Go Back   Digital Webbing Forums > Talent Engine > Creator Community

Reply
 
Thread Tools Display Modes
Old 01-30-2006, 06:02 PM   #1
Jason Arthur
Starving Letterer
 
Join Date: Jun 2003
Posts: 4,488
Jason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of light

PayPal and taxes...

Just wondering (because I know nothing about taxes) how much money do I have to make via PayPal before I have to start worrying about the taxman taking a looksee?

I make very little on my lettering work and it doesn't really cover any bills, so I don't really see it as "employment" but I'm curious to see how all of you handle this situation.

thanks,

-- J
Jason Arthur is offline   Reply With Quote
Connect With Facebook to "Like" This Thread

Old 01-30-2006, 06:07 PM   #2
eDuke
Registered User
 
eDuke's Avatar
 
Join Date: Jan 2002
Location: Massachusetts
Posts: 1,066
eDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to behold

PayPal sends out 1099s.
__________________
Ed Dukeshire / Digital Webbing / Letterer
Twitter: eDukeDW | Instagram: ed.dukeshire
eDuke is offline   Reply With Quote
Old 01-30-2006, 07:22 PM   #3
Val
Doctor Hue
 
Val's Avatar
 
Join Date: Jan 2005
Location: Backwoods, KY
Posts: 399
Val is just really niceVal is just really niceVal is just really niceVal is just really niceVal is just really nice

Quote:
Originally Posted by eDuke
PayPal sends out 1099s.
No kiddin'?
I never knew that. That's helpful.

JasonArthur:

If a US based company is paying you money, odds are they are reporting it paid out to you.
So that means at least one government record exists that you have this money.

If they didn't pay you over a certain amount (I think it's 750.00, not sure), they aren't required to send you a 1099.
But they are supposed to if it's over that.. .regardless of what means the payment was sent (check, PayPal, etc).
Regardless if they send you a 1099 or not, they are no doubt writing this off so they don't have to pay the taxes on it... which pushes the responsibility to you.

You have to report all your income, well, at least you are supposed to.
And then how much you pay in taxes is all relative to your annual income.

Plus, you have to fill out a Schedule C for independent contractor fees you have received, as you have to pay a business tax on that amount in addition to your regular tax withholdings.

You don't have to pay anything to Uncle Sam if you don't want... and you may go your entire life without ever being busted on it.
But, if you're ever audited, you'll be up crap creek without a paddle... owing back taxes and a lot in fines.
Val is offline   Reply With Quote
Old 01-30-2006, 10:49 PM   #4
Justice41
Piss Off
 
Join Date: Jan 2002
Posts: 9,813
Justice41 has disabled reputation

All my paypal money goes directly to my checking account so i earn no interest hence no 1099. I do declare the money I make on ebay as salary though. Since I am a freelancer all my earnings and payouts are reported. I get a lot of deductions. Home office, utilities, car, art supplies, comics, everything. I even deduct the fe Paypal charges my customers for using their service because it's my money that is being taken from my final price.
__________________
Don't pick a fight with an old man, the fact that he is old means he's a survivor.
http://justice41.deviantart.com/
http://brokefingers.blogspot.com/
Justice41 is offline   Reply With Quote
Old 01-30-2006, 10:55 PM   #5
eDuke
Registered User
 
eDuke's Avatar
 
Join Date: Jan 2002
Location: Massachusetts
Posts: 1,066
eDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to beholdeDuke is a splendid one to behold

Quote:
Originally Posted by Justice41
I even deduct the fe Paypal charges my customers for using their service because it's my money that is being taken from my final price.
Exactly! My PayPal fees are outrageous. Same with my eBay fees.
__________________
Ed Dukeshire / Digital Webbing / Letterer
Twitter: eDukeDW | Instagram: ed.dukeshire
eDuke is offline   Reply With Quote
Old 01-30-2006, 11:13 PM   #6
Jason Arthur
Starving Letterer
 
Join Date: Jun 2003
Posts: 4,488
Jason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of lightJason Arthur is a glorious beacon of light

Last year I maybe made $200 on PayPal, but already this year I'm well over $600 but from various clients.

So I should keep a ledger showing who paid me what and how much I actually net after PayPal fees right? I should also write off anything that I see as a cost of doing this business (lettering)? I'm not listed as a contractor or a business. I do this as a freelancer, does that matter in this equation?

Christ I'm dumb when it comes to taxes. Thanks for the help guys.

-- J
Jason Arthur is offline   Reply With Quote
Old 01-31-2006, 01:07 AM   #7
Justice41
Piss Off
 
Join Date: Jan 2002
Posts: 9,813
Justice41 has disabled reputation

Get a copy of Turbotax 2005 and just run the numbers using the self employed settings. Also Paypal allows you to download your entire history as a tab delinieted file which opens in Excel or you can download it in Quicken format which can be imported into Turbotax. I checked last year How much I made over my entire Paypal/Ebay history and it was somewhere around 40-50 thousand over 6 years. So 8+ grand a year just selling stuff on eBay. Not bad. I wish I could output more
__________________
Don't pick a fight with an old man, the fact that he is old means he's a survivor.
http://justice41.deviantart.com/
http://brokefingers.blogspot.com/
Justice41 is offline   Reply With Quote
Old 01-31-2006, 03:03 AM   #8
down21
Registered User
 
Join Date: Sep 2003
Posts: 574
down21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of light

This is really interesting guys. Justice I was hoping to see what kind of stuff you sell on ebay? Do you have a new link?

Also I have Quicken for home I think and I'm just trying to figure out how to keep track of incoming and outgoing. Do you mind if I ask which program you use for that?

And I have a proper fear of the IRS since those 1099's caught up with me one year and I had to pay them off over a period of time.
down21 is offline   Reply With Quote
Old 01-31-2006, 03:08 AM   #9
down21
Registered User
 
Join Date: Sep 2003
Posts: 574
down21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of light

Oops, and I apologize if I've stumbled into a kind of private conversation. It's great info though.
down21 is offline   Reply With Quote
Old 01-31-2006, 04:17 AM   #10
Justice41
Piss Off
 
Join Date: Jan 2002
Posts: 9,813
Justice41 has disabled reputation

I changed my website link to my old site.
I get paid cash for the most part and request checks to be made out to cash. I have every receipt for everything. Last year I amended my returns and got back 8 grand from the IRS for 2001 to 2004.
Quickbooks may be your best bet, I'm not sure how quicken works but it can't be far off from how quickbooks works.
__________________
Don't pick a fight with an old man, the fact that he is old means he's a survivor.
http://justice41.deviantart.com/
http://brokefingers.blogspot.com/
Justice41 is offline   Reply With Quote
Old 01-31-2006, 12:34 PM   #11
down21
Registered User
 
Join Date: Sep 2003
Posts: 574
down21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of lightdown21 is a glorious beacon of light

Dang, that's how that's done. I do definitely keep my receipts for everything.

Ok, I'll check out Quickbooks. The quicken version that I've got was really cheap second hand but it's just for home finance I think.

Thanks!
down21 is offline   Reply With Quote
Old 01-31-2006, 01:03 PM   #12
JMan
Registered User
 
Join Date: Nov 2005
Location: Seattle, WA
Posts: 866
JMan will become famous soon enough

Keep in mind too that if you're running a business you can write off purchases you've made for research and reference.
JMan is offline   Reply With Quote
Old 01-31-2006, 01:52 PM   #13
Amtekoth
Registered User
 
Join Date: Aug 2004
Location: Madison, WI
Posts: 362
Amtekoth will become famous soon enough

Like comic books
__________________
Lab Bratz webcomic http://labbratz.comicgenesis.com
More fun than you should ever have in a laboratory. Updates every Monday.
Also check out my Online Horror Anthology: A Gathering of Crows. Updates every Friday.
Amtekoth is offline   Reply With Quote
Old 01-31-2006, 02:29 PM   #14
JAQ
Jason A. Quest
 
Join Date: Mar 2005
Location: Purgatory, Michigan
Posts: 1,736
JAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to beholdJAQ is a splendid one to behold

Quote:
Originally Posted by Amtekoth
Like comic books
Just keep in mind that you might someday be asked by the IRS to justify all the things you deducted as "business expenses", and if they don't buy your argument that you needed to buy (for example) the entire output of DC and Marvel as "research" just in case you ever get a gig inking for them, you can expect to make some substantial "amendments" to your tax filings.
__________________
Jason A. Quest
JAQrabbit.com / HolyComics.com
JAQ is offline   Reply With Quote
Old 01-31-2006, 04:13 PM   #15
D.J. Coffman
Is a Juggernaut
 
D.J. Coffman's Avatar
 
Join Date: Jan 2002
Location: Pittsburgh PA
Posts: 1,674
D.J. Coffman is just really niceD.J. Coffman is just really niceD.J. Coffman is just really niceD.J. Coffman is just really niceD.J. Coffman is just really niceD.J. Coffman is just really nice

Uhm... I've never received a 1099 from Paypal. As far as I know, they don't send them out at all. They do for the money market account things I think.

What my accountant told me to do was simply add it all up, and I can also claim the paypal fees as a business deduction as well. -- Paypal just started doing monthly statements last October which make printing out your month to month stuff much easier.

Man, writing things off rules though. It rules.
D.J. Coffman is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 05:27 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2022, vBulletin Solutions Inc.
1997-2015 Digital Webbing, LLC