Taxes - 10/99 form.
 

Wow. I just did some research and I didn't realize how much money from each sale I make ($40) will go towards taxes ($12). So that's really $28 dollars per sale I make with ClickCash. I better start putting money aside for taxes come April. This is the first year that I've ever been self-employed. Are there any ways to save on taxes? I guess to report stuff like money spent on PPC engines? What a drag.

- Walrus

Yeah, taxes REALLY suck, last year I ended up paying in almost $60K for taxes, talk about a slap in the face :(

You can deduct pretty much anything even if you don't have a receipt for the item, if it's something that's logical for your business, you can put it down, that's what my accountant said anyway :)

You can also deduct a portion of your utilities like you can say that your business is 10% of your home, so you can then deduct 10% of your utilities

yea write-offs with schedule C . everything is an expense for me ( well just about everything :) )

Wow paying taxes sucks a lot of ass. I feel sorry for you guys. :(

Yeah you can deduct just about everything being self employed.

Ouch! So I guess that means Will76 doesn't make a million dollars a year. That's got to be cut in half at least with taxes. All sponsors send out a 10/99 form right? Because I was thinking, what if I was paid via epassporte.

- Walrus

A good accountant will save you a hell of a lot more than they cost you, plus they too are tax deductable.

Yep, that's for sure. I think that this year I'm gonna be a little more aggressive with what I deduct because I've been playing it safe and all that it got me was a huge tax bill :(

So you can actually make more money as a Webmaster if you live on foreign soil? You have to pay a fee don't you to transfer your earnings to your home country's dollar. I would think that would end up being the same as paying taxes.

- Walrus

MOST sponsors send out 1099 forms NOT all, for instance CCBill doesn't, but I'm sure that they report your earnings.

As far as getting payments through Epassporte, I believe that if the company is located in the US, then chances are they're gonna report you even if they don't send you a 1099. If it's a foreign sponsor then you could probably get away with it.

Could you guys give me an idea on what you write off that many other Webmasters may not even think of? Stuff you get away with...

It depends on what foreign soil and where your citizenship is.

In my case, Costa Rica has a geographical income tax system. That is to say you only pay tax on money you make in the country. Money earned on the Internet, paid out of the United States or Europe is not taxable.

Now, I would have to pay Canadian taxes normally but I'm a non resident citizen of Canada. That means I pay no taxes in Canada either.

The main currency down here is the Colone. US Dollars are accepted everywhere and there's no sur charge to change them to Colones (Banks always make a few points on exchange, that's not what I mean). I could change my money to Canadian Dollars, but have no reason to. Canada can be damned as far as I'm concerned.

The downfall for me is I have no Canadian Medical Insurance. It cost me about $2500 a year for complete coverage down here and that includes Dental. The American styled hospital 5 minutes from my house is more modern and better equipped than any Hospital I ever visited in British Columbia. The standard of care is high.

I'll give you a freebie that my accountant puts down for me $960 miscellaneous office supplies :) then you can also put down your other specifics, just use the miscellaneous as little things like pens, paper, and other things that you don't save receipts for.

get an accountant.
i figure 30% goes to taxes after deductions. that usually brings us pretty close.

I don't know anything about the US tax system, but how can you claim deductions for things you don't keep receipts for? Would that hold up in an audit situation?

Others have said it already but get an accountant!!! You are going to be paying alot more than $12 on $40. Of course some depends on your income bracket, but remember with a 1099 you have to pay double Social Security and FICA. You pay yourside and the employers.

I am getting jammed with 50% going to taxes. Of course, I am paying for Bush's invasion of Iraq - but at least I am getting cheap gasoline. Blood for Oil just got more expensive -- $3.60 a gallon in my town.

So Bush raised your taxes to pay for war in Iraq? :Oh crap

Yeah do not forget FICA, Social Security, and then State taxes and so on.