Lets Say I Earned $600,000 from 5 Websites. Feb-may next year. How Do I Go About..?

Question

Paying taxes?

Feel free to say I wont accomplish this goal. Yeah it's a tad crazy but I have an amazing marketing idea.

I know nothing about what papers I need to file and how to pay taxes, ect.

DO NOT ANSWER IF YOU ARE GOING TO TELL ME TO SEE A PROFESSIONAL.

I know there are a lot of smart individuals on Y!A, & that's why Im asking you dears.

P.S- I am not selling anything illegal (i.e- drugs..ect)

I live in Tx, btw.

Answer 1

you didn't put how those website generate the funds.

assuming its from sales and you are the sole prop. then you can do the paperwork yourself.

file form 1040

form SE to pay your self-employment tax

Schedule C to report the income from your business

Answer 2

See a professional.

Answer 3

You'll do it the same way as any self-employed individual does.  You report your income and business expenses on Schedule C or C-EZ.  If the net profit is $400 or more for the year, attach Schedule SE to figure the self-employment tax.

With that much income your tax bill is going to be pretty steep.  You'll need to make quarterly estimated payments to the IRS using Form 1040-ES.  You'll need to pay in about $210,000 in tax split into 4 quarterly payments of $52,500 each.  If your actual profits are more or less than estimated, you can adjust the quarterly payments to cover your tax liability as needed.  If your state levies an income tax, you'll need to make quarterly payments to them as well.

Good luck with your venture.  But seriously, if you really are looking at that type of income, professional assistance IS indicated unless you have a degree in accounting and a fair bit of tax expertise.  That type of income makes you a very large "blip" on the IRS' radars and errors can be extremely costly.  I've helped unravel some messes involving that kind of income over the years and the news for the taxpayer was never good in the end.