subject: Tax Helpers for Internet Marketers [print this page] Tax Helpers for Internet Marketers Tax Helpers for Internet Marketers
Any dollars created through your Internet Marketing work counts as income. The IRS needs to know about that income and it is something on which you need to pay taxes. Sadly, generating income on the net is not tax-free. Do not trust any person who tries to tell you anything different. After all, you don't want to end up in trouble with the INTERNAL REVENUE SERVICE do you? There are few things worse than getting audited! Obviously, if you haven't ever had to take care of your own taxes before now, finding out how to account for your income and expenses and the amount of money that you owe can be really baffling. Here are a few hints to aid you.
You need to make sure that you hold very careful documents of the amount of money you make. The files need to have a great deal of details in them. Write down each payment you get, who paid it to you and what the payment is for. The day must be included for every transaction as well. You can certainly keep these data in a home accounting system like QuickBooks or in a method you come up with on your own. Some folks find a simple Excel spreadsheet works best for them. Do not get rid of these kinds of records after you file your tax return. You should keep them on hand for no less than a few years just in case someone from the IRS wants to see them. Some have claimed that if you haven't been audited for any tax year within the three consecutive years following it you ought to be fine, but double check your state rules to make sure.
Keep all your invoices and receipts for every penny spent. When you earn a living in IM, there are a lot of items that can be deducted from your taxes. Website operating charges, to use one example, can typically be claimed on your taxes. Money you spend on company supplies can also usually be deducted. Do you go to conferences? Check to see in case your traveling expenses and the cost of the conference may be deducted. You could also deduct most of the money that you pay on a monthly basis for your internet connection. It is important to keep records and copies of all of your receipts and charges so that you can prove what you have spent.
Pay taxes over the course of the entire year. Internet Marketing is technically deemed freelance work and freelancers often pay their taxes quarterly so that, when the end of the year comes, they do not owe as much. A good amount to pay is thirty percent of precisely what you make that quarter. The IRS now has a procedure which will let you make payments as often as every month. Track all the payments you make and retain duplicates. When you deliver your taxes in for the entire year, if you've overpaid, you will be given a refund for that amount!
There are a lot of methods to help make tax time easier when you work in the IM market. You will find lots of great tips on the IRS website that are designed to help you streamline the whole process from book keeping to tax prep. If you will have the bucks you might look at using the services of an accountant to take care of everything for you.
