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Old 05-25-2011, 07:54 AM
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Default Reporting Affiliate earnings?

I've never had to report mine but it seems this year will be different.
Have any of you had to pay taxes for your earnings?
How would you go about this if you spent $9900 to make $10000.

I don't know much about taxation :P
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Old 05-25-2011, 09:39 AM
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Originally Posted by d3so View Post
I've never had to report mine but it seems this year will be different.
Have any of you had to pay taxes for your earnings?
How would you go about this if you spent $9900 to make $10000.

I don't know much about taxation :P
I'm not in the US, so I dont know what tax forms you need to fill - but, in this case, you're earnings are just $100, so it's unlikely you'd have to pay any additional tax on that. You could also claim additional expenses such as a portion of your home electricity costs assuming you work from home, and other "lights on" costs - you should setup an LLC to manage your business better when you're making some more money.
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Old 05-25-2011, 12:42 PM
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If you start making any money (profit) then that will have to be reported. I would get an accountant though. You will ultimately be taxed on your net earnings.

I would recommend forming an LLC and filtering everything through a business account when you have enough money.
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Old 05-25-2011, 03:29 PM
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That's what I'm worried about. I feel that the IRS is going to tax me based on the net amount the affiliate network reports to them.
So, I'm guessing there's no way to claim expenses as a sole-proprietor?
And should I be worried about paying taxes if I net $5000 for the year but only profit $100?
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Old 05-25-2011, 11:31 PM
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Get yourself an accountant, it is the best investment in your business you can make
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Old 05-26-2011, 08:46 PM
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Originally Posted by d3so View Post
That's what I'm worried about. I feel that the IRS is going to tax me based on the net amount the affiliate network reports to them.
So, I'm guessing there's no way to claim expenses as a sole-proprietor?
And should I be worried about paying taxes if I net $5000 for the year but only profit $100?
No, you should be able to claim your business expenses and write-off some of your advertising costs. Business expenses include anything you need to do your business. For example, last year I bought myself 2 new 27" Samsung monitors to use for work and got to write off over $600 for them.



Of course, like everyone else is pointing out, your best option is to get an accountant and let them help you file so you know that you're doing it properly. They'll also be able to help you with write-offs.
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Old 05-27-2011, 06:31 PM
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I would highly suggest getting an accountant to work with you on such things. When I worked 1099, I just kept my tax bracket in another bank account to avoid back taxes (which I usually still fucked up anyways).
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Old 05-28-2011, 06:12 AM
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I'm nowhere near being able to hire an accountant :P
do I need to go the whole nine yards and establish a legit biz to claim business expenses?
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Old 05-30-2011, 06:09 AM
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Originally Posted by d3so View Post
I'm nowhere near being able to hire an accountant :P
do I need to go the whole nine yards and establish a legit biz to claim business expenses?
No, you should be able to do it as a self employed individual (I did).
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Old 05-31-2011, 05:29 AM
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What if I have a job though?
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