Comments on: Ask Performancing: Filing Taxes http://performancing.com/ask_performancing__filing_taxes/ Helping Bloggers Succeed Wed, 09 Nov 2011 05:59:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Josh Budde http://performancing.com/ask_performancing__filing_taxes/comment-page-1/#comment-20105 Josh Budde Fri, 12 Dec 2008 07:05:35 +0000 http://performancing.com/?p=2890#comment-20105 Jeff: I am in the same boat as you, having being a "contractor" with TalkShoe; I have to figure out this legal mumbo-gumbo on how much I need to pay on Taxes for what I have made since being hired back in May. I am going to be talking with my Parents' Tax Professional about this in January. Josh Budde Jeff:

I am in the same boat as you, having being a “contractor” with TalkShoe; I have to figure out this legal mumbo-gumbo on how much I need to pay on Taxes for what I have made since being hired back in May.

I am going to be talking with my Parents’ Tax Professional about this in January.

Josh Budde

]]> By: John Collins http://performancing.com/ask_performancing__filing_taxes/comment-page-1/#comment-20104 John Collins Sat, 06 Dec 2008 05:30:29 +0000 http://performancing.com/?p=2890#comment-20104 You are right about the requirement for making quarterly payments but this may not be necessary if you only have received a few thousand dollars in blogging income and hold a full time job that is your primary source of income. I have a CPA but havent practiced in years so its best to ask an expect who knows the latest rules. You are right about the requirement for making quarterly payments but this may not be necessary if you only have received a few thousand dollars in blogging income and hold a full time job that is your primary source of income. I have a CPA but havent practiced in years so its best to ask an expect who knows the latest rules.

]]> By: wolf10 http://performancing.com/ask_performancing__filing_taxes/comment-page-1/#comment-20103 wolf10 Wed, 03 Dec 2008 15:24:29 +0000 http://performancing.com/?p=2890#comment-20103 Jeff: I don't want to scare you, but the IRS made a new provision several years ago that requires any "self-employed" person (even one working part time) to pay estimated taxes up front. Just as an employer would take a certain percentage of your paycheck and send to the IRS, you are required to estimate your income and pay it quarterly, although the quarterly dates are somewhat arbitrary. If you don't pay these sums on time, or you underpay them, you may find yourself paying a fine for not paying your estimated taxes. In addition, the IRS may single you out to ensure you pay estimated taxes for the following year. If you have ever signed up for payments from an online ad broker (Google, Amazon, etc.) the application you submit usually has a check box that says something about the "The IRS has not informed me that I am subject to estimated tax withholding." I don't know what the IRS does to enforce this, but if you are on the list, any company making payments to you is required to withhold part of the cash due you and send it to the IRS. The way to stay off the list is to pay your estimated taxes on time. I am not an accountant so take this for what is worth. I know people who have had to pay fines on even small amounts. The good news is that royalty income, which you can make a case includes blog income, is hard to predict so you may not have to pay it in equal quarters. You do have to pay before the end of the last quarter of the year, however. Fortunately, the last quarter of the year usually extends into January. I believe I had until January 15, 2008 to pay my last quarterly payment for 2007. Because I'm not an accountant, don't take any of this as advice. Find someone with real accountant credentials who can explain it to you. You shouldn't have to spend $100 hour. There are many small business groups who will advise you for free, and you should be able to find a tax professional to handle your entire 2008 tax form for well under $100 unless you are in some complex income situation. Take this seriously. I know the IRS does. -- Tom =========================================================================================== Tom Bonner is the author of the Sony Alpha DSLR-A300/A350 Digital Field Guide from Wiley press. He blogs regularly at http://alphatracks.com. Jeff:

I don’t want to scare you, but the IRS made a new provision several years ago that requires any “self-employed” person (even one working part time) to pay estimated taxes up front. Just as an employer would take a certain percentage of your paycheck and send to the IRS, you are required to estimate your income and pay it quarterly, although the quarterly dates are somewhat arbitrary.

If you don’t pay these sums on time, or you underpay them, you may find yourself paying a fine for not paying your estimated taxes.

In addition, the IRS may single you out to ensure you pay estimated taxes for the following year. If you have ever signed up for payments from an online ad broker (Google, Amazon, etc.) the application you submit usually has a check box that says something about the “The IRS has not informed me that I am subject to estimated tax withholding.” I don’t know what the IRS does to enforce this, but if you are on the list, any company making payments to you is required to withhold part of the cash due you and send it to the IRS. The way to stay off the list is to pay your estimated taxes on time.

I am not an accountant so take this for what is worth. I know people who have had to pay fines on even small amounts. The good news is that royalty income, which you can make a case includes blog income, is hard to predict so you may not have to pay it in equal quarters. You do have to pay before the end of the last quarter of the year, however. Fortunately, the last quarter of the year usually extends into January. I believe I had until January 15, 2008 to pay my last quarterly payment for 2007.

Because I’m not an accountant, don’t take any of this as advice. Find someone with real accountant credentials who can explain it to you. You shouldn’t have to spend $100 hour. There are many small business groups who will advise you for free, and you should be able to find a tax professional to handle your entire 2008 tax form for well under $100 unless you are in some complex income situation.

Take this seriously. I know the IRS does.

– Tom

===========================================================================================
Tom Bonner is the author of the Sony Alpha DSLR-A300/A350 Digital Field Guide from Wiley press. He blogs regularly at http://alphatracks.com.

]]> By: davidcubed http://performancing.com/ask_performancing__filing_taxes/comment-page-1/#comment-20102 davidcubed Wed, 03 Dec 2008 11:17:52 +0000 http://performancing.com/?p=2890#comment-20102 As for those with questions about the internationalization of blogging, I treat every client as though they entered my office in Canada, and purchased my services, and since Paypal or my bank does all of the currency translations, I, charge in US dollars, but save and pay taxes in Canadian dollars. And 30% sounds about right Jeff. I put aside around 35% per pay to make sure I can pay not only Income Tax, but also GST. :$ As for those with questions about the internationalization of blogging, I treat every client as though they entered my office in Canada, and purchased my services, and since Paypal or my bank does all of the currency translations, I, charge in US dollars, but save and pay taxes in Canadian dollars. And 30% sounds about right Jeff. I put aside around 35% per pay to make sure I can pay not only Income Tax, but also GST. :$

]]> By: Jeff Chandler http://performancing.com/ask_performancing__filing_taxes/comment-page-1/#comment-20101 Jeff Chandler Wed, 03 Dec 2008 00:10:09 +0000 http://performancing.com/?p=2890#comment-20101 I almost went through with my appointment with a certified CPA but that $100.00 an hour he was going to charge me made me drop out at the last second. What I have done thus far is added up my total amount of income I've made through blogging and figured out what 30% of that value is and have prepared myself to at least be able to pay that amount. That 30% being the amount that should be with held from any untaxed income to pay taxes. Here in the states, H and R block does not open their offices until January 2nd so until then, I will be in tax limbo and working for free because I screwed up and now I am trying to save every penny to insure I have enough to pay whatever tax I might owe. What a pain in the ass Christmas. I almost went through with my appointment with a certified CPA but that $100.00 an hour he was going to charge me made me drop out at the last second. What I have done thus far is added up my total amount of income I’ve made through blogging and figured out what 30% of that value is and have prepared myself to at least be able to pay that amount. That 30% being the amount that should be with held from any untaxed income to pay taxes. Here in the states, H and R block does not open their offices until January 2nd so until then, I will be in tax limbo and working for free because I screwed up and now I am trying to save every penny to insure I have enough to pay whatever tax I might owe. What a pain in the ass Christmas.

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