Do you write off Check delivery / Wire / Paypal fees?
 

They are usually pretty small, but they add up so I write those suckas off ... do you?


-p

yes

No. :( I should huh?

Might as well!

I have my checks fedexed from one sponsor at $10 a pop .. turned out be about $500 at the end of the year (weekly payouts).

:thumbsup

Of course, it's a business expense :2 cents:


Ivy

Yeah but if they're taking $10 out of your check...then your income is reduced by $10.....which is the same thing a write off would do.

So you don't necessarily write them off when you're paying fees to receive money....just when you're paying a fee to send money

:2 cents:

of course i have a few thousand recipts to write off everything is legit though...

I was going to say....but if you're never really receiving that money, then it's not income and therefore you're not really paying anything out of pocket.
Way in the beginning I was like...can we show the fees we paid to our 3rd party processors? Our accountant was like no....since you never actually got that money and you never paid out of pocket.
It's more hassle than it's worth I feel.

Interesting point, thats what i was wondering about. :Graucho

Alot of people are under the illusion that there's something magical about a tax write off.....I guess from the movies or some shit.

All a write off does is reduce the amount of income you pay taxes on, but some people think if you have a $1000 write off it reduces your tax bill by $1000....that's not true.

Of course, its a business expense.
WG

:glugglug

Yeah its a real pain. Most of the tax laws are written in confusing language so accountants and lawyers can get rich explaining them to us.


BTW, have I mentioned that you're a seriously sexy biatch? :Graucho

I've always found this pretty funny. It's amazing how many people think this way.

Lol, I've never had that illusion, but it DOES help.

Shit, I'm still paying off taxes from two years ago .. every bit helps!

-p

Sorry but that is incorrect.

say a sponsor pays you $100 for the pay period minus the $10 fee = $90 to you.

the sponsor will 1099 you $100 not $90 and you must report $100. If you report a different amount then the sponsor is reporting, then the red flags go up.

You got paid $100 then you paid the sponsor a FEE of $10

If I only had to report income I got 1099's for I'd be a VERY VERY happy guy.

I throw 1099's in the trash.

Also, there should be a line (or addendum) on the 1099 for the expense which you could then write off.

Correct

To figure out how much in taxes you will save, just subtract your tax bracket % by $1,000.

So, I'm in the 35% tax bracket plus around 8% for state, that's 42%

42% of $1,000 is $420

So for ever $1,000 in deductions I can come up with, 42% stays in my pocket.

Ha Ha,,,here is a good tip,,,,LEAP options are NOT reported to the irs

Plus,,,if you do make an honest mistake ((((cough cough))))) under the new rules,,,the IRS only has 3 years to catch it.

so anything you did 3 years ago is now in the clear:Graucho :Graucho :Graucho

Sure, I'm not saying deductions aren't useful.....what I'm saying is they aren't magical.

People say shit all the time like why don't you buy this and that and this for 10K....you'll get to write it off.....as if I basically get these things for free just because I get a deduction.

But it doesn't work that way.

Also, if you get audited, the IRS doesn't care so much about 1099's.....they're going to want to see your bank records.
If I have 50K in 1099's but put 100K in the bank, they're going to want to know about that other 50K.

I don't really pay taxes....

:glugglug

Yeah you have to make some money before you're liable for taxes.

I write off the snacks I eat while working. Save those receipts.

I do too.

It just reduces taxable income. Doesn't everyone know that?