Internet Marketing Tax Hints and Tricks

One of the most detrimental myths about working in Web Marketing is that it is a tax free industry. Men and women enter it convinced that because the money they earn comes to them mostly through online sources like PayPal that they do not have to pay taxes on the things that they've earned. This is absolutely bogus! More importantly, failing to pay taxes on this income can get you into a lot of trouble! There's no need to freak out, though: Web Marketing taxes don't need to be stressful. Here are a few ideas that might help you. Want to learn more? Visit: bright media

1. Schedule an appointment with a local Small Business organization. Each community has a Small Business Association (generally working through a community college) that has experts on both starting your business and making sure that all of the details (like taxes) are handled. Best of all, this resource is practically always no cost!

2. Keep track of every little thing. Let's say it once more: keep track of every single last detail. Excel makes this simple enough. Set up a spreadsheet and record every last cent you earn with your Internet Marketing business and also one that tracks each and every cent you spend on your IM efforts. Make sure you keep receipts and invoices for all of the money which you spend.

3. If you have more than enough funding, engage a professional accountant. This will likely allow you some freedom in the tracking of all of your taxes and business numbers. You tell your accountant what you've earned and paid out (make sure you can prove this with official documentation) and they take care of everything else--especially during tax season.

4. Pay towards the taxes you are going to owe throughout the year. 30% of each sale is the fundamental guideline you'll want to follow. You can do this quarterly through Estimated Tax Payments with the IRS or you could even do this month to month. The IRS is currently set up well enough that they can get estimated tax payments from you when you feel like making them. This will save you from coughing up a genuinely distressing amount of money all at once which, if you haven't been saving up for it, can be extremely stressful. Better yet: if you have overpaid in your estimated tax payments, you will get a refund -- just like you would if you were working for an employer! It's important to speak with someone at the IRS so that you can get this set up correctly.

5. Be familiar with every one of your allowed write-offs. If you wish to manage your own business in your own home, lots of things such as the payments you make for your utilities become tax deductible just like the money you will spend on supplies or business equipment. Your accountant or someone from the IRS can help you figure out what all you can deduct when it's time for you to pay taxes.

It's easy to get intimidated by the idea of paying taxes as a web marketer. The good news is that there are many resources that will help you ensure that you don't get in trouble with the IRS and that you could keep a healthy portion of the profits that you bring in.