Do you have to pay taxes on the money you make online? Are there ways to make money and not pay taxes? It’s tax time again and I am sure many people who made money on the Internet last year for the first time are wondering what to do about taxes. In fact, I am also sure many don’t have a clue about taxes at all.
If you live in the United States, you do owe taxes on any money you make online. But guess what…not only do you owe federal and maybe state taxes but you owe Social Security taxes as well! What are Social Security taxes? That’s another 15.3 percent on top of whatever you owe for the federal and state taxes. So, depending on how much you made, you may owe close to 40% or 50% of it back to the government! That’s right and then you just voted Obama in who is the most liberal Democrat around and he is gonna raise it more, you better believe, because if you are rich enough to be making money online then you better pay your Obama taxes so he can flush it right down the toilet by giving it to someone who doesn’t feel like working. Obama and the government know how to spend your money better than you do so you darn well better give it all back or you will go to jail. (rant over)
Of course you don’t HAVE to pay any taxes on your online earnings. It is always your choice but if you get caught not paying your taxes you will get fined and maybe go to jail (or you might be considered for the head of the Treasury like Tim Geithner). The problem with all the ways to make money online is that there is a trail when you get paid. Almost all affiliate programs require your tax info so that they can report it and they send you a 1099. Then if your taxes don’t match
what has been reported, you may get audited and in big trouble. If you get audited the IRS will look at everything including your PayPal account so if you are trying to hide stuff and not pay taxes then you will be caught (again, this would not be good unless you are being considered for a high government position and then it is just fine if you cheat on your taxes).
When you make money through affiliate programs or any other way online, you also have to pay your taxes quarterly. Did you know that? If you have a regular job, the taxes and Social Security are withheld from every paycheck However, if you are self employed and have any type of work from home job, you are responsible for paying your own taxes (this means writing a check and sending it in to those goverment crooks) and you have to do that every quarter.
The only way to make money and not pay taxes is if you have some sort of a cash business. Of course, you really do owe taxes then too but if you only deal in cash then it is almost impossible for the goverment to track. This is why I think many live game cash poker poker players (poker and taxes ) never report what they make at the tables because it is impossible to prove.
So there you have it, if you were lucky enough to earn money online or start to make some money online in 2008, you better figure out how much you owe and pay up. This includes paying taxes on prizes worth more than $600.00. You also better get ready to pay more taxes in the next four years because Obama is going to raise them just like every Democrat has done since the beginning of time. (what? you say he promised to lower them for you? Really…and you believed him? Guess what…..HE WAS LYING AND YOU FELL FOR IT!)