Tax Advice for Internet Marketers

The belief that Internet Marketing is a tax free industry is basically the worst and most dangerous misconception in the market. Men and women go into it convinced that as the money they earn comes to them mainly through online sources like PayPal that they do not have to pay taxes on the things that they've generated. This is absolutely bogus! More to the point, failing to pay taxes on this income can get you into all sorts of trouble! Fear not, however: doing your taxes as an online marketer does not need to be hard. Here are a few ideas that might help you.

1. Schedule an appointment with your local Small Business organization. Just about every community has a Small Business Association (generally working through a community college) that has experts on both starting your business and making sure that all of the details (like taxes) are dealt with. Additionally, this resource is practically always free of charge!

2. Keep an eye on everything. Say it once again: monitor every single last detail. Excel makes this easy. Start a spreadsheet of every single penny you earn through your Online Marketing efforts and another that documents each and every penny you spend on your Web Marketing efforts. Don't forget to keep every single receipt and invoice for the money you spend.

3. If you have the money for it, work with an accountant. This will allow you a bit of freedom in the tracking of all of your taxes and business numbers. You tell your accountant what you've made and spent (you should have documentation for proof) and they take over from there.

4. Put money toward the taxes that you could owe at the end of the year. A fundamental principle here is to pay in 30% of every sale. This can be done through quarterly Estimated Tax Payments or even every month with the IRS. The IRS is established now to get estimated tax payments whenever you want or think you need to be making them. By doing this you will not have an eye popping number that you owe at the end of the year (which will be particularly stressful if you haven't saved up for it). Better still: if you have overpaid in your estimated tax payments, you'll get a refund -- just like you would if you were working for an employer! Be sure to consult with someone at the IRS to get this set up the right way.

5. Learn about your allowed write-offs. When you manage your own business lots of things such as your utility payments, etc are tax deductible (as is any money you spend on business equipment or supplies). Your accountant or a representative from the IRS can help you figure out which deductions you can claim at tax season.

It isn't all that hard to become intimidated by the idea of paying out taxes when you are a web marketer. The good thing is that there are a lot of resources to help you make sure you observe the law and keep a healthy share of the profit you make!

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Kathy Jenkins writes about Web Marketers along with http://www.bestfatherofthegroomspeeches.com/toasts/father-of-the-groom-toasts-disasters-to-avoid . To know more about http://www.bestfatherofthegroomspeeches.com click here.

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