taxable income/revenue

[NetGuru]

Is the income from your online earnings taxable by the country of your domicile? When answering, please state the country you are from, thanks everyone.

 

[Jordan]

I live In Canada, and no matter where your money comes from, it is taxable. Even if it is just $1, you are required to claim it as revenue.
I do believe it is the same for the US/UK

 

[NetGuru]

How do you go about claiming it as Revenue and what are some of the consequences for now claiming what you earn as revenue?

 

[Kleineganz]

I'm in the US and definitely any income we earn is taxable. If you are caught not claiming revenue for taxes, you end up owing more than just taxes on that income, but a lot of fines and fees as well.

Also if you earn over a certain amount per year (technically if you earn enough to owe $1,000 or more in taxes), and you're self-employed, you then also have to start filing quarterly estimated tax payments. It's a pain in the tuckus, but you get fined if you don't do that either.

 

[xpl0iter]

Yes it is taxable. I think the minimum amount is like 200,000 INR. So if you earn more than that, the difference is taxable.

I am from India.

 

[Maniak21]

I am from Romania and the situation is the same, you must claim the revenue and then you have to pay taxes according to that revenue you claimed. Many choose to claim a smaller amount to reduce the tax payments.

 

[gmckee1985]

I'm from the United States. Online income is definitely taxed. Most things are taxed here. It's unfortunate but just the way things work here.

 

[NetGuru]

Oh! I see, so then, since income is taxable once you have reached a certain income threshold, has anyone ever thought of keeping their earnings under the threshold; to avoid paying? secondly, I have always heard about tax refund, how does this work for people who live in a country where they have to file income statements?

 

[cyberpuppet]

I must admit tax is something that scares the bejesus out of me. I live in the UK and there are different rules for employed and self employed and what makes up taxable income. Then there are allowances and thresholds. Then there is NI - paid at different rates with different thresholds and again with different rules.
The tax system here is a nightmare - it seems it is deliberately over complicated to make it impossible for ordinary people to do their own taxes. Sure they have a thing called self assessment but for most people self assessment means getting an accountant to work out the figures for you and of course you have to pay the accountant.
I am definitely still at the stage of hobby and I get no income - especially if I take into account the money I spend on hosting and electric etc (which I dont mind because it is a hobby and I am having fun - same as if I was paying for dance classes or something) but I am hoping one day I might have to worry about it.

 

[Kleineganz]

Oh! I see, so then, since income is taxable once you have reached a certain income threshold, has anyone ever thought of keeping their earnings under the threshold; to avoid paying? secondly, I have always heard about tax refund, how does this work for people who live in a country where they have to file income statements?

There is no way I could live by keeping my income below the taxable thresh hold. Not with the cost of living around here, plus having a mortgage.

In the US a tax refund is paid if you paid more money in taxes the previous year, than what you owed. This works for both self-employed and regular employed people. You can either pay more voluntarily (in order to guarantee a refund), or have a higher amount of tax withheld from your paycheck, which will also generally get you a refund.

For self-employed it's easier to do this if you're smart about it - I generally pay 40-45% of my earnings in income tax (that's federal + state + FICA combined) and if I pay a bit extra as a buffer, then I generally get a refund. It also depends on how much I can write-off my taxes each year as well (that's a whole other ball of wax).

 

[Jordan]

Some people have said here that if you don't claim your revenue you will get fined and such. Well from my understanding. In most countries depending on the offense you could even get 5-6 months jail time or more[DOUBLEPOST=1412373587][/DOUBLEPOST]

There is no way I could live by keeping my income below the taxable thresh hold. Not with the cost of living around here, plus having a mortgage.

In the US a tax refund is paid if you paid more money in taxes the previous year, than what you owed. This works for both self-employed and regular employed people. You can either pay more voluntarily (in order to guarantee a refund), or have a higher amount of tax withheld from your paycheck, which will also generally get you a refund.

For self-employed it's easier to do this if you're smart about it - I generally pay 40-45% of my earnings in income tax (that's federal + state + FICA combined) and if I pay a bit extra as a buffer, then I generally get a refund. It also depends on how much I can write-off my taxes each year as well (that's a whole other ball of wax).

45%? Holy crap. You guys pay a lot of taxes. That's why a lot of companies in the US are moving as a "Canadian" company as they would pay 15% compared to their 35%[DOUBLEPOST=1412373654][/DOUBLEPOST]It's the "legal"way to done taxes lmao and there are no laws against it... Yet

 

[Kleineganz]

Some people have said here that if you don't claim your revenue you will get fined and such. Well from my understanding. In most countries depending on the offense you could even get 5-6 months jail time or more

In the US, first they fine you. If you then continue to not pay your taxes (and your fines) they will eventually throw you in jail for tax evasion, but they do that only as a last resort.

 

[NetGuru]

There is no way I could live by keeping my income below the taxable thresh hold. Not with the cost of living around here, plus having a mortgage.

In the US a tax refund is paid if you paid more money in taxes the previous year, than what you owed. This works for both self-employed and regular employed people. You can either pay more voluntarily (in order to guarantee a refund), or have a higher amount of tax withheld from your paycheck, which will also generally get you a refund.

For self-employed it's easier to do this if you're smart about it - I generally pay 40-45% of my earnings in income tax (that's federal + state + FICA combined) and if I pay a bit extra as a buffer, then I generally get a refund. It also depends on how much I can write-off my taxes each year as well (that's a whole other ball of wax).

Oh! perfectly explained and perfectly understood. I always thought that a tax refund was simply a refund for being good about paying your taxes, lol, I don't know why I thought that was ever possible, lol, which Government would take money and then give it all back..., thanks so much for the insight @Kleineganz

 

[cyberpuppet]

Oh! perfectly explained and perfectly understood. I always thought that a tax refund was simply a refund for being good about paying your taxes, lol, I don't know why I thought that was ever possible, lol, which Government would take money and then give it all back..., thanks so much for the insight @Kleineganz

Oh I dont know why - it seems with government and taxes anything is possible. After all the UK government has decided the most efficient way to redistribute wealth is to tax everybody earning then pay back those who qualify often more than they paid in taxes in the first place.

 

[Kleineganz]

Oh I dont know why - it seems with government and taxes anything is possible. After all the UK government has decided the most efficient way to redistribute wealth is to tax everybody earning then pay back those who qualify often more than they paid in taxes in the first place.

Taxation really isn't about redistribution of wealth though. It's primary purpose is to keep government services operational (so they can build/repair infrastructure, fund the military, etc.).

 

[cyberpuppet]

Taxation really isn't about redistribution of wealth though. It's primary purpose is to keep government services operational (so they can build/repair infrastructure, fund the military, etc.).

I wish someone would tell the UK government that.