I'm not familiar with the tax thing and working online. I had asked about it earlier and learned some useful advice. I have a few more questions I would like to ask. Please take into consideration I am a complete newbie and learning. Say the scenario is you make a certain %, to where you have to pay taxes from making money online. So do you keep a certain percentage that you make each week, in order to pay the IRS when that time comes? If so, how much is safe to put away? I just don't want to start making money online, then not save enough, then owe irs thousands of dollars time taxes come around. Keep in mind, I spend about 10 hours a day online, so between this and online surveys, and parenting this is my occupation.
If you're American, you've got pay 15% self-employment tax on everything you make on MTurk. So be sure you put at least that much aside for taxes.
There is also no minimum on what you can earn before you have to file / or declare money. IRS requires you to pay even if you only do one hit for .01 to claim it. NOW - You can claim a certain percentage of the cost of your Internet, computer, and other things you use while you work on Mturk. I am not sure how to tel you to do this - I recommend talking to a tax professional.
That isn't my understanding from reading the mturk FAQ. I wa under the impression it had to be $500 from ONE request or before you had to report It as earnings.
The $600 threshold is when requesters are required to send you a W9. Any and everything you earn on Mturk has to be claimed unless you fall under the threshold of not having to file income taxes at all and I don't know right off hand what that number is.
It has to be $600 from one requester before THEY have to report it and give you a tax form. Which is why most of the biggest requesters rip your quals out from under you for the rest of the year you after you hit about $500. But YOU have to report every penny you make from anybody to the IRS on your tax return. Edited to add: Posting at the same time as Melissa.
We have to pay taxes when we make much lower than minimum wage? Interesting.. I wasn't aware of this. I am pretty naive about this kind of thing.. glad I ran across this thread.
You will likely not be liable for any Federal Income Tax (FIT). The self-employment tax that everyone mentions covers all of your FICA contribution. When you have a real job and an employer, that 15.3% is split with you paying half and your employer paying the other half. If you are your own employer, you have to pay it all.