Weekly Work At Home Recap 04-16-2010

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Posted: 04.15.10

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Hi Guys,

I hope all is well with you. I'm a bit under the weather and trying to fight off a cold. I think my daughter's 2 year old Dora The Explorer Birthday Extravaganza took it's toll on me last week. It's not because I actually did anything. I have a great wife that took care of all that stuff. I think it was all the "work" of managing everything from a far that did it to me. lol

Fortunately I'm away in Puerto Rico recovering under some warm sun and a cool beach breeze. lol I'll share some pictures next week. In any event, this week I just want to cover taxes since the deadline has passed. If I had a bit more foresight, I would have wrote about this last week instead of my stalker love of Apple products. But better late than never. I imagine that next year many of you will be making a lot of money working at home and Uncle Sam is going to want their cut. So let me explain the process.

Work At Home & Taxes

So if you've been involved with any work at home related company, you've probably noticed that many of them don't withhold taxes. I'm sure you thought to yourself well if they ain't asking then I'm not telling. But "Au Contraire Mon Frere"! The feds still want to get in your pockets.

The reason why the whole work at home business set up is appealing to companies is they can save on various costs such as health insurance, retirement and payroll expenses. Most of us are happy to sacrifice this stuff if it means we can sit in our house slippers and earn a living from the comfort of our lumpy couch. So everyone wins. However Uncle Sam wants to win too so you are expected to report this income you're receiving.

So let me break down how this works so you avoid any issues in the near future because I know all my loyal subscribers will be "stacking a lot of at home paper" ($$$) in 2010 so the following will probably apply to you.

99.9% of work at home opportunities work as follows. You’re usually considered an independent contractor not an employee. When you reach about ~~$600~~ $400 for a given company, you may be required to fill out a w-9 tax form. At the end of the year you’ll receive a 1099 that is filed with the Feds and a copy is sent to you. You then take that to your accountant. They will ask you what expenses or deductions you have such as internet fees, computer, etc, etc. That will be subtracted from what you earned. If there is anything left, you’ll be taxed on that when you send in your return. When you start making some larger sums of money, I would suggest getting incorporated. It definitely helps your tax burden.

So that’s pretty much how the taxes work. Keep in mind some companies aren’t based in the U.S. so they may not require this. But as a rule of thumb, you’re suppose to report the income regardless. Please keep in mind I’m not a tax advisor or professional. You should always seek the advice of a professional tax advisor for questions regarding taxes as the information I provided here may not be accurate.

I hope this helps you next year. Speak to you soon.

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MsEdrena

Soooooooooo, you’re having a good time in PR–wish we were there???

Thanks for the tips. They’re very timely for me, considering I’ve just been blessed with an at-home gig. Next to God, I fear tangling with the IRS, so these tips are right on time for me. I’ll dig deeper into this by doing some additional research because I don’t need to get on the radar screen of the IRS hounds.

Continue enjoying your vacation, because it appears you really need it. It had to be very, very tiring watching your wife do all that work as you sat afar off. You must be plumb tuckered out!
Cathy

15 years ago I left my at home business after being lured into the wonderful field (oops) of mortgage and investment banking. I went to one tax seminar for at home business owners. I was shocked at the number of people who didn’t know enough about how the tax people do their research on you to stay out of trouble. Keep in mind, this was before the high tech world of the web. These people were only now investigating how to avoid an audit and how to be prepared for the possibility of another one!? That’s right, they had already been audited. They all had tax preparers. They neglected to report income. I came away knowing two things. I would cross reference my expenses. A file for my receipts and a list of what I bought, how much it cost and where I bought it. My vision was of the day I may get audited or substantiate something I reported. The IRS would have to comb through all that. It would all be in perfect order only a pain in the eye to sift through it. I also left enough credits out so that after the audit the tax man would have to cut me a check for about $22. Alas, I was never audited to see my vision come through. 22 bucks is a cheep insurance policy.
http://www.surveyfavs.com Callie

It just ain’t right Eddy. You there vacationing in beautiful PR while we are here slaving away on our work grind. LOL

You getcha enjoy on! I agree with MsEdrena, you do deserve it after the way you “managed” to wear yourself out at your daughter’s party. Lol Aww, how cute. Your lil princess has entered the Terrific Two stage. I remember that year with each of my kiddos oh so well

Looking forward to peepin’ the vacation pics!!
Cheri

Another good article as usual Eddy! I really appreciate the tax advice for “independent contractors”..I currently work for ChaCha on occasion and if I get to that $600 point, then I know I better get my butt (along w/1099) to a Tax Accountant pronto, next year! Thanks!
MsEdrena

@Callie:

Callie, the man has no sense of shame

Have a blessed day Callie. Let’s take a page from his book. Maybe if we’d “loafed” around a bit this year we’d be vacationing by now, too. May not be too late, you think??? Oh, well
Lee

Well if you make more than $400.00 a year as an Independent contractor.
You’ll have to report it to the IRS check out the IRS website.

If you make less than $400.00 You do not need to report it.

Hope this help people
http://www.workathomecareers.com Eddy Salomon

Big Sis (Ms. Edrena)

You’re welcome. I totally feel you regarding the IRS. They are some folks you don’t want to mess with. I’m definitely enjoying myself here in P.R. It would be better if I were at 100% but I can’t complain. lol By the way it’s a lot of work “managing” my wife and all the tasks she has to complete. Saying yes, no or it’s up to you babe causes a lot of mental wear and tear on my simple simon man mind. I don’t think you ladies are appreciating my position here. lol By the way it takes a lot of work to loaf around the house. So definitely feel free to give yourselves a vacation.

Cathy,
You’re one of the few folks I know that welcomes an audit by the IRS. LOL But it goes to your point about preparation and doing what you’re suppose to. In any event, thanks for sharing. I’m curious what have you transitioned into since the whole mortgage collapse? Are you running your home business again?

Callie,

You need to stop with all the “hate crimes”. lol It takes a lot of working managing my wife. She’s so demanding with all of her: “Eddy can you help with this and that?”. lol
My little princess seems a bit advance because she’s been acting terrible a few months before turning 2. lol Her sense of independence is crazy. Teenage years are going to suck. lol

Cheri,
You’re quite welcome! I’m confident that next year you’ll be making $600 or more so get ready!

Lee,
I believe you’re right. This is why I say folks should check with their tax accountants. Obviously some things have changed. Thanks for the correction.
Lee

Your welcome Eddy

Eddy is right, please do check with your Accountants.
Every year is different.

And Eddy your one of the best networking and job developing person I seen on the web.

Keep up the good work and beyond..
Curtis

Eddy, first off let me apologize for calling you Eddie! I am so sorry about that I haven’t ordred the Honest Riches course yet. When I do I’ll let you know what it’s like. I have noticed you’ve mention several suvey sites, maybe I missed it but I don’t recall seeing Synovate listed. I had belonged to it several years ago but had to discontinue because I got rid on my Internet Provider for awhile. I received many products including cologne for men, dog food, cannerd soup and several others. I re-joined in July last year and now qualify to receive up to $30.00 in cash! Just for taking surveys. I highly recomenned it.
http://www.surveyfavs.com Callie

@MsEdrena:

Hey Lady,

Oh yes! I’d like to have a page from that book alright. I’d place it on my fridge & computer along with other daily reminders that help me focus on reaching my goals, and dream vacation destinations. It’s definitely not too late! lol
Marsha

Hi again, Eddy. I WOULD wish you a speedy recovery – but you’re in Puerto Rico, so….

Kidding! Seriously, I hope you’re feeling better. Anyway, I just stopped by to say thanks for all the great info and advice on your site. I signed up for Amazon Mechanical Turk last night – so far I’ve made $8.31!! ( Me=Happy) I’ve never done transcription a day in my life, but the ones I submitted were accepted – and one of them even awarded me a bonus. You’re doing a good thing here. I will be recommending your site to anyone who listens. Again, thanks! Much continued success to you.
http://www.workathomecareers.com Eddy Salomon

Lee,
Thanks for the kind words and acknowledgement. I really appreciate it!

Curtis,
No worries. It happens all the time. lol By the way I have reviewed Synovate here: http://www.workathomenoscams.com/2008/08/18/synovate-global-opinions-panel-scam-or-not/

Marsha,
Damn that was cold! lol No but you’re right. Being in PR was actually very nice. I think sitting near the ocean actually sped up my recovery. I wish I was back there now. But alas I’m home. lol In any event, thanks for letting me know that you took action and joined mturk! Doesn’t it feel good to make money at home? Goes to show when folks take heed they can do it. But thanks again for coming back and letting me know. I never get tired of hearing it and it inspires others to take action. I appreciate that you’ll be recommending my site. Continue to spread the love!

Weekly Work At Home Recap 04-16-2010

Work At Home & Taxes

Monday 4/12/2010

Tuesday 4/13/2010

Wednesday 4/14/2010

Thursday 04/15/2010

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