How much money can I get before I get taxed?

[Suspicious-Teach8788]

Our organization is hosting a sectionals conference. We could see up to 300+ people attending. So far I've got ~170 people paying me via Google Checkout. Initially we were charging $25 and I said sure I'll handle the electronic funds, but when we bumped it to $40 I never thought twice about it.

I don't know when I should start getting worried about taxes. All I know is once I hit that 10k mark which I doubt I will, I won't be able to just cut one fat check out to our finance person to deposit.

Edit: I'm dealing with about $5k right now.

 

[pstylesss]

Did you call it a donation?

 

[Whoozyerdaddy]

Three words:

C
P
A

 

[intogamer]

I believe it is your responsibility to report taxes. Just like ebay/paypal. Yet most sellers don't.

Unless it is enough money for you to live a lifestyle beyond your means(job), then you would have a problem.

 

[kranky]

If all you are doing is acting as a conduit between the people paying for the conference and the organization hosting it, you owe no taxes. You aren't keeping the money, so it's not income.

 

[Flyback]

Originally posted by: Whoozyerdaddy
Three words:

C
P
A

Words or letters?

 

[Suspicious-Teach8788]

Originally posted by: kranky
If all you are doing is acting as a conduit between the people paying for the conference and the organization hosting it, you owe no taxes. You aren't keeping the money, so it's not income.

Bump for the morning crowd. Anyone else got any input on this?

 

[alrocky]

Tax Brackets Federal Tax Rate Schedules

Are you earning the money or is the organization?

 

[Ns1]

this is for your organization isn't it? this wouldn't be "income"

 

[Suspicious-Teach8788]

Originally posted by: alrocky
Tax Brackets Federal Tax Rate Schedules

Are you earning the money or is the organization?

I'm not earning money at all. I'm merely a conduit for this. I volunteered only because I heard what a PITA it would be to setup our own account through a certain office. Traditionally we've done payment by check which goes under the organization name. For convenience's sake we added online payment which is why it's going through me first, and then I just write a check to the organization.

I'm just worried that beacuse money is flowing through me that I might get into trouble?

 

[puffff]

Originally posted by: DLeRium

Originally posted by: alrocky
Tax Brackets Federal Tax Rate Schedules

Are you earning the money or is the organization?

I'm not earning money at all. I'm merely a conduit for this. I volunteered only because I heard what a PITA it would be to setup our own account through a certain office. Traditionally we've done payment by check which goes under the organization name. For convenience's sake we added online payment which is why it's going through me first, and then I just write a check to the organization.

I'm just worried that beacuse money is flowing through me that I might get into trouble?

Pretty sure you are fine. You're just collecting money and passing it on, not actually earning any of it.

Think of it this way.. a cashier collects money from all the customers, but he wouldn't get taxed on every dollar that he handles. He only gets taxed on his income.

 

[Ns1]

Originally posted by: DLeRium

Originally posted by: alrocky
Tax Brackets Federal Tax Rate Schedules

Are you earning the money or is the organization?

I'm not earning money at all. I'm merely a conduit for this. I volunteered only because I heard what a PITA it would be to setup our own account through a certain office. Traditionally we've done payment by check which goes under the organization name. For convenience's sake we added online payment which is why it's going through me first, and then I just write a check to the organization.

I'm just worried that beacuse money is flowing through me that I might get into trouble?

Odds are after a certain dollar amount (consult your CPA as I'm too lazy to do this research for you...) you will need to report some type of informational return.

But this isn't income so you shouldn't be taxed for it. If it is, you could structure it so it ends up being revenue = expenses = wiped off your tax on Sch. C.

 

[FoBoT]

consult some money laundering web sites