In most, if not all countries, you have to pay taxes on all income you earn. However, you should be able to write off expenses that are related to your affiliate earnings.
And it is important to note that if you don't declare your online income, then the taxman may eventually find out. A good example is EBay sellers in Canada. The Canadian tax department has required EBay to divulge information on everyone that earned over a certain amount. So that left people scrambling to make a voluntary disclosure before the taxman came calling, if they had not duly declared their earnings from EBay.
It depends on the country. In Australia, you can make money from "hobbies" up to about $50,000 without having to pay tax - amazing, eh? In the US, if you earn more than $600 in a year from one place, you are most likely going to get a 1099 form from that company. They will also be sending a copy to the IRS, so you will definitely have to declare the additional income. The US is pretty strict about not letting you get away with a penny of extra income, so what Keith mentioned about keeping track of expenses is very important. You can deduct all of the expenses first and then only pay self employment and income tax on what is left (the net). Definitely talk to someone in your area who knows what they are doing and be sure you do what is legal. I like to legally pay as little tax as possible. Blessings, Angie
happywife: It depends on the country. In Australia, you can make money from "hobbies" up to about $50,000 without having to pay tax - amazing, eh? Oh, that's fantastic! I am from commonwealth country as well, but our tax laws don't allow this!
It is always better to err on the side of caution. Go ahead, spend a few hours preparing your tax return. Should you not owe, celebrate! Should you be expecting a refund, celebrate big time! Should you owe tax, celebrate the fact this will not haunt you The unknown is what can be dangerous. Cheers! Victoria
I currently live in Philadelphia, PA. Right now a big issue is that they charge bloggers $300 tax/license fee. It is a one time fee of $300, or a yearly fee of $50. Your choice apparently. Regardless of how much money you make! I don't know how long this has been in effect, or why it seems to be a hot topic right now. Has anyone ever heard of something like this where they live? Does it seem fair?
It is an income that you earned and I think that you will need to pay tax on it. Find out the laws in your area and see what you need to do or if you need to pay for it. In most cases, you will. Maybe you should talk to your accountant. Tal
garygoh: It depends on the country. In Australia, you can make money from "hobbies" up to about $50,000 without having to pay tax - amazing, eh? HappyWife, is this legit? I am an Aussie and didn't know about this. I know that if you are receiving government benefits you didn't have to declare income from 'hobbies' up to $50,000 so the gov't doesn't take money away from your benefits as you earn more but I wasn't sure that included tax as well. This is quite interesting to me so I'll have to check it out with the ATO. Anyone else know about this tax break?
narelleyeates: HappyWife, is this legit? I am an Aussie and didn't know about this. I know that if you are receiving government benefits you didn't have to declare income from 'hobbies' up to $50,000 so the gov't doesn't take money away from your benefits as you earn more but I wasn't sure that included tax as well. This is quite interesting to me so I'll have to check it out with the ATO. Anyone else know about this tax break? That's what I was told by the ATO when I consulted them a few years ago. I'm assuming it is still the same. Did you call them and ask yet? Let me know if you've found out something different. Interestingly enough, I also remember learning that you could make up to about $30,000 (?) via direct marketing before you have to claim it as a business. I can't remember the source of that, but I remember thinking how different it was here than in the US. Blessings, Angie
I am in UK and i am really interested too in tax payment for internet income. I hope i will see more replies here.
I really think I need to move to Australia and take up blogging for a hobby because I really hate paying taxes. I firmly believe that governments have absolutely no inherent right to inflict taxes but sadly they have granted themselves the power to enforce their greedy tax laws. In Canada where I live, we are supposed to report all earnings. Russ
That's a question for an actual attorney or a CPA in your country / state. Chances are, once you make a certain amount of money you DO need to pay your taxes...unless you like jail.
I agree; contact a CPA or a tax attorney. I believe you can earn up to $600 (US) per year, and not have to pay taxes on those earnings. However, don't take my word for it, ask your tax advisor. That "$300 tax/license fee" for blogging is ridiculous! Is that a federal, state or city tax?
