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garbarg
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AllanGardyne
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Posted: Fri Jun 13, 2008 10:02 pm
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Affiliates are self employed. You're not working for ClickBank or any other affiliate network.
The rules will differ a little depending on where you live, but basically you have to declare all your income and all your expenses to the tax man, just as other self employed people do.
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Allan Gardyne
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InternetMarketing_IQ
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Posted: Sat Jun 14, 2008 4:04 am
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If you live in the United States you pay the tax if you earn income as a self employed individual. It doesn't matter what the source of the income is. You pay it.
It's actually 15.3% which is a healthy chunk when you consider that the lower Federal Income Tax brackets start at 10%. Then you add on your States Income Tax.
So it doesn't take long for the Taxman to be taking AT LEAST 1/3 of your income.
And if you are a real business you may pay additional county taxes, transit taxes, and Federal Unemployment.
Welcome to the big time!
And guess what - it's not optional!!!
If you have a "Job" you split the 15.3% with your employer.
If you are just a "Dabbler" you can show a small amount of income as "Miscellaneous" and hold down a real job and not worry about it. However you will still owe Federal/State/possibly local taxes. You just wouldn't be "Self Employed" because the miscellaneous income would be so small.
This is NOT legal advice. Everyone who earns money working for themselves would be well served contacting a Bookkeeping Service or an Accountant to make sure these issues are addressed.
Nothing as pleasant as getting an audit notice from the IRS and adding penalty and interest to the equation.
This is a part of the business that no one likes to talk about, and most people will not encounter because they will never turn enough profit to be self employed.
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