Thursday, January 28, 2016

It's not a scam that you have to pay taxes even if you work from home. Uncle Sam wants his share!

It is not a scam for a company that you Mystery Shop, Surveys, Paid Clicks and more to ask for your personal information like Social Security Number because Uncle Sam wants his share!

Uncle Sam

I try to touch base in my Press Releases on things that people think are a scam because they do not like the process of how they are getting paid.  I don't know of anyone that is happy about having to pay taxes BUT... it is something we are all required to do and working from home does not exclude any of us.

I did a brief video on the subject so I could target more than those that read my 
press releases and blog.

As I said in my video, people seem to think that these companies want to scam you out of your money because you don't want to provide your social security number for tax purposes.  They are required by LAW to do so!

If you earn income from the internet and that includes selling on Ebay and Amazon ( if you earn a certain amount of income) you need to pay taxes on the monies you earned.  Not the full price of the item BUT YOUR PROFIT you are keeping for your income.

It amazed me when I started working with a certain Direct Sales company that people did not understand anything about paying taxes when operating their own business.  

cart before the horse

Yep, starting a business with NO PLAN is like putting
the cart before the horse!

If you do any business on-line (and don't worry if you think Uncle Sam won't find you......he loves hide and seek and he usually always wins) you need to pay taxes on your earning.

The best way to learn is to invest in a few good books about tax write offs and these below would be a good start.

Also get a binder, envelopes or notepad and start keeping track of Advertising costs
Miles if you are driving somewhere to earn income like Mystery Shopping
Website cost if you earn with a blog or Ebay
Postage is you do mailings
Cost for events get the picture, but the books below will give you full details and because the book is for your business, you can write that off too!

So INVEST in yourself and your business and know that the stand rule of thumb is 33% of what you take in should be set aside for taxes.  This pays into State, Federal, Social Security, etc.

Example:  You earn $1000 put $330 aside for taxes

This does not mean you won't get a refunded or increase bases on your earning so get good advice from an accountant at tax time.

The book below may help you and you can easily click on the cover to review or purchase.

Tax Folder
tax decuctions   tax breaks    Write it off

So I hope that cleared up the "scam" reviews and comments.  Don't believe everything you read nor stop doing something yourself because someone else has a negative comment.
Research for yourself then decide~

decide for youself 

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