Internet business, tax question?

Question

hi, i am a affiliate for ebay partner network and i want to cash out for $50, do i have to pay taxes on that? thanks.

Answer 1

In principle, you would add your profit to your income for the year and report it that way.  However, if that's all you made other than regular wages that are already on your W2, forget it.

Answer 2

I wouldn't worry about it unless it adds up to more than $600 for the whole year.  You don't have to pay until tax time, anyway.

Answer 3

Yes, you will.  You're probably considered an independent contractor and should report it on a schedule C.  at $50 profit, you'll owe no self employment taxes and it will be included in income on your 1040 at tax time.

Answer 4

Yes you do. You have to pay taxes on any and all income no matter how small