Samurai Legend Posted January 19, 2015 Share Posted January 19, 2015 If I am making an income do I have to pay tax? Quote Link to comment Share on other sites More sharing options...
Sim Posted January 19, 2015 Share Posted January 19, 2015 If I am making an income do I have to pay tax? Depends. How are you making income? Quote Link to comment Share on other sites More sharing options...
Samurai Legend Posted January 19, 2015 Author Share Posted January 19, 2015 My website, I am just worried since tax is vary serious Quote Link to comment Share on other sites More sharing options...
KyleMassacre Posted January 19, 2015 Share Posted January 19, 2015 If you live in the states and you find a dollar on the ground you are technically supposed to claim it Quote Link to comment Share on other sites More sharing options...
Jimbo Posted January 20, 2015 Share Posted January 20, 2015 Depends. Are you selling items on your game or are you receiving donations? Quote Link to comment Share on other sites More sharing options...
Sim Posted January 20, 2015 Share Posted January 20, 2015 If your using paypal, they send your tax stuff in (like how much you make) Quote Link to comment Share on other sites More sharing options...
Veramys Posted January 20, 2015 Share Posted January 20, 2015 I was told that if you live in the US and it is classified as a hobby and you didn't make over $6200 then you don't even need to file. Quote Link to comment Share on other sites More sharing options...
Guest Posted January 20, 2015 Share Posted January 20, 2015 If your using paypal, they send your tax stuff in (like how much you make) Since when? Last time I spoke to them about that they said they didn't send your information to the state Quote Link to comment Share on other sites More sharing options...
Ishraq Posted January 20, 2015 Share Posted January 20, 2015 The money you make from games are seen as "donations"..... :) Quote Link to comment Share on other sites More sharing options...
W3Theory || Peter Posted January 20, 2015 Share Posted January 20, 2015 (edited) The money you make from games are seen as "donations"..... :) Not true. Just because one puts 'donations' on a site, doesn't make it so. Rule of thumb, if you are providing a service to someone, or a product, for cash, it is no longer considered a 'donation'. And, if it was considered a 'donation', then you still have to pay on those donations. Are you classified as a 'Non For Profit'? If not, good luck trying to even mention the word donations to a tax auditor. Pete Edited January 20, 2015 by W3Theory || Peter Quote Link to comment Share on other sites More sharing options...
KyleMassacre Posted January 20, 2015 Share Posted January 20, 2015 Not true. Just because one puts 'donations' on the ability to donate, since you provide them with a product it is no longer considered a 'donation'. And, if it was, then you still have to pay on those donations. Are you classified as a 'Non For Profit'? If not, good luck trying to even mention the word donations to a tax auditor. Pete Pretty true there. I'm not too sure on rules for different countries but even Non Profit organizations still have to file some sort of taxes because they must prove they didn't make a profit otherwise they must pay tax on that. [MENTION=69670]Script47[/MENTION] thanks for the dislike there buddy ol' pal :p it's not my fault the Feds "make" you "claim" all your "income" haha Quote Link to comment Share on other sites More sharing options...
Script47 Posted January 20, 2015 Share Posted January 20, 2015 (edited) [MENTION=68711]KyleMassacre[/MENTION] which post did I dislike? Edit #1: I saw which one, I don't remember disliking it though? Have a thanks to equal it out. I very rarely dislike and what you wrote doesn't seem like something I'd dislike. Edited January 20, 2015 by Script47 Quote Link to comment Share on other sites More sharing options...
Seker Posted January 20, 2015 Share Posted January 20, 2015 To be clear, if you're using PayPal, once you hit over 200 transactions AND $20,000 revenue in a calender year, they supply you with the needed tax forms. If you don't meet both of these criteria, you don't have to worry about it. https://www.paypal.com/us/webapps/helpcenter/helphub/article/?solutionId=FAQ729&topicID=MANAGE_BUSINESS_AND_SALES_TOOLS&m=TCI Quote Link to comment Share on other sites More sharing options...
W3Theory || Peter Posted January 20, 2015 Share Posted January 20, 2015 To be clear, if you're using PayPal, once you hit over 200 transactions AND $20,000 revenue in a calender year, they supply you with the needed tax forms. If you don't meet both of these criteria, you don't have to worry about it. https://www.paypal.com/us/webapps/helpcenter/helphub/article/?solutionId=FAQ729&topicID=MANAGE_BUSINESS_AND_SALES_TOOLS&m=TCI That is due to regulations on their behalf. This doesn't mean you don't have to pay taxes on your end. (P.S. I am actually a Tax Accountant/Auditor, be that I only graduated 3 years ago, I still have plenty of experience with the tax code (especially global tax, since we audited a lot of companies that had entities within other countries) Quote Link to comment Share on other sites More sharing options...
Sim Posted January 20, 2015 Share Posted January 20, 2015 To be clear, if you're using PayPal, once you hit over 200 transactions AND $20,000 revenue in a calender year, they supply you with the needed tax forms. If you don't meet both of these criteria, you don't have to worry about it. https://www.paypal.com/us/webapps/helpcenter/helphub/article/?solutionId=FAQ729&topicID=MANAGE_BUSINESS_AND_SALES_TOOLS&m=TCI My aunt is gonna kill me. I have all my money sent to her paypal =0 But I also heard if you and someone else do over $300 in transactions per year, they want to know why and chances are your getting taxed. Quote Link to comment Share on other sites More sharing options...
W3Theory || Peter Posted January 20, 2015 Share Posted January 20, 2015 (edited) In all honesty though, ignoring the law, if you are only taking in a couple $100's a year, or even a month, your chances of being audited for not paying your taxes are very low. Of course, this depends on which country you are in. In the US, making that little is nothing to the IRS and won't waste their time on it. Even though under law, it states you must claim it. (screw the law and screw taxes) Edited January 20, 2015 by W3Theory || Peter Quote Link to comment Share on other sites More sharing options...
DAMINK Posted January 20, 2015 Share Posted January 20, 2015 (P.S. I am actually a Tax Accountant/Auditor, be that I only graduated 3 years ago) Ha!! No wonder your slow to do your work lololololz... Sorry peter i had to. Quote Link to comment Share on other sites More sharing options...
lucky3809 Posted January 21, 2015 Share Posted January 21, 2015 It's called a "Hobby" Tax, and you need to report anything over $400 in the U.S. Rather or not you have the word Donation on your website, if you are NOT a licensed NON Profit organization you're NOT exempt from taxes, if you are licensed non-profit than you are than exempt from the tax, but you still need to even report donations. Quote Link to comment Share on other sites More sharing options...
Mint Berry Crunch Posted January 26, 2015 Share Posted January 26, 2015 Every country has it's own approach, but generally you have to do some sort of self-assessment on your income. If you are doing this under a registered limited company then you'll probably need an accountant. In the UK you can avoid some of your tax by paying yourself by dividend (~10%) and not salary (20-40%). Is this the same in the U.S? Quote Link to comment Share on other sites More sharing options...
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