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Taxes - And Your Online Business - Do You Really Have To Pay?
from:By Deb St. George, on Online Business Taxes To Pay in your Tax Preparation Guide From BusinessNewsDirectory.net
If you are a neophyte in realm of online business, then perhaps you have a lot of questions that are plaguing your mind and one of them may be all about
whether you are obliged to pay taxes for your online business or not.
Calculating and paying your duly taxes alone is already one confusing ride, and surely it will get more confusing if it will be mixed with an online
business.
However, as they say, there’s no problem that cannot be solved. With just a few tips and guides, you can find out how to pay taxes for your online business
without any hassles or problems along the way.
The Charm Of Online Business
Before we talk about taxes and your online business, let’s discuss first why more and more people are getting attracted to starting their own online
business.
Well, first of all, it is very hassle-free compared to having a business in the non-virtual world. You see, in online business, you only have to type and click
for your business to boom.
Very minimal manual labor is needed in an online business and one can even get to work at home in their pajamas while managing their online business.
Now the question is: are online businessmen or entrepreneurs exempted from paying taxes? The answer is no. All individuals who are earning money online are required to pay taxes.
Sure, the government can’t possibly keep track of how much money each person generates online but then again, it’s one of the citizens’ responsibilities to go ahead and be responsible enough to pay for their taxes.
The Real Deal About Most Online Businesses
The truth is, not everybody who does business online is honestly paying their due taxes. Most online businesses include shopping and it’s a known fact that most if not all shoppers despise paying sales tax and adore a bargain that is luxuriously tax-free.
The Internet is actually considered to be a great venue for tax-free shopping which lures more and more customers each day. Online retailers have been using a no-tax shopping tag line to attract more online shoppers to their business.
Sounds like a win-win situation, right? Online shoppers enjoy numerous tax-free shopping sprees and online retailers don’t pay their taxes. Most people probably think that doing business through the Internet is considered to be tax-free.
However, the fact is, some Internet sales are actually subject to what we know as "sales tax" and online consumers are the ones often responsible to remit any unpaid sales tax on whatever online products they have purchased.
They can actually remit it directly to their state come tax-paying time.
Collecting Sales Tax The process of determining whether you should pay taxes for your online business or not may be quite confusing and overwhelming - especially if it’s your first time to get involved in online business.
However, here are just some few tips you should remember: the obligation to pay the so-called "Sales Tax" can be determined by the location of the customers, and not the seller.
If a business does not actually have a physical presence in a particular state (an example of this would be your online store or business), it is not required to collect sales tax from costumers in that certain state.
Child Tax Credit News
GOP targets child tax break for illegal immigrants
Republicans are looking to deny child tax credits to illegal immigrants — refund checks averaging $1,800 — in an effort that has roused anger among Hispanics and some Democratic lawmakers.
Read more...2011 Earned Income Tax Credit (EITC) Benefits Working Families With Up to $5,751 in Tax Refunds
LOS ANGELES, Feb. 6, 2012 /PRNewswire/ -- The Greater Los Angeles Earned Income Tax Credit (EITC) Campaign Partnership and United Way of Greater Los Angeles, the City and County of Los Angeles, the Office ...
Read more...Republicans want to deny child tax credit to illegal immigrants to pay for payroll tax cut
WASHINGTON - Republicans are looking to stop illegal immigrants from claiming federal child tax credits, including refund checks averaging $1,800. It's an effort that has roused anger among Hispanics and some Democratic lawmakers.
Read more...Working parents can get Earned Income Tax Credit
State and local officials joined with the United Way on Monday in reminding working parents to apply for the Earned Income Tax Credit, which can help bring sizeable tax refunds for families with children.
Read more...Restricting Tax Credits
Representative Sam Johnson, Republican of Texas, defends his bill requiring a Social Security number for those claiming a certain tax credit.
Read more...Barry Dolowich: Earned income tax credit
Q: Last year, I was pleasantly surprised to get back a refund far in excess of my withholding taxes due to an "earned income tax credit." I am hoping that I will qualify for this credit again for 2011.
Read more...Check your eligibility for earned income tax credit
The earned income tax credit is a financial boost for workers earning $49,078 or less in 2011. Four of five eligible taxpayers filed for and received their EITC last year. Here are the top 10 things the IRS wants you to know about this valuable credit: 1. As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether ...
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