The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: WWW Sales Income||Date: 9/5/2000 7:57 PM|
|Author: TMFTaxes||Number: 39584 of 122295|
<<Posted this in the General Messages and was recommended here - Preface - Total newbie to investing, etc. I have had a pretty good year from a side internet gig and will be grossing probably over $10K from internet sales income. Since I am "Joe Middle Class" I am very concerned about this relatively big jump in income and want to make sure I do the right thing tax wise - 1] to minimize the tax hit and 2] to make sure I allocate enough money to cover the taxes. I am currently not set up as a business or anything like that - just an independent designer who finally seems to be getting it going! Thanks much for any thoughts...>>
I guess that my first thought would be to check out the articles in the Taxes FAQ area for some information that might be of interest to you...especially in the Pension Plan and IRA section of the FAQ.
Second, since you are new to taxes, you might want to pick up the TMF Investment Tax Guide 2000. It'll give you a basic understanding of how taxes work, how they are computed, and the information to help you with your own computeing and estimating. Plus, there are a number of tips that will be of interest to you. You can order a copy of the Tax Guide from FoolMart.
Finally, your required reading should be IRS Publications 334 and 560 at the IRS web site. That'll give you some information on how small business works, some of the deductions that you might want to be aware of, and the options relative to self employed retirement plans.
You've got a LOT of reading to do to get up to speed. Your only other alternative would be to engage the services of a qualified tax pro to review your situation and make some suggestions. But even if you DO go the route of the tax pro, the more YOU know about the issues, the better questions you can ask. After all, it IS your money.
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