It is surprising how many Internet Marketers figure that taxes do not apply to Internet Marketing income. Obviously this is false. Regardless of where or how you generate income, you are responsible for filing with the IRS. If you deliberately refrain from following government guidelines, you will likely be sorry down the road. Believe us when we tell you that it is not something that you want to have happen. You will be happy to know that preparing your taxes to report your Internet Marketing income does not have to be difficult at all. As you read on, you will be given some great recommendations that may make this endeavor a pleasant one.
What you need to keep in mind if your income is made with Internet Marketing is to allot roughly thirty percent to the IRS. The actual amounts, of course, will fluctuate with your income. This is a viable way to make sure that the thirty percent will be there when it is due. The IRS will take estimated tax payments whenever you would like to pay them, or you can let your tax money add up to be paid all at once. This is the way you will reduce the amount that you owe at the end of the year by quite a lot. You will actually get money back if you have overpaid!
Make sure that you report your income accurately. You will be audited if your income does not match the income reported by your clients. If you are not good with numbers, then automate the process with an excel spreadsheet. Use the full numbers on your taxes, so do not roundup or round down numbers. Believe it or not, the IRS does keep careful track of these things and you want to make sure you have your bases covered.
You can deduct your leased office space. It does not matter if you work from home or if you rent office space. If you work from home, measure the amount of square feet your office takes up. If your home office utilizes an entire room, then this process is not as hard to do. The amount of money you can deduct either for the rent or mortgage payments you make is going to depend on what percentage of your home is used up by your business. Keep your numbers straight.
The IRS can see you. As an internet marketer, you will track many things. One such thing are expenditures for taxes. If you track your expenses properly, then hopefully you will not run into any problems. Keep in mind that there are pros available to give you help.
|Don t Freak Out About Your Taxes Hints for Internet Marketers page created by Carlos Summerhill|