Tax Time!!

[Shaggy]

I have a quick question. Should USA residents be expecting a W-4 for SEDO? Have they been 1099'ing us every month?

 

[gariben]

Do you mean W-2? W-4 Forms are forms to tell IRS how much to withhold your federal taxes. They won't give you W-2 because then they will have to pay 1/2 of your SS/Medicare cost, maybe even have to provide you some benefits like disability insurance, etc.

1099 is the most accurate form of reporting as it is work preformed out of their office and not necessary at office hours.

 

[URLtrader]

Since they are basically a German entity, are they supposed to follow IRS guidelines?

URLtrader

 

[fatter]

they are actually based in USA this year under LLC, so they will have to follow US laws, I think there new office is in Boston

 

[Theo]

1099 is the form, however AFAIK these are only mailed out if the income exceeds $600 per annum. I emailed Nora and I'm waiting on her response.

 

[HardwareGeeks]

yeah you should expect a 1099 form if you make more then 600, you should recieve it by the 2nd week in Febuary as they have to be postmarked by the 31st of Jan or they are in violation of the law.

If you didn't make more then 600 with them you will still have to file taxes you will just have to list the money they paid you in the additional income field on your tax return. Although sedo doesn't have to send you a 1099 form if you made under 600 they will still tell the IRS they sent you the money.

 

[Theo]

Considering Paypal keeps a chunk of the payments, that's double-taxing already.

 

[HardwareGeeks]

Considering Paypal keeps a chunk of the payments, that's double-taxing already.

Then you deduct the paypal fees as a business expense

 

[dmyre]

Just reinvest your money, and claim a loss every year.

 

[Shaggy]

I make well over $600 a mnoth with them. So I should be expecting a 10099 form???

 

[SirSpider]

Yes, if they comply with U.S. tax laws, you should receive a 1099 form within the next couple of weeks.

The affiliate companies I deal with have been good about getting the 1099s to me by the end of January for each of the last three years. This year I get to see how good Google is at mailing the forms. :undecided

 

[HardwareGeeks]

By law they are suppose to have them postmarked by the 31st of January. If you don't get it by the 2nd week of Febuary call the IRS to complain. It won't get the 1099 to you sooner this year but next year I gurantee it will be on time.

 

[eSology]

Another tax question -- does anyone have an EIN/TIN or do you just use your social?

 

[768768]

Another tax question -- does anyone have an EIN/TIN or do you just use your social?

I have an EIN. Actually I have had it for a number of years for a business I run. But no matter how many separate businesses you have you use the same EIN. You may apply and get one from the IRS via the phone now. But, sorry, I don't have that number. Although I believe it is 1800taxform for any forms you may need.

 

[HardwareGeeks]

I have an EIN/TIN
their the exact same number I think the Feds and my State hooked up together to give me the same number.

But the EIN is linked to your social so you can use either or when filing taxes or when using it for business. Better to use your EIN when dealing with businesses though.

 

[Theo]

Sedo sent out an email to anyone who qualifies for a 1099 - requesting additional info. Anyone received that email?

 

[eSology]

Thanks for the info. I have my LLC already. Today I have been trying to catch up on my to-do list which includes the EIN paperwork. I have the toll free IRS number and noticed you can also apply online now. Here is the real dilemma, if you read about LLCs it states that an LLC as a sole proprietor doesn't need an EIN.

 

[768768]

...I have the toll free IRS number and noticed you can also apply online now. Here is the real dilemma, if you read about LLCs it states that an LLC as a sole proprietor doesn't need an EIN.

I am not very familiar with LLCs but I do know most sole proprietorships don't require one either... I don't have to have one... but I do. As Hardware said, better to use one when dealing with businesses. Just looks more professional and for safety.

I don't know how it works online but if it's a last minute thing when doing it via phone the person is able to give you your number right then instead of waiting for snail mail.

 

[fatter]

I use my SS number, which is fine for if your not incorperated, I use it for my delivery business as well, for sole proprietorship

 

[eSology]

I just bit the bullet and did it. Have my EIN now.