How much Secondary Income before I have to start reporting it?

[hevnsnt]

(the following numbers are all made up from here on)

Say I run a website and over a year it brought in $1000 through ads & sales. Do I have to report that? What if it brought in $500? $2000? What is the line where I have to report it?

Also, do I have to declare it a business or anything?

 

[FlyLice]

Don't declare it if the IRS has no way of knowing about it.

 

[OutHouse]

i think its like 800 but check with the IRS to make sure.

 

[hevnsnt]

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

Problem is, google ads will report it I imagine

 

[FoBoT]

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

i think that is tax evasion which is a felony

telling people to commit felonies isn't a good thing

 

[FlyLice]

Originally posted by: hevnsnt

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

Problem is, google ads will report it I imagine

Like I said, don't declare if the IRS has no way of knowing about it. If google reports it to the IRS then the IRS knows about it, hence you must report it.

 

[hevnsnt]

Originally posted by: FoBoT

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

i think that is tax evasion which is a felony

telling people to commit felonies isn't a good thing

lol especially when you have "Almost...have...CPA...so...close..." in your sig..

 

[Vic]

IIRC, it's $600 but I haven't checked it in a while. Sounds like it's Schedule C time for you. Don't worry about it, having a little side business is great for finding write-offs.

 

[hevnsnt]

Originally posted by: Vic
IIRC, it's $600 but I haven't checked it in a while. Sounds like it's Schedule C time for you. Don't worry about it, having a little side business is great for finding write-offs.

Schedule C?

 

[FoBoT]

if you have income from a business (as opposed to a hobby) , you have to file a schedule C. i don't think there is a cutoff/limit

 

[FlyLice]

Originally posted by: hevnsnt

Originally posted by: FoBoT

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

i think that is tax evasion which is a felony

telling people to commit felonies isn't a good thing

lol especially when you have "Almost...have...CPA...so...close..." in your sig..

What does being a CPA have anything to do with it? Accounting for reporting purposes is all about showing as much income as possible, while tax accounting is all about showing as little income as possible.

 

[FoBoT]

Originally posted by: hevnsnt

Originally posted by: FoBoT

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

i think that is tax evasion which is a felony

telling people to commit felonies isn't a good thing

lol especially when you have "Almost...have...CPA...so...close..." in your sig..

maybe he worked for price waterhouse on the Enron account

hey flylice, can you get me a shredder for a good price?

 

[hevnsnt]

Originally posted by: FlyLice

Originally posted by: hevnsnt

Originally posted by: FoBoT

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

i think that is tax evasion which is a felony

telling people to commit felonies isn't a good thing

lol especially when you have "Almost...have...CPA...so...close..." in your sig..

What does being a CPA have anything to do with it? Accounting for reporting purposes is all about showing as much income as possible, while tax accounting is all about showing as little income as possible.

because being a CPA means you should have a good set of ethics.. My wife is a CPA

Fobot: What is my website considered though? I consider it is a hobby for me, not a business, it just so happens that my hobby has become profitable

 

[Linux23]

There are 3 people that I don't Fvck with and they are the I, the R and the S.

 

[FoBoT]

Originally posted by: hevnsnt

Originally posted by: FlyLice

Originally posted by: hevnsnt

Originally posted by: FoBoT

Originally posted by: FlyLice
Don't declare it if the IRS has no way of knowing about it.

i think that is tax evasion which is a felony

telling people to commit felonies isn't a good thing

lol especially when you have "Almost...have...CPA...so...close..." in your sig..

What does being a CPA have anything to do with it? Accounting for reporting purposes is all about showing as much income as possible, while tax accounting is all about showing as little income as possible.

because being a CPA means you should have a good set of ethics.. My wife is a CPA

Fobot: What is my website considered though? I consider it is a hobby for me, not a business, it just so happens that my hobby has become profitable

i'll look up the definition, but i think the difference between a business and a hobby is that a business makes money and a hobby doesn't, so you need to be less proficient at it

http://www.irs.gov/pub/irs-pdf/i1040sc.pdf

 

[ErmanC]

I heard about this guy that was on a TV show. He won tons of money and got big radio gigs and stuff and he didn't report any of that...

Then again, they caught him a few years later.

 

[DT4K]

Originally posted by: hevnsnt

because being a CPA means you should have a good set of ethics.. My wife is a CPA

Fobot: What is my website considered though? I consider it is a hobby for me, not a business, it just so happens that my hobby has become profitable

WTF? Your wife is a CPA and you are asking us for tax advice?

 

[hevnsnt]

Originally posted by: DT4K

Originally posted by: hevnsnt

because being a CPA means you should have a good set of ethics.. My wife is a CPA

Fobot: What is my website considered though? I consider it is a hobby for me, not a business, it just so happens that my hobby has become profitable

WTF? Your wife is a CPA and you are asking us for tax advice?

She is an auditor, not a tax person. And she is not here right now. lol

 

[FoBoT]

Use Schedule C (Form 1040) to report income or loss from a business you operated or a
profession you practiced as a sole proprietor. Also, use Schedule C to report wages and Profit or Loss expenses you had as a statutory employee. An activity qualifies as a business if your primary
purpose for engaging in the activity is for income or profit and you are involved in the From Business activity with continuity and regularity. For example, a sporadic activity or a hobby does not
qualify as a business. To report income from a nonbusiness activity, see the instructions for
Form 1040, line 21.
Small businesses and statutory employees with expenses of $5,000 or less may be able to
file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for details.
You may be subject to state and local taxes and other requirements such as business
licenses and fees. Check with your state and local governments for more information.

so you can go with the C-EZ if you want
if you list all your expenses, you probably won't add much to the amount of tax you pay. don't mess with trying to evade doing this the right way, what if your business takes off and grows and grows? then you'll have to go back and fix the mess you left in your past. just do it right to begin with

 

[hevnsnt]

Originally posted by: FoBoT

Use Schedule C (Form 1040) to report income or loss from a business you operated or a
profession you practiced as a sole proprietor. Also, use Schedule C to report wages and Profit or Loss expenses you had as a statutory employee. An activity qualifies as a business if your primary
purpose for engaging in the activity is for income or profit and you are involved in the From Business activity with continuity and regularity. For example, a sporadic activity or a hobby does not
qualify as a business. To report income from a nonbusiness activity, see the instructions for
Form 1040, line 21.
Small businesses and statutory employees with expenses of $5,000 or less may be able to
file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for details.
You may be subject to state and local taxes and other requirements such as business
licenses and fees. Check with your state and local governments for more information.

so you can go with the C-EZ if you want
if you list all your expenses, you probably won't add much to the amount of tax you pay. don't mess with trying to evade doing this the right way, what if your business takes off and grows and grows? then you'll have to go back and fix the mess you left in your past. just do it right to begin with

:beer: seriously thanks man, I appreciate it

 

[FrustratedUser]

Originally posted by: hevnsnt

Originally posted by: FoBoT

Use Schedule C (Form 1040) to report income or loss from a business you operated or a
profession you practiced as a sole proprietor. Also, use Schedule C to report wages and Profit or Loss expenses you had as a statutory employee. An activity qualifies as a business if your primary
purpose for engaging in the activity is for income or profit and you are involved in the From Business activity with continuity and regularity. For example, a sporadic activity or a hobby does not
qualify as a business. To report income from a nonbusiness activity, see the instructions for
Form 1040, line 21.
Small businesses and statutory employees with expenses of $5,000 or less may be able to
file Schedule C-EZ instead of Schedule C. See Schedule C-EZ for details.
You may be subject to state and local taxes and other requirements such as business
licenses and fees. Check with your state and local governments for more information.

so you can go with the C-EZ if you want
if you list all your expenses, you probably won't add much to the amount of tax you pay. don't mess with trying to evade doing this the right way, what if your business takes off and grows and grows? then you'll have to go back and fix the mess you left in your past. just do it right to begin with

:beer: seriously thanks man, I appreciate it

If it's a hobby then the previous post said, To report income from a nonbusiness activity, see the instructions for Form 1040, line 21.

 

[jjones]

Schedule C. I used to file one every year when I lived in the States. They are pretty easy to fill out, not even using the C-EZ, and a great way to write off business expenses, like going out to dinner, buying anything even remotely business related, etc. Just start keeping receipts for everything.

 

[EagleKeeper]

Post this in the tax thread for responses as needed