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Hi Everyone,
I registered in US Amazon Affiliate Program. Everything was going well. I created the text and Image links. But when I was filling the Payment method, I was
Hi. If you look down further, you will see what msdj8163 had to say about this subject, and they are a paralegal with good advice.
My understanding:
In the US (or US citizens), if you earn over $600, you'll receive a 1099 from Amazon, or any other affiliate program, so that you can file that income on your income taxes (schedule C - self employment income). Obviously, you can also submit all your business expenses so that you only pay taxes on your profits. Therefore, you need to supply either your SSN number or a Tax ID number when you sign up as an affiliate. In many states, you can register and get a tax ID number if you're unwilling to use your SSN number. I use my SSN number because it's a lot easier.
By the way, paying taxes on profits is far better than paying taxes from your pay check. Taxes on profits are only calculates after you subtract your expenses. Taxes from your paycheck are calculated on your gross income - before expenses ;)
Hi, I would like to know as well since I live in Mexico and would like to take advantage of this program. As my Europe friend, we will not be paying taxes in the US so is the solution just to put N/A?
The general answer is that you do not need to provide tax information if you are not a US citizen or resident. I found the answer on Amazon. There are treaties the US has with other nations as to the amount you can earn in the US and not have to pay tax in the US. Beware you may have to report your earnings in your own country. If you have any other questions, you should seek the advise of an accountant or our accounting professional.
I wanted to clarify my comment below. An LLC is a limited liability company. You can be a sole member or the sole owner of the LLC. There is a filing fee to set up the LLC with your state government and you will need to usually file an annual report just confirming the LLC is still in existence each year. There may be a fee involved. You need to further investigate as each state is different. This is not intended to give you legal or accounting advise but guidance. As a paralegal, I cannot give you legal advise but make suggestions as to what course of action you have available.
This is very good suggestion. My husband is also suggesting to set up a LLC. I also understand that I need to pay taxes but I am just starting in this line and not sure if there is going to be any income. To start with, I was planning to just register there for now and pay taxes at the end of year. I don't want to go in all these complications right now but I guess there is not much choice.
Amazon is ask you for the information to produce a statement that you will receive in January of next year stating the earnings you made in 2013. You have two options. You can give your social security number. Or you can set up an LLC and obtain a tax identification number. Then you would register under the LLC name and use the tax identification number. An LLC can be established using the forms online from the state you reside. Then once the LLC is established you can online obtain a tax identification number. You may want to talk with an accountant or attorney for more information. You will have to report this income as Amazon will send a statement to the IRS. If this information is not on your tax return, they will inquire. Remember any income you make here on WA should also be reported as well on your tax returns. The IRS is monitoring Pay Pal accounts. This is not intended to give you legal or accounting advise but guidance. As a paralegal, I cannot give you legal advise but make suggestions as to what course of action you have available.
I'm glad you brought this out. This is also my concern. I will be following through this discussion. Hope we will get some feedbacks from those who have been in the business for quite sometime already. Thanks in advance.
I know betcha....its really a concern. I think there are pros and cons of living in US. We have direct deposit option but we need to give our SSN.
Sorry, I don´t have a clue. I live in Europe and also would like to know how to handle this item. If anybody does know, please contact me.
I don't know about US residents needing the SSN but I am non US and didn't need one, I think I just put N/A or something like that or skipped it.
See more comments
Amazon Affiliate Program - Tax Information
Hi Everyone,
I registered in US Amazon Affiliate Program. Everything was going well. I created the text and Image links. But when I was filling the Payment method, I was
Well, I guess I should just wait on this whole Wealthy Affiliate stuff. I'm underage and I don't have a job, and I don't want to run into any problems with the IRS if they see me making money from paypal from other affiliates. :(
Hi. If you look down further, you will see what msdj8163 had to say about this subject, and they are a paralegal with good advice.
My understanding:
In the US (or US citizens), if you earn over $600, you'll receive a 1099 from Amazon, or any other affiliate program, so that you can file that income on your income taxes (schedule C - self employment income). Obviously, you can also submit all your business expenses so that you only pay taxes on your profits. Therefore, you need to supply either your SSN number or a Tax ID number when you sign up as an affiliate. In many states, you can register and get a tax ID number if you're unwilling to use your SSN number. I use my SSN number because it's a lot easier.
By the way, paying taxes on profits is far better than paying taxes from your pay check. Taxes on profits are only calculates after you subtract your expenses. Taxes from your paycheck are calculated on your gross income - before expenses ;)
Hi, I would like to know as well since I live in Mexico and would like to take advantage of this program. As my Europe friend, we will not be paying taxes in the US so is the solution just to put N/A?
The general answer is that you do not need to provide tax information if you are not a US citizen or resident. I found the answer on Amazon. There are treaties the US has with other nations as to the amount you can earn in the US and not have to pay tax in the US. Beware you may have to report your earnings in your own country. If you have any other questions, you should seek the advise of an accountant or our accounting professional.
I wanted to clarify my comment below. An LLC is a limited liability company. You can be a sole member or the sole owner of the LLC. There is a filing fee to set up the LLC with your state government and you will need to usually file an annual report just confirming the LLC is still in existence each year. There may be a fee involved. You need to further investigate as each state is different. This is not intended to give you legal or accounting advise but guidance. As a paralegal, I cannot give you legal advise but make suggestions as to what course of action you have available.
This is very good suggestion. My husband is also suggesting to set up a LLC. I also understand that I need to pay taxes but I am just starting in this line and not sure if there is going to be any income. To start with, I was planning to just register there for now and pay taxes at the end of year. I don't want to go in all these complications right now but I guess there is not much choice.
Amazon is ask you for the information to produce a statement that you will receive in January of next year stating the earnings you made in 2013. You have two options. You can give your social security number. Or you can set up an LLC and obtain a tax identification number. Then you would register under the LLC name and use the tax identification number. An LLC can be established using the forms online from the state you reside. Then once the LLC is established you can online obtain a tax identification number. You may want to talk with an accountant or attorney for more information. You will have to report this income as Amazon will send a statement to the IRS. If this information is not on your tax return, they will inquire. Remember any income you make here on WA should also be reported as well on your tax returns. The IRS is monitoring Pay Pal accounts. This is not intended to give you legal or accounting advise but guidance. As a paralegal, I cannot give you legal advise but make suggestions as to what course of action you have available.
I'm glad you brought this out. This is also my concern. I will be following through this discussion. Hope we will get some feedbacks from those who have been in the business for quite sometime already. Thanks in advance.
I know betcha....its really a concern. I think there are pros and cons of living in US. We have direct deposit option but we need to give our SSN.
Sorry, I don´t have a clue. I live in Europe and also would like to know how to handle this item. If anybody does know, please contact me.
I don't know about US residents needing the SSN but I am non US and didn't need one, I think I just put N/A or something like that or skipped it.
See more comments
Well, I guess I should just wait on this whole Wealthy Affiliate stuff. I'm underage and I don't have a job, and I don't want to run into any problems with the IRS if they see me making money from paypal from other affiliates. :(