems, give them the name and email address (phone number) of the organisation transferring the money along with a contact name.

    I can tell you that banks have tightened up their procedures significantly over the last three years, under pressure from sovereign governments. Their main fear is money-laundering and supply of money to terrorist organisations. If you explain and give them enough time and notice, along with clear explanations as to the origins of the money, you should be able to speed the process up somewhat.

    The need for details of where the money is coming from is to give them easy access to check and ask questions if need be.

    The first transfer of this size will usually take a little longer to allow the bank to be fullly satisfied.

    Hope this helps.
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    • Profile picture of the author marciayudkin
      If you are in the US and this is work-related income, of course you will need to pay taxes. Contact an accountant to get informed on what you need to do to pay federal, state and (perhaps) local taxes.

      It's not like the taxes you pay in a regular job - it's more onerous, because you need the self-discipline to pay estimated taxes quarterly (your accountant will tell you how much) and you will be paying much more in Social Security and Medicare taxes than you did in a job. In a job, your employer paid half.

      Don't think you will get away with not paying taxes that you owe. It will catch up to you eventually, and at some point it becomes an actual prison-worthy crime.

      Do the right thing.

      Marcia Yudkin
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  • Profile picture of the author agmccall
    Originally Posted by Daniel22 View Post

    I wanted to ask the old guys in here who are already used to work as a freelancers and getting high paychecks what should i say? and am i going to be asked to pay taxes like in a regular job?



    Thanks,
    Daniel
    How about you tell the bank exactly what is transpiring.

    As far as being "asked" to pay taxes, you will actually be "Made" to pay taxes. Go to an accountant and get your business set up properly, especially if you are making 30k transactions

    al
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  • Profile picture of the author Melody
    I regularly receive and send large wires (income from affiliate networks and commissions to my affiliates) and you need to visit your bank IN PERSON. Speak with an account representative and if they are not familiar with the bank's wire processes and requirements, ask to speak to someone that is. If you have a written agreement or MOU from your client or employer, bring it with you.

    International wires can take from 24 hrs to 5 days to be received by your bank, depending on the country of origination and the banks involved. HOWEVER - your bank will normally clear the funds immediately as wires are considered a 'Good Funds Model' since the funds are taken directly from the sender's account, and very little chance of fraud these days with the due diligence for wire procedures that are in place today.

    As to 'causing' problems - unless the sender is on one of the various international watch lists, you should have no problems. The sender must give all of their details when they send the wire, and your bank will receive this information as well.

    And regarding taxes - income earned online is still just that: income. Almost all of my income is online and from non-US based companies - but I still pay taxes on all of it.

    Melody
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  • Profile picture of the author Riki Stein
    Do you have an accountant you can ask?
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  • Profile picture of the author namehero
    Originally Posted by Daniel22 View Post

    Hey Guys,

    I need to get paid over 30k by working online and because it's a large amount i asked to receive the money by wire transfer, A friend told me the bank might not like the idea cause i never used to get such a high amount at once and start asking me questions..
    I wanted to ask the old guys in here who are already used to work as a freelancers and getting high paychecks what should i say? and am i going to be asked to pay taxes like in a regular job?



    Thanks,
    Daniel
    Go talk to your local bank and be transparent about what you're doing. There are many "tech" startups in Israel that are blowing up - so I'm sure you're not going to be the first person that's had this happen. As long as you're not doing anything shady - you should be just fine.
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  • Profile picture of the author stackman
    So Israel doesn't have income tax and reporting laws like the U.S.? I'm sure they do. If you are looking for a way to "hide" your income, in most countries, you would be breaking the law. So, it seems to me that you should be talking to an accountant and setting up a legitimate bank account, and properly report your income.
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    • Profile picture of the author Kay King
      I live in Israel, I'm not so familiar with the taxing process on making money online here..
      Not really an answer. Are you an Israeli citizen or an ex-pat living in Israel.

      If you don't know the tax laws - and this money is income to you - you need to learn about your obligations before you do something that costs you money or causes you problems.
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  • Profile picture of the author ChrisBa
    Originally Posted by Daniel22 View Post

    Hey Guys,

    I need to get paid over 30k by working online and because it's a large amount i asked to receive the money by wire transfer, A friend told me the bank might not like the idea cause i never used to get such a high amount at once and start asking me questions..
    I wanted to ask the old guys in here who are already used to work as a freelancers and getting high paychecks what should i say? and am i going to be asked to pay taxes like in a regular job?



    Thanks,
    Daniel
    Just be honest with them, and yes you will need to pay taxes on it
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  • Profile picture of the author jasondinner
    I don't know how things work in Israel, but I live in NY and have never been asked.

    The only time I was asked about stuff like that was when opening a new account for a new company and had to explain to the person setting the account up how my business works.

    That's it.

    One suggestion I would make to you, if you haven't already, and always check with your accountant, would be to set up a separate bank account just for your company.

    If they do ask though, just tell them why you're getting paid $30K. You locked in a new client at a high rate or they paid in advance for XX months worth of your services.

    No big deal.
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