Question by TheChosenOne: do you get taxed on your sales w/ Online Business?
im 15 and not paying taxes yet
im starting an online business and want to know if i will be charged income tax by the IRS or something.
i will most likely make less then $ 1000 a year
soo yeah please please please help 🙂
Best answer:
Answer by bostonianinmo
Yes, you will pay taxes on the income. If the net income is only $ 1,000 there won’t be any Federal income tax, however you will have to pay Self-Employment taxes. Those work out to about 14.1% of the net income due to the odd way that they’re calculated. Make sure that you keep accurate records of your income and expenses, and set aside enough to pay the tax when you file your return next year.
Normally you’d have to make quarterly estimated tax payments, but since your income is so low and the tax is less than $ 1,000 you can skip that as long as you have the money to pay the tax when you file.
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