Paying Taxes for Online Earnings

Working at home is just like working 8 hours in the office with respect to many things like work deadlines, working with a team, work expectations, earning income etc. Your online earnings are also subject to income tax albeit some countries still has no strict rules with regards on taxation on cash earn online through either employment or work at home businesses.

The United States as well as some other countries like United Kingdom, Canada and Australia are very strict and require that all income from whatever sources should be declared and appropriate income taxes should be paid whether or not you earn your income from your online endeavors and projects or your income comes from working in a brick and mortar offices.     And regardless of whether your employer is physically in Europe in Asia in the Middle East or wherever, if you are a US citizen or a permanent resident you have to pay your income tax for all your worldwide earnings and income.

Much confusion has been experience by online providers, online sellers, online businessmen as well as online gamers who earn through online betting games like poker. The short and steadfast rule is all income earn are subject to taxes.

There are many online job platforms that make it easy for you to incorporate your online earnings and income so when you are finalizing your tax return it will be easy for you to compute for all taxes due. They usually have this in-built system that automatically set aside a certain portion you earned for every project as withholding tax. And you can request copies of these tax deductions to make your income tax filing correct and comprehensive. Consult with the customer service of your chosen online job platform about paying for your taxes etc.

If you have businesses selling products or services over the internet, your sales are also subject to income tax. Even if you augment your business with an online auction, the income derived from the online auction is also subject to income tax.

If you prefer work at home jobs and projects because you believe you can avoid paying your taxes, think again. But the good news is, if you work mainly at home and earn majority of your income through online contracts, you maybe eligible for a “home office deduction” and maybe allowed to reflect this as an expense on your final income tax return. You can consult your accountant or hire the services of a CPA for all your questions and to also help you sort out and declare fully all your incomes.

Timely payment of all income tax due is important so you will not face legal and tax problems in the future and you don’t have to deal with penalties and surcharges. Work at home jobs, businesses, projects and contracts are subject to taxes, it’s highly recommended that you consult your accountant to ease things for you.

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