Posted on February 25, 2008 @ 1:19 PM under Life Stuffs, Work Related.
Tags: blog, business, federal, google, government, license, money, online, pagerank, state, tax
I’ve spent nearly 7 hours yesterday e-filing both of my federal and state taxes using an online service. To my surprise, it looks like I’ll be paying a little over $1,100 for both with no refunds. It’s quite high mainly because of the income I earned through PayPerPost, which the government is taking 30% of. Since the federal tax is high, it affects the state tax as well since it’s based on the federal one. I’ve read that I’d pay less tax if I get a small business license which costs $150 for registration and $50 thereafter for annual renewals, but it would be a waste of money now that I’m not making big bucks as I was before the Google PR drop.
Since the state tax is based on the federal tax, they aren’t only taking 30% if you think about it. After all this, I don’t think it’s worth the time and efforts I put in for it, not to mention all the stress from promoting this blog / site; therefore, I’m considering getting off the PayPerPost bandwagon at least for a while… perhaps my PR would increase if I don’t do any paid post.
If you are making money online through PayPerPost and/or other companies, do you have a small business license? If so, how much tax do you pay for your online income? What’s the percentage of the tax?