PayPal adds to your annual?

[RageD]

Hey everyone,

I was just wondering, does the money you receive via PayPal add to your annual? Like say I made $500 on PayPal and didn't work anywhere else, would I still have to pay taxes on that money? (Illinois tax laws say annual income of $500 or more must pay taxes)

-RageD

 

[GamePhreak]

I would contact a lawyer to be sure, but you may not feel like spending half of your income to find out if you should pay tax on it.

I would claim your income from Paypal. Also remember that your Paypal balance is not necessarily your income (because you might also spend money that used to be in Paypal), unless you're a registered business.

 

[roadhog]

Taxes

Don't bother contacting an attorney. What do they know anyway? :D

Use Turbo Tax or Tax Cut to do your taxes. I am set up as a business, so the monies I make through Paypal do count as income. Still, you would be better off using a tax program as it will guide you through everything.

 

[RageD]

Alright. I appreciate your responses, more thoughts are also appreciated I have contacted paypal myself as well. I am trying to figure this out so I don't set myself up for a visit from the IRS lol

-RageD

 

[Peter]

I don't think paypal will be able to help you much as the laws are wildly different from country to country and probably state to state in the US.

Here in the UK we are allowed to earn £5010 (currently about $10000) before we are taxed (tax code x 10).

Some forms of income are non taxable. I presume you have local tax offices near where you live I suggest you contact them. Be prepared for any questions so you will need proof or an idea of how much you make plus a note of any costs that were incurred in making the money.