Tag : self employment

Paying For Self Employment Income Tax Year Round Modest Money42 Comments

income-tax

Since 2005 I’ve been earning side income online. I’ve gotta say, it’s pretty nice to be getting that extra income each month. At times I’ve even relied on that money as my primary source of income.

While the additional money is satisfying, there is one part that you’re bound to dislike…paying taxes on that income.

When many people start making money online, they figure they can get away with not claiming taxes on that income. In my case I probably could get away with it since I’m Canadian and the majority of the companies paying me are in the US. It’s simply not connected to my tax id number.

Really though, I just wouldn’t want to take that risk and always be worried about having to suddenly pay a huge tax bill all at once. Plus there would likely be penalties for not paying the tax in the first place.

Also, I’ve always had dreams of turning my online business into a full time gig. If that were to happen, would I really want to commit to something like that knowing how susceptible it all would be to an audit? If the income would increase…

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By : Jeremy Biberdorf | 13 Dec 2012
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