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tax returns? other legalities of freelance? |
Page: 1 | Reply |
Dec 2nd 2003 | #131565 Report |
Member since: Mar 29th 2003 Posts: 1326 |
I will most likely be doing a project for a client for a substantial (>$200) amount, and I was wondering about the money-side of it. I am a minor (16) and will be paying paid over PayPal - do I need to file tax returns or something? Do I need to tell anyone about the money I'm making? I know that a lot of stuff goes on "under the table" but I'm not one to do that. I very rarely do things that are illegal, and I feel bad about doing them. I have never had a real job (physical, local, eg. McDonald's) so I don't know what kind of papers or costs are affiliated with that. Does anyone know the law on this kind of stuff? Any insight from any of you veterans would be greatly appreciated. This is a serious thread and I really do want to do the right thing. Also, keep in mind that I am a minor - I'm guessing that that is important. tom |
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Dec 3rd 2003 | #131568 Report |
Member since: Nov 14th 2001 Posts: 1297 |
hey tom, check out what I found on Google. It was very helpful to me, hope it works for you as well. link |
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Dec 3rd 2003 | #131569 Report |
Member since: Jun 20th 2003 Posts: 1203 |
I am also 16 and I have done sites for $800+ dollars, and I also receive my payments over paypal. I don't report any of my earnings. It's not really necessary and you will just get your money taken away. You are not legally bound to report jobs like this as a minor. Did you ever hear of anyone filing taxes for mowing lawns? No, it's simple not necessary. |
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Dec 3rd 2003 | #131577 Report |
Member since: Aug 28th 2001 Posts: 970 |
I could be wrong but I think it depends on how much you’re making. If you’re making an unreported living off it which could add of to a lot that might be considered tax evasion. I’m not sure though.
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Dec 3rd 2003 | #131578 Report |
Member since: Nov 12th 2003 Posts: 70 |
It also depends on the amount of time you've been earning money through the business. In Florida, you can classify a business as a "hobby" for the first two years. After that, you have to liscense it and start paying taxes. Although, it might be different for a minor. My advice would be to search on google, or take the old fasion route and talk to a consultant at your local small business administration office (usually at the closest university). They'll talk to you for free since the SBA is federally funded. |
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Dec 3rd 2003 | #131583 Report |
Member since: Nov 26th 2001 Posts: 2586 |
Also if you make under the poverty level (in the US) which is around $7k? You don't have to file an income tax statement. But, I think you are still entitled to pay social security and employment taxes. But, it's up to you really, but once you start making any noticable income you had better file. and cash = they will never know. checks and cc's and paypal = it's recorded somewhere, and depending on the person you are hiring, more than likely they will use it as a business tax write-off so it will get recorded again.... |
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Dec 3rd 2003 | #131590 Report |
Member since: Aug 10th 2001 Posts: 793 |
Its simple... Its an income, just like if you where working somwhere (like Mc donalds). Since you would declare the money you done at you job, declare it in the same way... Because it is the same thing |
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Dec 4th 2003 | #131775 Report |
Member since: Mar 24th 2001 Posts: 3734 |
We have a little bit more lax income tax laws here in the U.S. compared to Canada. We don't have to report everything, and I didn't read every post, but what I did read was right in relation to poverty levels and such. And like Telemakhos said, you're only going to lose a part of it anyways (in this case Tom wouldn't, since that is the only income he made)
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Dec 4th 2003 | #131856 Report |
Member since: Jan 1st 1970 Posts: |
Tom, glad to see you want to take the right approach and do what is right. I have one of those vague fuzzy recollections from my part-time job days that was until you make over $6000 in a year, you don't need to declare income to the IRS. That was years ago, the $7000 amount may be correct now. Stevie31 gave you some PRIMO advice The Small Business Administration is a wonderful source of information. You will learn a lot about setting up a business and things that you will be able to use in the future, even if not today. You will be getting advice and leadership from successful business owners and operators--find your local resource for SBA and give them a call. You also may be able to get a simple question like yours answered from a tax attorney or accountant with a phone call and a friendly 'help me' attitude. Let us know what you learn. |
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