Tax Helpers for Internet Marketers
When you make money via your Internet Marketing projects that money counts as income. The IRS has to know about that income and it is something on which you have to pay taxes. Sadly, the cash you make on the web is not exempt from taxes. Don’t believe any person who tries to tell you anything that is different. After all, you don’t want to end up in trouble with the IRS do you? There are certainly not that many things which are more frustrating or stressful than getting audited. If you never have ever had to take care of your own taxes before, it can be really difficult to have to deal with your own income, expenditures and what you owe. Use the following tips to help you.
It is extremely critical that you account for the amount of money you make. These documents must be extremely detailed. Every individual settlement you receive, who pays it and what it is for has to be written down and recorded. Be sure to record the particular date also. You can certainly keep these data in a home accounting system like QuickBooks or in a system you come up with on your own. Some folks find that a fairly easy Excel spreadsheet works best for them. Do not simply toss out these kind of records after you’ve submitted your taxes. You should keep them accessible for, at a minimum, a few years just in case someone from the IRS asks to see them. Some claim that, after 3 years, if you haven’t yet been audited you should be okay, but check with the local tax rules of your state.
Save each of the receipts and invoices for the cash you pay out. In Online marketing, a lot of things can be business connected deductions. Your website running charges, for example are usually tax deductible. Money you spend on business supplies can also usually be deducted. Do you go to conferences? Check to see in case your traveling expenses and the cost of the conference may be deducted. Sometimes even most of the money you place toward your internet bill can be deducted as well. Be sure to keep all of your receipts as well as copies of your paid bills so that you will have a record proving what you spent.
Pay on taxes throughout the year. What you are doing is formally called freelancing and most freelancers will submit quarterly tax payments so that, when the end of the year arrives they will not owe as much. A great rule of thumb is 30% of your income for that quarter. There is actually a system in position now that allows freelancers pay toward their taxes every month. Track each of the payments you make and maintain duplicates. When you file your yearly tax forms, should you have unintentionally paid too much into the system, you will be given a refund for what you have overpaid!
You are capable of doing plenty of things to make taxes easier when you work in IM. The IRS web page is full of useful tips that you can use to make your book keeping and tax preparation tasks easier. You might additionally contemplate, if you have the money, employing an accountant to take care of all of that for you.
Steven Conover
