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TAX - IM - Question

by DaWarrior
10 replies
I understand to consult a professional tax adviser, but have a question to anyone.
Would I need to put a separate tax claim for Business this year, or could I just use my regular personal tax submission.


Also let's say Clickbank declared $10k to me, but my total advertisement and re-investment actually drops it down to $0, so no profit, anyone have issues with audits?
I do have all documents of advertisement and re-investment and actually I owe more to get me started.

Thanks
#question #tax
  • Profile picture of the author Steve Peters Benn
    Get an accountant, run your business properly.
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  • Profile picture of the author scortillion
    If you're running a personal business and not a corporation or LLC then all earning is claimed on your personal income tax form.

    A word of advice, if you are making large sums of money online or offline then understand that you need to make quarterly income tax payment to both your state and the federal government. Failure to do so will result in penalties at the end of the year or even a visit from the IRS...
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    • Profile picture of the author DaWarrior
      Originally Posted by scortillion View Post

      If you're running a personal business and not a corporation or LLC then all earning is claimed on your personal income tax form.

      A word of advice, if you are making large sums of money online or offline then understand that you need to make quarterly income tax payment to both your state and the federal government. Failure to do so will result in penalties at the end of the year or even a visit from the IRS...

      Thanks.
      This year clickbank stated $10k earnings, but most was advertisement, then I re-invested in other avenues so really I CAN proof that all $10k was also for expenses this year.
      I wonder if I could just buy the TurboTax personal software and not the personal and business.
      I am not corporated nor LLC, just me.
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  • Profile picture of the author Istvan Horvath
    Originally Posted by DaWarrior View Post

    I understand to consult a professional tax adviser, but have a question to anyone.
    If you understand... then just do it (consulting the pro).

    We don't even know what country you are in (your profile doesn't show it), so how do you expect any meaningful advice, reply?
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  • Profile picture of the author IdeaLady
    Assuming you are in the U.S., you would need to file a Schedule C with your regular tax return. That is where you show your income and business expenses. Even if you didn't make a profit, you need to show the IRS that you had that income (because ClickBank will be reporting it to them) and the expenses you incurred in generating the income.

    If you made a profit, you would also have to complete a Schedule SE for your self-employment tax.

    I'm not sure if the personal version of Turbo Tax creates a Schedule C, but if it does that should work for you. (I would guess that it does, but check the specifications before you buy.)
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    Cathy Stucker, http://www.IdeaLady.com/
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    • Profile picture of the author nebraska
      Originally Posted by IdeaLady View Post

      Assuming you are in the U.S., you would need to file a Schedule C with your regular tax return. That is where you show your income and business expenses. Even if you didn't make a profit, you need to show the IRS that you had that income (because ClickBank will be reporting it to them) and the expenses you incurred in generating the income.

      If you made a profit, you would also have to complete a Schedule SE for your self-employment tax.

      I'm not sure if the personal version of Turbo Tax creates a Schedule C, but if it does that should work for you. (I would guess that it does, but check the specifications before you buy.)
      You'll also want to file Schedule A and itemize if you have that much in advertising costs, as well as other IM related expenses like hosting design, etc.

      Don't take the recent state level crack downs on IM entrepreneurs lightly...the Feds will be following suit and looking for you to play by the rules. Get legit now and plan to do business right.
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  • Profile picture of the author R Hagel
    If you're in the U.S., here's a good place to get informed: Internal Revenue Service. Then (as you yourself mentioned) talk to a qualified tax pro for further questions.

    Cheers,
    Becky
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  • Profile picture of the author 72K.org
    Great advice guys! If you're too lazy, just get yourself an accountant.

    It would make your life easier!
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  • Profile picture of the author DaWarrior
    Thanks everyone.
    I am in the US and do plan to do this right.
    Thanks everyone!
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  • Profile picture of the author DaWarrior
    Also, I found this from TurboTax and looks exactly what I need because I use turbotax for personal now I know what I need.
    TurboTax® - Reporting Self-Employment Business Income and Deductions
    Thanks everyone
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