[Tucker]

Do you pay taxes on all your income? I think most people don't bother to pay taxes or report income from simple eBay sales, etc. When does this become cheating on your taxes? When do you start paying taxes on income?

[Eric]

Yes, I pay taxes on anything that actually travels to my bank account. :)

[Dana]

Yes, I pay taxes. It's my civic duty :)
Actually, this is my first year in freelancing and I get paid mostly from U.S and U.K companies so I haven't figured out my tax situation yet. I will have to do that soon since it's getting toward the end of the year.

[StarLab]

In Canada, we have no choice. Since it's deducted from my paycheck every 2 weeks, it just comes down to settling up the few dollars owing/returning at the end of the year.

I started a business about 5 years ago. In that situation, it was up to me to submit the tax money. I am still paying for that one, actually. I haven't seen a tax refund since. They just keep it and apply it to what I owe.

I figure I will be able to retire in about 100 years. Looking forward to it! ;)

[Eric]

Originally Posted by StarLab

In Canada, we have no choice. Since it's deducted from my paycheck every 2 weeks, it just comes down to settling up the few dollars owing/returning at the end of the year.

I started a business about 5 years ago. In that situation, it was up to me to submit the tax money. I am still paying for that one, actually. I haven't seen a tax refund since. They just keep it and apply it to what I owe.

I figure I will be able to retire in about 100 years. Looking forward to it! ;)

It actually works the same way here in the states with most employers unless of course you're self employed or a private contractor.

[ahkip]

yes, i pay full amount of tax, in two different state, so i am getting double tax...it is such a pain to see like 30-40 % of my income gone

[slipknot]

Originally Posted by Tucker

I think most people don't bother to pay taxes or report income from simple eBay sales, etc. When does this become cheating on your taxes?

also paypal income, i have a lot of small transaction because of selling link & service. I really don't know how to calculate my tax

[krunkfunk]

I used to be happy living in a state that didn't require state tax (FL) just Federal. Now I'm in NC where they have state tax. I just got my W-2 back, I paid over $11,000 in taxes this year and that's just from my job. I'm expecting to get a nice check back from the gov't. And the biggest bonus is having children to claim, more money back! I'll pay the taxes, not because I want to, but because I have to!

[Cobalt]

Everybody should pay tax and anybody working for an employer will probably have their tax deducted from their pay each week/month.

Freelancers work things a little differently though, with many settling up their taxes at the end of the financial year. This can be a big hit, but as long as you keep track of your earnings you can prepare yourself and know exactly how much you owe back.

A lot of minor work goes under the radar, though you really do have to be careful as people have been caught dodging tax and forced to pay tens of thousands in back tax.

[googoo]

No, I'm not paying taxes since I only make money using internet, I don't have a job yet, but I think I'll have to very soon.