When you make money by means of your mlm business opportunity projects that money counts as income. The IRS must be informed on that income and it is something on which you need to pay taxes. Sadly, making money online is not tax-free. Don’t believe any person who tries to tell you anything that is different. After all, you do not want to get into trouble with the IRS do you? There are certainly not that many things which are more aggravating or stressful than getting audited. Obviously, if you haven’t ever had to take care of your own taxes previously, learning how to account for your income and expenses and the amount of money that you owe can be really baffling. Use the following tips to assist you.

It is extremely important that you account for the amount of mlm business opportunity money you make. Make sure your own records have got a lot of details. Record each and every payment that you get, who paid it to you and what the payment is for. Be sure to record the date as well. These records can be saved in a home accounting program like QuickBooks or you can use a technique that you set up yourself. For many people, a simple Excel spreadsheet functions the best. Do not eliminate these records when you finally file your tax return. It is important that you keep them around for a minimum of three or four years just in case an IRS agent wants to see them. Some will say that, after a few years, if you haven’t already been audited, you will likely be fine but be sure of the rules for your own state before you toss anything.

Keep all your social network marketing invoices as well as receipts for each penny spent. In Internet Marketing, lots of things can be business related deductions. Your site operating expenses, for example are usually tax deductible. You may also usually deduct the money you spend on your business supplies. Do you go to meetings? Ask if you’re able to deduct your traveling expenses and the cost of the conference. You may also deduct some of the money that you pay out each month for your internet connection. It is vital to maintain records and duplicates of all of your receipts and payments so that you can prove what you have spent.

Pay toward your taxes throughout the calendar year. What you are doing is commercially called freelancing and most freelancers will send in quarterly tax payments so that, when the end of the year arrives they will not owe as much. A fine rule is 30% of your revenue for that quarter. The IRS at this point has a program that should let you make payments as often as every month. Keep records of just how much you pay in. When it comes time to file your yearly tax return, if you’ve unintentionally sent in too much money, you’ll be given a refund in the amount that you have overpaid.

There are a lot of methods to help make tax time less difficult when you work in the IM market. The IRS site is filled with useful tips that you can use to make your book keeping and tax preparation tasks easier. You might also consider, if you have the money, appointing an accountant to take care of all of that for you.

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