No, you cannot get out of paying taxes as an internet marketer. Anyone who says that you don't does not know what he is talking about. Also, the IRS can see everything. If they think you aren't properly reporting your income, they are going to audit you. But, do not get stressed about this. If the correct income and expenses are reported, then you do not have anything to obsess about. And, if you pay the proper amount of taxes every year. Do not feel threatened by all of this. These suggestions can help you with your taxes.
The basic rule of thumb when it comes to income you earn through Internet Marketing is that thirty percent of what you make is going to need to be paid to the IRS. This sum will depend on how much you are bringing in. Thirty percent is a good starting place though so, with every sale you make, set thirty percent aside. You have choices, you can hold it for a balloon payment when you file your taxes, or the IRS will gladly take estimated tax payments throughout the year. This will lessen the amount you will need to pay when it is due at the end of the tax year. If you paid more than you owed, you will be reimbursed! You can purchase computer software that will allow you to do your tax preparation if you do not have the money to pay an accountant to do it for you. Quicken and QuickBooks are very reliable programs for keeping track of your records. This allows you a detailed look at your expenditures and earnings, and also logs items that may be used as deductions. You can even find systems that will prepare your taxes for you once you select the appropriate forms. The key with programs like this, though, is to make sure that you keep them updated with all of the new tax forms and laws. You don't want to get caught following laws that are outdated!
You can deduct your leased office space. This is possible if you rent office space or if you use a portion of your home for business use. If you have a home office, then measure the amount of space that it occupies. This is not as hard to do if your office takes up the entire room. The amount of money you can deduct either for the rent or mortgage payments you make is going to depend on what percentage of your home is used up by your business. Don't give the wrong numbers.
The IRS does not miss a thing. Online marketers are responsible for tracking plenty of different items. Taxes are one of these things. If you track your expenses properly, then hopefully you will not run into any problems. And remember there are always professionals who are waiting to help you when you need it!
The basic rule of thumb when it comes to income you earn through Internet Marketing is that thirty percent of what you make is going to need to be paid to the IRS. This sum will depend on how much you are bringing in. Thirty percent is a good starting place though so, with every sale you make, set thirty percent aside. You have choices, you can hold it for a balloon payment when you file your taxes, or the IRS will gladly take estimated tax payments throughout the year. This will lessen the amount you will need to pay when it is due at the end of the tax year. If you paid more than you owed, you will be reimbursed! You can purchase computer software that will allow you to do your tax preparation if you do not have the money to pay an accountant to do it for you. Quicken and QuickBooks are very reliable programs for keeping track of your records. This allows you a detailed look at your expenditures and earnings, and also logs items that may be used as deductions. You can even find systems that will prepare your taxes for you once you select the appropriate forms. The key with programs like this, though, is to make sure that you keep them updated with all of the new tax forms and laws. You don't want to get caught following laws that are outdated!
You can deduct your leased office space. This is possible if you rent office space or if you use a portion of your home for business use. If you have a home office, then measure the amount of space that it occupies. This is not as hard to do if your office takes up the entire room. The amount of money you can deduct either for the rent or mortgage payments you make is going to depend on what percentage of your home is used up by your business. Don't give the wrong numbers.
The IRS does not miss a thing. Online marketers are responsible for tracking plenty of different items. Taxes are one of these things. If you track your expenses properly, then hopefully you will not run into any problems. And remember there are always professionals who are waiting to help you when you need it!