subject: Tax Hints Made for Internet Marketers [print this page] Tax Hints Made for Internet Marketers Tax Hints Made for Internet Marketers
When you make money by means of your Internet Marketing efforts that money counts as income. That income needs to be reported to the IRS and also you need to pay taxes on it.
Sadly, making cash on the net is not tax-free. Don't believe any person who says to you otherwise. You do not want to wind up in trouble with the Internal Revenue Service do you? There are not that many things that happen to be more frustrating or stressful than getting audited. Of course, if you've never needed to handle your own taxes before, figuring out how to track your income and expenditures and what you owe can be very confusing. Here are some hints to aid you.
The most crucial factor that you need to do is keep income records. The records need to have a great deal of details in them. Record every single payment that you get, who paid it to you and what the payment is for. Be sure to include the day as well.
You can certainly keep these data in a home accounting program like QuickBooks or in a technique you come up with on your own. Some individuals do okay with a straightforward Excel spreadsheet. Do not simply toss out these records after you've submitted your taxes. You will want to keep them on hand for a minimum of a few years just in case someone from the IRS wants to see them. Some have said that if you haven't been audited for the tax year within the three consecutive years following it you should be fine, but double check your state rules to make sure.
Keep all of your receipts and invoices on your expenses. When you earn a living in IM, there are plenty of items that can be deducted from your taxes. Your site managing costs, for example are usually tax deductible. Money you spend on business supplies could also generally be deducted.
Have you attended a seminar this year? Check to determine in case your travel expenses and the cost of the conference may be deducted. Once in a while even some of the cash you pay for your internet connection might be deducted too. Be sure to retain all of your receipts as well as copies of your paid bills so that you will have a record proving what you spent.
Pay toward your taxes throughout the calendar year. Internet Marketing is technically considered freelance work and freelancers often pay their taxes quarterly so that, when the end of the year arrives, they do not owe as much. An excellent amount to pay is 30 percent of what you generate that quarter. The IRS has a process in place now that can even let you make payments each month. Track all the payments you make and maintain duplicates. When you post your taxes in for the entire year, if you have overpaid, you're given a refund for that amount!
There are lots of methods to make your taxes easier to take care of when you work in Internet Marketing. The IRS web page is packed with beneficial tips that you can use to make your book keeping and tax preparation tasks easier. If you are generating enough money to do so, you might even hire an accountant to take care of every thing for you.
