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Thread: taxes

  1. #1
    Senior Member thebillionaire's Avatar
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    taxes

    alright im new to all this, although I am exempt from taxes right now (under 18) I still need to know how it works.

    Ok so I am to recieve my first check from google in a month I will cash that in, now how would the government know that I am earning money from the internet, will I have to contact someone? Will I be sent some sort of tax reciept from the gov. asking for the tax money?

  2. #2
    Administrator Chris's Avatar
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    Which country are you in?
    Chris Beasley - My Guide to Building a Successful Website[size=1]
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  3. #3
    Senior Member thebillionaire's Avatar
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    im in canada

  4. #4
    Senior Member AndyH's Avatar
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    I doubt you are exempt. Unless you make under a certain amount in the financial year.
    New website released. ya rly!

  5. #5
    I'm the oogie boogie man! James's Avatar
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    You are most certainly not exempt till you're 18. A friend of mine was being taxed at 11 years old.

    But you only need to declare it if it's over a certain amount, or something along those lines.

  6. #6
    Working. Masetek's Avatar
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    If it's the same sort of system as here, you get a tax free threshold. Ours is around the 6k mark I think(?). Even if you don't earn over that amount, you may still be required to report the money you made and how you made it.

    If I were you, I would speak to an accountant. They don't cost much these days

  7. #7
    Senior Member thebillionaire's Avatar
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    ok fine if im not excemp, can someone answer my question?

  8. #8
    Future AstonMartin driver r2d2's Avatar
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    Quote Originally Posted by thebillionaire
    ...can someone answer my question?
    An accountant is probably your best bet. Do your parents have one you can speak to? Or someone you know?

  9. #9
    Senior Member thebillionaire's Avatar
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    no, but I was asking you uys because you guys pay taxes. I just wanna know if the gov sends like a form or something asking for the tax money

  10. #10
    Chronic Entrepreneur
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    You'll probably want to wait for an answer from a Canadian since what applies to people in other countries won't necessarily apply to you.

    In the US, the government doesn't send you any kind of form or bill. It's your responsibility to keep track of what you earn and what you spend in expenses for the year. At the end of the year it's up to you to report it all to the government and pay what you owe. If you don't and they find out then you face fines and/or jail time.

  11. #11
    Registered Shockt's Avatar
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    Can anyone give some tax advice for an 18-year-old American for an online income? What do I need to do? Who do I need to contact? What do I need to know?

  12. #12
    Trench Warfare
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    Quote Originally Posted by Shockt
    Who do I need to contact?
    An accountant. You should never get advice on such a serious topic from the internet. 15 minutes with an accountant will do the trick.

  13. #13
    Registered Shockt's Avatar
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    Quote Originally Posted by ozgression
    An accountant. You should never get advice on such a serious topic from the internet. 15 minutes with an accountant will do the trick.
    Thanks for the advice.

  14. #14
    Senior Member thebillionaire's Avatar
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    how much will that cost? for n ccountant, will I be paying for just that advice?

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    Accountants are a great start, but don't accept their advice on blind faith. I'm continually amazed by how many accountants don't know what they're doing or just lie down and play dead to the IRS.

    In the United States, creating a separate legal entity for your business is the most important step for preparing for taxes. If you set things up correctly, you'll save a lot of money. The reason is entities like corporations generally pay taxes on their profit, not on income.

    The difference in what you pay is huge. If you keep your income in your individual name, you'll pay taxes on your entire income. On the other hand, if you run everything through a legal entity, you're able to subtract legitimate business expenses from your income and then pay taxes on the profit.

    For example, one of my C corporations made approximately $200,000 last year but it had $204,000 of expenses. Guess how much I paid in taxes? Nothing. I actually carried forward a loss. Now, did I really lose money? No. That particular corporation pays for my car, traveling expenses, most of my meals, and several employees. In personal benefits, I took in about $100,000 from the corporation and paid no taxes on it.

    It sounds exciting, but it's actually pretty complicated. Talk to accountants and start educating yourself fast. You might start with a web site like entrepreneur.com.

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