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Tax Season is upon us

by redstanford
6 replies
Tax season is here. i havn't made any money through IM in 2010 so this time i don't have to claim any IM taxes but next year hopefully i will have plenty of IM taxes to file. for those experienced with IM taxes, what kind of questions should i ask HR Block when i go there next week? i want to ask them how i can maintain all the proper documentation and such. what should i ask about? thanks
#season #tax
  • Profile picture of the author TBInternetMarketing
    I love the positive attitude. Knock em dead mate!
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  • Profile picture of the author LMC
    Well... if you plan on outsourcing more then $600 to one individual, talk some 10-99s from them and W-9s to receive the information.

    Otherwise, it's setup just like any other business.
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    • Profile picture of the author Dave Rodman
      Banned
      First off, I would establish a relationship with a local CPA...not HR Block. That way you can kinda transition more easily.

      But here's what I would do.

      1) Even if you're a sole prop, have a seperate checking account only for IM.
      2) Have a credit card (Visa or MC) that's only for IM.
      3) At the end of the month, print (or save) all your statements and keep them.
      4) Personally, I don't really bother printing too many receipts out because most of my charges I can access later through an online account. But if you make a purchase where that's not possible, then keep a receipt.
      5) Keep track of individuals that do services for you. And tell them that you need their Name/Address/SSN once you hit $600. And if they are doing work for you that will put them across that limit, then withhold the payment until they provide it.
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      • Profile picture of the author redstanford
        Originally Posted by Dave Rodman View Post

        First off, I would establish a relationship with a local CPA...not HR Block. That way you can kinda transition more easily.

        But here's what I would do.

        1) Even if you're a sole prop, have a seperate checking account only for IM.
        2) Have a credit card (Visa or MC) that's only for IM.
        3) At the end of the month, print (or save) all your statements and keep them.
        4) Personally, I don't really bother printing too many receipts out because most of my charges I can access later through an online account. But if you make a purchase where that's not possible, then keep a receipt.
        5) Keep track of individuals that do services for you. And tell them that you need their Name/Address/SSN once you hit $600. And if they are doing work for you that will put them across that limit, then withhold the payment until they provide it.
        thank you very much for this reply. i had never considered opening a seperate account for IM. makes a lot of sense.
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        • Profile picture of the author Western Grizzlin'
          FYI, you don't have to 1099 contractors outside the US. Just another example of how the government incentivizes us to outsource overseas.
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  • Profile picture of the author kindsvater
    As someone who used to do taxes for H&R Block, and has seen their training, I suggest going to a CPA or real tax professional for business tax issues.

    And just because you didn't make any money with your IM business last year does not mean you do not have potential business expenses to deduct.
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