Tax id number for internet work?

Question

I have found a good sideline with affiliate marketing, but they ask for my social security number or a tax id number. I am a student, and was wondering what getting a tax id number would be like. Would I need to file taxes quarterly, instead of yearly like I do now? Also would I have to file business taxes and my personal taxes? How much more complicated would the tax situation be if I got the number? would I need to file every year on the business even if i did not make any money that year. and finaly would the affiliate marketing companies be paying me, or would they be paying a business i own, and i would have to pay myself from that. I just plan to put their adds on my websites, and then they send me the checks. Which is the best way to go with this, I am really confused.

Answer 1

A tax id doesn't change anything about how you file your taxes, it just lets you give a company that rather than giving them your ss#.  If you have income that doesn't have taxes withheld, and will owe $1000 or more for the year, you are required to pay quarterly estimated payments with form 1040ES or you will be penalized at the end of the year for underwithholding.  Your business taxes will be filed using a schedule C, plus a schedule SE, as part of your regular return with a form 1040.  So it doesn't matter whether the affiliate is paying you or paying your business, unless you incorporate and there wouldn't be much reason for you to do that.  Assuming you are not incorporated, you don't pay yourself, the companies pay you.  The tax situation does get more complicated if you incorporate, but just getting a tax id doesn't change anything.

Answer 2

Do not get a tax ID number unless you have employees or are a corporation or are a partnership, or a trust.  It is just more paper work you do not need.