Help me: US TAX and Work Online

[nikola8]

Hi,

I start to work the internet marketing like hobby, but
I have earned pretty nice money on Paypal in last
year.

I did lots of different kind of work on the
internet (selling articles, books, programming and design work,
selling my software, affiliate programs etc.)
So many small amounts of money did that now I have
nice amount on my Paypal account.

ONLY RECORDS THAT I HAVE ARE PAYPAL INFORMATIONS.

I have to and want to pay TAX to IRS but I don't know
what forms to use, how to do that.
It is difficult to find accountant in my area that is
familiar in internet marketing.

Please help me to find informations on IRS site or wherever for my case.

Thanks,
Nikola

[Corey Bryant]

Are you an LLC, Sole Proprietor, etc? There are many different ways to file, but you might not even have to file if you are just a person and earned less than $8750.00.

You might call your local HR Block and they will probably answer this question over the phone. The accountant should be able to help you - money is money. You can also check out the 1040EZ form - that can be used if you are not itemizing etc.

And watch your local news - a lot of times, they will sponsor a group of people to come in to answer phones regarding specific topics. One of the local news stations here does it Monday - Friday.

You might check out Your Federal Income Tax as well. And then of course, don't forget (possible) state taxes as well.

[Mittineague]

If "IANAL" means "I am not a lawyer", then I guess "IANAA" could mean "I am not an accountant.

Tax code is a bear to get through, both State and Federal. It's complicated enough when your returns are for only the "normal, usual" income.

But if you don't want to go to a pro (and you are willing to risk either paying too litte or too much), you could go to the IRS website and download everything you might need and study it. IMHO a good place to start would be http://www.irs.gov/businesses/small/

If you're reading something and it refers to another document, check it out (a tangled web indeed). One problem I find is that after reading half way through something that I think might apply, I find it doesn't. But other than going to a pro, that's the only way to find out.

And as everyone's circumstances are unique, because different criteria applies to different aspects of tax law, you may have an easier or harder task ahead of you by doing things yourself.

[Corey Bryant]

Bear to get through is right. We are trying to have one more company review the income last year. Unfortunately it put us into the 35% tax bracket and we have to pay a bit more than planned (we planned on about $20,000 and right now it looks like it is $70,000).

[Mittineague]

I forgot to mention that I remember seeing a phone number in an IRS booklet that you could call and ask the IRS itself for help (no telling how good their support help desk is ). At least you still have time on your side. And AFAIK, if you're incorporated you can set your own fiscal year.

[RealmKnight]

H&R BLock is a good place to start (I work there during tax season as a tax specialist, so take everything I say with a grain of salt). That being said, businesses (even small ones) present numerous options and decisions that once made are hard to reverse w/o burying yourself in a ton of paperwork. There should be professionals at any accounting firm or H&R that can assist you in making the appropriate decisions (i.e. sole prop., Inc, Co., LLC., etc) and how to handle the day to day of the business so as to make it easier to complete the tax preperation process.

Be advised - even the IRS admits that 1 in 4 ppl that call them get their question answered wrong!
Call a tax professional that is familiar with what you do and keep calling until you find one (they are out there).

[jdjudja]

I have the same problems and quastions.
I'm US permanent resident and I'm filling tax jointly with my husband. (I have part time job, my husband full time job).
Online business is my hobby that I started last year. I do not know what I
am now (LLC?, Sole Proprietor?, etc?) with all this money what I have earned on PayPal
I only know that i have to pay taxes for that money and I only have PayPal records! For next year I'll keep all record but for 2007 I have to solve the problem!
Any answer will help.

[Dan Schulz]

Did you make more than $399.99 with your online work last year? If so, file a tax return. (And for the record, PayPal records should be fine.)

[jdjudja]

I made 10 times more than 399.99 and it looks I'm regret now. So much to worry and as I see lots of paper work.

[BlazeMiskulin]

Online business is my hobby that I started last year. I do not know what I
am now (LLC?, Sole Proprietor?, etc?) with all this money what I have earned on PayPal

Unless you have gone through the process of incorporating, you're a sole proprietor. LLC, LLP, Inc, etc., all involve filling out specific paperwork with some state agency.