One of the worst fallacies about working in Web Marketing is that it is a tax free industry. Individuals who get into it appear to believe that just because they are earning money and being paid through, for instance, PayPal, they do not have to pay taxes on what they earn. This is not true! What’s more important is that if you don’t pay taxes on this money, you could end up in all kinds of trouble! Don’t worry, however: doing your taxes as a web marketer doesn’t have to be difficult. Below are a few tips and hints that can help you.
One of the most detrimental misconceptions about working in Internet Marketing is that it is a tax free industry. People get into it convinced that as the money they earn comes to them mainly through online sources like PayPal that they don’t need to pay taxes on the things that they’ve generated. This is simply not true! Most importantly, failing to pay taxes on this income could get you into all kinds of trouble! You don’t have to panic, though: Internet Marketing taxes don’t need to be stressful. Here are some ideas that will help you.
1. Obtain an appointment at your local Small Business Association. Every community has some type of small business "helper" organization (generally run through a community college) which has trained professionals available to help you both getting your business starting and ensuring that all of your T’s are crossed and your I’s are dotted. The best thing is that this useful resource is almost always free of charge.
2. Record each little thing. This is well worth repeating: monitor every single thing. Excel makes this easy. Create a spread sheet of every penny you earn through your Internet Marketing efforts and another that documents every single penny you spend on your Online Marketing efforts. Don’t forget to keep each and every receipt and invoice for the money you spend.
3. If you’re able to afford it, hire an accountant. In this way you do not have to worry about the numbers and taxes part of your online business. You tell your accountant what you’ve made and paid out (be sure you can prove this with official documents) and they take care of everything else--especially during tax season.
4. Pay towards the taxes you’ll owe throughout the year. 30% of each sale is the basic rule you need to follow. You can do this every three months or even each month by making Estimated Tax Payments to the IRS. The IRS currently has the ability to get estimated tax payments any time you think or want to make them. By doing this you’ll not have an eye popping number that you owe at the end of the year (which will be extremely stressful if you haven’t saved up for it). What is better is that if you have somehow overpaid through your estimated tax payments, you’re going to get a repayment just like you would if you were working for a traditional company. Be sure to speak with someone at the IRS to make sure you get set up correctly.
5. Find out about your allowed write-offs. If you want to operate your own business from home, many things such as the payments you make for your utilities become tax deductible just like the money you’ll pay for supplies or business equipment. Your accountant or someone from the IRS can help you figure out what all you can deduct when it is time to pay taxes.
It’s not all that tough to become intimidated by the idea of having to pay taxes when you are an Internet Marketer. Luckily, there are all kinds of resources available to help you follow the law and still keep yourself from losing your shirt to the IRS!Should you be searching for a lead generation solution for internet marketing you must watch this tremendous short film by going to this link - vemma ingredients. You may also find generate leads extremely appropriate.