Your Questions About Doing Business Online Taxes
Robert asks…
Starting my own ebay online business and questions about paying taxes?
I am going to be starting my own business on ebay and sooner or later going to make my own fitness store website. By my estimate i will be making around 300-600 dollars per month by me estimate. Now my question is what about taxes. I dont want to get in any trouble and so I just want to know what i have to do as far as taxes. I am completely new to this and even paying taxes in general can someone help me out
Jere answers:
Dear kid: If you can claim yourself (not your parents) it sounds like you will be close to a tax liability, but you will have to file Sch C as a Sole Proprietor and have to pay SE tax. Go to www.irs.gov and read Sch C instructions. If you begin to make more money you may want to consider paying estimated taxes (quarterly taxes). Seek professional advice to get started, a free consultation.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent
Donna asks…
WHO THINKS AMAZON AND ONLINE BUSINESS NEEDS TO PAY SHARE OF TAXES?
I DO AND IF NORMAL RETAILERS LIKE WALMART HAVE TO COLLECT TAXES, THEN SO SHOULD ONLINE!
Jere answers:
THINK ABOUT IT! ! ! ! THINK! ! ! HOW COMPLICATED THAT WOULD BE. EACH STATE, EACH COUNTY, EACH CITY, ETC
Thomas asks…
Taxes on Online Business?
I am 13 and live in the U.S. I am about to launch an online business, do i have to pay taxes or even report the earnings?
Jere answers:
If your income is $400 or more, you must file tax return and pay the taxes. This is irrespective of your ages.
You are self employed. You must file your tax return if your self employed income is $400 or more. You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040).
Michael asks…
Does the government expect people who make handmade items from home to sell online to pay business taxes? ?
I want to start selling my handmade items independenly from home without getting in trouble for not paying business taxes. I don’t plan to register as a business.
Jere answers:
You would report your income as pay income tax not business tax
Carol asks…
How do I legally run an online business?
I am looking into starting a retro video game business online, but I wanted to know if I need to register my business, and if so, how? Also, how do taxes work for online stores and selling used products?
Jere answers:
Contact H&R Block, those people can answer any questions you have.
Good luck with your online store.
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