What about Taxes???

[MDStidham]

Taxes haven't been mentioned in here yet. For all of you who are making a legitimate amount of money from the web, how do you claim it on your taxes? Do you have to?

[Tyler]

Of course you do.

You claim it as a source of income. However, I bet that a lot of webmasters don't report it at all. I don't have anything to back this assumption up.. I just have a feeling.

Anyhow, I just print out all my stuff and hand it to my accountant at tax time. Easy.

If you view the archives of TylerCruz.com (my blog) and JonWaraas.com you'll find us talking about how we handle taxes.

Just remember this - tax evasion is something you do NOT want to do. There's an old joke that you're better off murdering somebody than to do tax evasion...

[jeremy]

tyler is right. unless you need the money to feed your family or something, you really should not be fucking with tax collectors.

[L146705]

I have a soletrader business in the uk, put everything through that.

[raven2424]

when you print out say the paypal stuff from there list excel file, what feilds do you leave in?? like what format would this be correct

Payment To Payment From Amount Item Name/Note
raven tyler $10 stuff

would that be correct for your accountant?

[Peter Avey]

As being self employed in the UK you will get all your tax's back in a tax rebate.. You get an accountant who manage's your accounts and then try's to get you as much tax back as possible.. Now as a company you don't have to declair your yearly net profit turnover unless its over 60k

[Tyler]

Peter - Really? And 60k quid? Lucky...

raven - I had difficulty printing out all my PayPal records, but maybe what you say is possible if you extract via XML or CMS and reparse it to display the way you want.. but all I could do was print out the pages of money received, and highlight the ones which were business expenses. I wasn't able to include the details or notes of each transaction unfortunately.

It'd be best to, but my defence is that if the CRA (Canadian Revenue Agency) ever wants to assess me or anything, that I can always go back into PayPal and get the specific transaction details.

Right now there's no easy way in PayPal.

[aloksingh]

I don't earn much from my sites. So, I do not pay any taxes for that income. Maybe, if my income increases later, then I will pay them.

[Chris369]

As being self employed in the UK you will get all your tax's back in a tax rebate.. You get an accountant who manage's your accounts and then try's to get you as much tax back as possible.. Now as a company you don't have to declair your yearly net profit turnover unless its over 60k

I'm not sure what you are talking about there. Are you getting confused with VAT? Because you don't have to register for VAT until your turnover reaches 60k (might be 62k, can't remember) but you still have to pay corporation/income tax on your profits!