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Taxes - And Your Online Business - Do I Have To Pay Taxes?
from:By Deb St. George, on Online Business Taxes I Have To Pay in your Tax Preparation Guide From BusinessNewsDirectory.net
Perhaps the most common misconceptions about taxes and your online business is that the two are not related to each other. Most people think that online businesses are not really taxed that’s why more and more people are becoming attracted to start their very own online business.
If you are one of the many people who is interested in starting your own online business or if you already have an online business of your own, then for sure you have heard about the controversies about online
businesses and taxes.
Most people who don’t really have a stable background about online businesses and taxes would most probably guess that owners of online businesses are able to be exempted from paying taxes.
However, in reality, online businesses are still covered with tax dues.
"But I Am Working At Home" And Other Lame Excuses Not To Pay Taxes
The most common excuse of people who have online businesses who wish to ditch paying taxes is that they are "working at home". What most people don’t realize is that taxes are actually based on the sources and amount of the income as well as the types of services and products sold; not on the location of the business.
So whether you are working at home, in a store or in a warehouse, you are still obliged to pay for whatever tax is due to you.
Internet Tax Is Just Like Any Business Tax Basically, online businesses are taxed just like any other business. The government does not actually collect income taxes based on how a business operates but instead, it focuses on the form of the business.
A business based on the Internet still has to register for GST and PST (if applicable) just like any other business. Whether your online business is a sole proprietorship or incorporated, you will still need to fill up some important forms so that your online business can be deemed as legal and so that you can pay the proper taxes regularly.
There is actually no big difference between the tax responsibility of an online business and any other business.
Online Businesses And Federal Taxes
If you have an online business and you are wondering if you still need to pay federal taxes, the answer is yes. But before you go around and complain about the unfairness of the world, you might as well learn more about the federal taxes that you need to pay.
If you are a sole proprietor of an online business, any income you earn through your online business will be taxed as income on your PTR or personal tax return.
In addition to that, you are also obliged to pay your portion of social security and medicare taxes using schedule SE.
However, if you have incorporated your business, the way of paying taxes will become slightly different compared to when you are the sole proprietor of your online business.
Sometimes, the tax you pay as an incorporated online business will also depend on the kind of organization. It’s either you will pay tax at a corporate level or it will be passed down to you as an income.
Dealing with an taxes and your online business can be quite an ordeal if done alone so it would be much better if you’d contact experts regarding this matter such as a lawyer or a certified public accountant.
State Tax News
Senator Theatre wins $300000 state tax credit for restoration - Baltimore Sun (blog)
 Baltimore Sun (blog) | Senator Theatre wins $300000 state tax credit for restoration Baltimore Sun (blog) By Larry Perl, lperl@patuxent.com The Senator Theatre has been awarded a $300000 state tax credit for restoration of the historic, Art-Deco style cinema house that was built in 1939. The Senator is one of six recipients of a combined $7 million in ... |
Proposed State Tax On Cigarettes Could Create 12000 Jobs - LAist
 LAist | Proposed State Tax On Cigarettes Could Create 12000 Jobs LAist If the measure, also known as Prop 29, is approved, state cigarette taxes would increase by $1 a pack, generating an estimated $855 million annually for anti-smoking education programs, medical research and tobacco law enforcement, reports UC Newsroom. State Economy to Get Big Jolt with Proposed New Tax on Cigarettes, Study Finds |
Is next state tax debate nearer than expected? - The Connecticut Mirror
 Wall Street Journal | Is next state tax debate nearer than expected? The Connecticut Mirror "The governor's budget passed by the Democrats continues to fall apart ... despite the largest tax increase in state history," added Senate Minority Leader John P. McKinney, R-Fairfield. Even Malloy's fellow Democrats in the legislature are beginning ... Malloy's first year: Getting eaten alive Fiscal restraint may limit big-ticket proposals AP-CT--Session Opens, 1st Ld-Writethru,962 |
Steep cuts, no tax hikes in Corbett's $27.1B budget - Philadelphia Inquirer
 Scranton Times-Tribune | Steep cuts, no tax hikes in Corbett's $27.1B budget Philadelphia Inquirer Corbett is proposing a $27.13 billion budget that again sticks to his campaign pledge not to raise taxes, but calls for steep cuts to higher education and mostly level funding for public schools and services for the state's poor and disabled. Pennsylvania Poised to Permit Counties to Tax Gas Wells New Corbett budget holds line on taxes, includes big cuts for higher ed Corbett budget slashes higher education spending, but taxes stay the same |
Occupy Protesters Interrupt State Budget Hearing - New York Times (blog)
 New York Times (blog) | Occupy Protesters Interrupt State Budget Hearing New York Times (blog) By THOMAS KAPLAN Nathaniel Brooks for The New York TimesProtesters briefly interrupted testimony by the state tax commissioner Thomas H. Mattox, lower right, in Albany on Monday. ALBANY – Two dozen protesters from the Occupy movement, which two months ... Protesters “occupy” state budget hearing on taxes Occupy protesters disrupt NY budget hearing Video: Occupy Albany disrupts tax hearing |
UCLA study gives qualified support to film tax credit program - Los Angeles Times
UCLA study gives qualified support to film tax credit program Los Angeles Times While California's film tax credit is providing an economic benefit to the state, it may not be providing as much of a return to taxpayers as an earlier study claimed. That's one of the main conclusions from a new study conducted by UCLA's Institute ... Study: State needs to expand tax credits |
Governor highlights more cuts to Okla. income tax - CBS News
 Wall Street Journal | Governor highlights more cuts to Okla. income tax CBS News Mary Fallin outlined a budget plan Monday to deeply reduce Oklahoma's personal income tax rate by eliminating dozens of tax exemptions, including many claimed by poor and working-class Oklahomans. In her State of the State address, Fallin said she ... Oklahoma governor plans to cut state income taxes Fallin proposes new spending, income tax cuts for Oklahoma Fallin Highlights More Cuts To Okla. Income Tax |