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Do you pay taxes from your earnings?

by Vizkii
13 replies
Hello I have a question for all those people who make money from IM. Could you give any tips or things to kbow when it comes to taxes? Do you even pay any? Of course this probably only applies to those in US but im sure theres several other country's that make you pay taxes.. A few even have to give up 50% in taxes. How much should be put aside when tax season comes?
#earnings #pay #taxes
  • Profile picture of the author spearce000
    Yes, profts from IM are taxable - and not just in the US. Best to ask your accountant for advice as to how much to put aside as it's going to vary depending on where you live..
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    • Profile picture of the author FredJones
      I am from India, and yes we do pay taxes here. In fact, the taxes go up to 12.36% for the service tax/VAT. This is on revenue and not on profit, so whatever you earn as gross revenue, we would pay 12.36% of it outright, irrespective of profit or loss.

      After that, we need to look at the profits (gross revenue minus costs minus expenses minus depreciation). Whatever remains is taxed, with the maximum being 30%, depending on the income levels, and this 30% (on net profit) is over and beyond that earlier 12.36% (of gross revenue).

      I hope that helps. In the US, the tax structure will be different of course.
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      Get funded up to US $2 Million for your business as a JV (not a loan). Keep 80% of the profits.
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  • Profile picture of the author larryboy03
    I am just about to declare my self as self employed online and for the UK, I think 20% of earnings should be enough to put aside.
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  • Profile picture of the author Radium
    Internet Marketing is a real business and most countries have a corporate tax system. Individuals also have to pay income tax on their earnings in most countries.

    The amount of taxes depend on your country and income level. This information can be obtained from an accountant or a local tax office. They would know best.

    Here in Finland, we have to pay VAT 24%, Business Owner Insurance (depends on income), Employee Insurance if you have employees, and Income Tax. After all mandatory payments, an individual business owner gets to keep about 50% of their profits.
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  • Profile picture of the author Michael Kohler
    I'm not sure if this is what you are looking for, but it addresses IM and taxes.
    Do I Have to Pay Taxes for an Internet Business? | Chron.com
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    • Profile picture of the author MarketMaster13
      Yes,it applies many countries not USA alone.
      I do pay tax from my online earnings
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  • Profile picture of the author palmtrees
    No, the money you make on the internet is special magic money and you don't have to pay any taxes on it.
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    • Profile picture of the author digitalnetworkgroup
      Originally Posted by palmtrees View Post

      No, the money you make on the internet is special magic money and you don't have to pay any taxes on it.
      Sorry but this had me in fit's
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    • Profile picture of the author lorrainesmithills
      Originally Posted by palmtrees View Post

      No, the money you make on the internet is special magic money and you don't have to pay any taxes on it.
      You wish!
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  • Profile picture of the author IndianaJones
    Originally Posted by Vizkii View Post

    Hello I have a question for all those people who make money from IM. Could you give any tips or things to kbow when it comes to taxes? Do you even pay any? Of course this probably only applies to those in US but im sure theres several other country's that make you pay taxes.. A few even have to give up 50% in taxes. How much should be put aside when tax season comes?
    There is a way to set up your business legally so that profits build up offshore and you are not liable for them until you pay them out to yourself. But you need to find an expert in knowing how to do that and setting up a company for that type of strategy. You need an expert for advice and counsel. If you are not structured properly then YES everything you make is taxable to you.
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  • Profile picture of the author ronrule
    Originally Posted by Vizkii View Post

    Hello I have a question for all those people who make money from IM. Could you give any tips or things to kbow when it comes to taxes? Do you even pay any? Of course this probably only applies to those in US but im sure theres several other country's that make you pay taxes.. A few even have to give up 50% in taxes. How much should be put aside when tax season comes?
    Review the marginal tax rates here and figure out what rate you'll be paying based on your taxable income:

    Income tax in the United States - Wikipedia, the free encyclopedia

    Now - this number is not exactly what you'll pay. You'll have all kinds of deductible expenses when you do your taxes, and you'll end up paying far less than that. What I do personally is I have a separate savings account specifically for pre-tax money. Out of every dollar I receive, my expected taxable percentage goes into this account and from that moment forward it "doesn't exist" anymore. At tax time, I know there will always be enough in that account to cover the check I'll have to write to the IRS and usually plenty of extra cash that was offset by deductions.
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  • Profile picture of the author laurencewins
    Asking for tax advice in here is like asking for advice on the best drink in the pub. You will get lots of different answers. Go and talk to your accountant because he should know how to help you the right way.
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    Cheers, Laurence.
    Writer/Editor/Proofreader.

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  • Profile picture of the author Fazal Mayar
    Yes, income for IM are taxable and I first thought they wen't but they definitely are.
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    Blogger at RicherOrNot.com (Make Money online blog but also promoting ethical internet marketing)

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