What do you do?

[mknapper1]

I have been doing logo contests now on various sites and have racked up quite a nice amount of money. however my dad is being retarded and saying that i need to stop or the IRS will come after me. I have made over one thousand dollars through domain sales and graphic... mainly all graphics. So this is a question to all of you guys out there. Do i actually have to pay taxes on these what is everyone else's experience on this issue, and what advice would you give, do you know of any articles that could answer this question....... thanks in advance for everyones help

 

[verbster]

Depends on your total income whether you actually pay anything.

You must file a federal income tax return if you are a citizen or resident of the U.S. or a resident of Puerto Rico. If you are single and aged under 65, you must file if your gross income was at least $8,200; if 65 or older, the limit is raised to $9,450.

There are some exclusions if you are under 14.

http://finance.yahoo.com/taxes/basics/article/101890/getting_the_basics_right

 

[IAmAllanShore]

It's not your "dad being retarded", but rather, perhaps, a little over-cautious as if you're young enough for him to care, you're young enough for him to get in trouble for your actions

Anyhow, http://www.irs.gov has great FAQ's as well as search functions. No one here will give out "tax advice", so your best bet is straight from the horse's mouth, or have your dad's accountant add you on (Typically, accountants will do the "kids" taxes for free, in my experience.).

-Allan (All of this assuming you are US, since you said "IRS")

 

[Ronald Regging]

I always hated paying taxes as a kid... I think it goes back to that taxation without representation bit...

But generally speaking, if you make money, you're required to pay taxes on it. Like others have pointed out, there is usually a minimum requirement that one must make before having tax liability, but it's definitely something you might want to research. This way you'll have a headstart on some basic tax law if you decide to pursue more business ventures in the future, plus it'll make you look responsible to your dad

 

[Spade]

Honestly - at the amount of money youve made - I dont forsee the IRS comming after you. Nor do I see any of the contests youve won, reporting the income.

However, I would call up a tax man and ask how much you need to make in your state to HAVE TO file. Sounds like your under the poverty line with that income and I think your pretty safe.

But I think If your able to make that much money at your age creating logos/graphics online you have a bright and promising future.

Best of luck and I think a Congrats is in order.

 

[goodkarmaco]

Well said Domainspade. Also follow seek Allans advice and give the account professionals a phone call.