Results 1 to 12 of 12
  1. #1
    Newbie
    Join Date
    January 18th, 2005
    Posts
    34
    I am a joint filer with my husband, but I noticed that when I put $1500 for my taxes from CJ my taxes is $380 but when I put $3000 (my actual amount) it jumps to $1450. Anyone know why it jumps so high? my total annual income is still $40000, should I do deductions like for my pc purchases for affiliate marketng

  2. #2
    ABW Ambassador ToughTurkey's Avatar
    Join Date
    January 18th, 2005
    Posts
    993
    quote:
    should I do deductions like for my pc purchases for affiliate marketng


    You betcha: pc purchases, webhosting, domain costs, portion of rent, internet access costs, all related software, and anything else you can think of.

  3. #3
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,086
    You probably need an accountant. You should be paying both self employment and income tax. That is probably the mystery. The up side on self employment tax...it increases what you get in Social Security benefits.

    Deductionwise, generally you depreciate things like computers over several years, and get straight deductions for expenses like web hosting and advertising and the fee you pay your accountant. Often accountants have good ideas on how to make more from your business ventures.

    boom!

  4. #4
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    641
    edited to say ...

    Ooops... went to make lunch mid-post , and some of you beat me to this basically the same reply ......

    I'd like to help you , but I don't really get your question, and the dollar amounts you talk about aren't making sense , maybe it's just me .

    However, As far as deductions go, you can and should deduct expenses like monthly internet access fees, webhosting fees, domain name renewal and purchase fees, and anything else that was a legitimate out of m pocket expense related to your internet marketing , that can also include money paid in advertising expenses (PPC search engines), to the purchase of a training book related to internet marketing, web design, etc. I don't know why anyone wouldn't, unless itemizing the deductions and slightly more complicated forms would mean the unwanted cost of hiring a tax preparer, which , by the way, is also a tax deductible expense.


    Hope this helps somewhat .

  5. #5
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    Utah
    Posts
    1,141
    quote:
    Originally posted by yintercept:
    Deductionwise, generally you depreciate things like computers over several years...


    Actually, you can now deduct a computer as a one-time deduction, due to new IRS rules. I can't remember the tax code right now, but there's a portion of the code that enables you to deduct capital expenses (like a computer) as a one-time expense, up to a certain dollar amount (several thousand dollars). Check it out.

    Michael

  6. #6
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    843
    One time expense, cost of computer(s)

    Include software bought and used for your website(s), hardware, ISP costs, hosting, domain registration, printer(s), paper, pc desks, etc.

    If you use a room in your home exclusively for your online business, you can show a percentage of the home utilities, mortgage, etc. Find a good tax person...they make it all sound like a piece of cake.

  7. #7
    Newbie
    Join Date
    January 18th, 2005
    Posts
    34
    DOn't you need to keep reciepts for everything?

  8. #8
    Newbie
    Join Date
    January 18th, 2005
    Posts
    34
    >You betcha: pc purchases, webhosting, domain costs, portion of rent, internet access costs, all related software, and anything else you can think of.

    However, I have a room at home which I do this exclusively, but my home office is where I do my affiliate marketing. Can't I not take tax deductions because of this

  9. #9
    Member
    Join Date
    January 18th, 2005
    Posts
    55
    Find a tax accountant in your area that specializes in small business (i.e. they usually have a lower hourly rate, because they realize small businesses aren't an infinate heap of money).

    Call a few from the Yellow pages that mention "small business" directly in their ads, and shop around for both price and how professionally they handle your inquiry.

  10. #10
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    4,423
    I found a good way to find an accountant (when we moved from our overpriced corporate accountants to our smaller guy), ask another business.

    I asked our plumber and an electrician, both used the same guy. After I made sure he didn't just work with trade people I signed up and haven't been happier. No more being billed $25 because I called and asked a 2 minute question.

    Chet

  11. #11
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,133
    The deductibility of capital expenses such as computers is call section 179 and it allows you to deduct up front (instead of depreciate) up to 25,000 this year...

    It sounds like you should definitely get yourself an account because there are a lot of items like this that you will miss if you don't already know about them.

  12. #12
    Member
    Join Date
    January 18th, 2005
    Posts
    155
    That is correct, section 179 allows immediate write-offs of computers and some equpiment if you meet certain criteria - Form 4562 needs to be filed.

    If you have a home office to run your business and it meets certain criteria, you can also write-off addition expenses (Form 8829 I think).

    These are legitimate deductions you are allowed to take against your business income, so if you can take advantage of them, you definitely should.

  13. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Governors that have vetoed and opposing affiliate taxes or internet taxes
    By Jorge - SHOPiMAR in forum Affiliate Tax Laws
    Replies: 2
    Last Post: February 12th, 2010, 08:39 PM
  2. 9 wackiest tax deductions for 2009
    By Adam Ward in forum Virtual Family and Off-Topic
    Replies: 1
    Last Post: March 26th, 2009, 10:05 AM
  3. Mysterious Nightly Deductions?
    By huhu in forum Commission Junction - CJ
    Replies: 14
    Last Post: April 22nd, 2005, 03:04 PM
  4. Money, Deductions and Taxes
    By Disgruntled Worker in forum Midnight Cafe'
    Replies: 3
    Last Post: February 17th, 2004, 04:31 PM
  5. Tax Deductions
    By chrisbsmusic in forum Commission Junction - CJ
    Replies: 5
    Last Post: January 4th, 2002, 12:12 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •