Earning on the Internet? Keep It Legal - Pay Income Taxes on Internet Earnings
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Everyone has to pay income taxes. Thatís the first thing you want to keep in mind - everyone has to pay income taxes. If you earn money, whether through your online efforts or otherwise, you have to claim this money to your government of residence. The government where you live will also take a percentage of the money you earn. This is done to sponsor federal programs and projects, including the military and medical research projects.
Everyone has to pay income taxes -- and they pay these taxes on every bit of their income. Earning money on the Internet? Then you have to pay taxes on that money, too.
In the United States, the percentage of income taxes you will pay is determined by your total (gross) income. All the money you earn in a single calendar year -- from monetary gifts to gaming wins to income earned online -- must be claimed for income tax purposes. This is the law, and this is the first step in keeping your income legal.
Keep track of everything you earn. Your gross annual earnings will determine your tax bracket, which tells you the income tax percentage (of the total gross income) that youíll pay.
If you work for an employer, itís likely your paycheck already has income taxes taken out, but this is not the case when you earn income on your own. In most cases, the money you earn online will be a gross amount, and no taxes have been deducted. Keep this in mind when youíre watching that money roll in, and set some of it to the side so youíll be ready when itís time to pay income taxes.
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