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  1. #1
    Newbie
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    January 18th, 2005
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    hello. i make over $500 a year, and i got this message on my clickbank account: "This account has earned over $500 as an affiliate in 2004.

    If you report ClickBank earnings on your personal tax return,
    the IRS requires us to file a 1099 on your behalf. Please
    verify that we have your correct SSN on file, in this format:
    999-99-9999. Also note that IRS rules call for a $50 fine if
    the SSN you provide is not correct.

    If you report ClickBank earnings on your business tax return
    instead, we need to confirm this. Please verify that we have
    an EIN on file, in this format: 99-9999999"


    do i have to file for taxes? what if i don't ? how do i file for clickbank taxes anyway?

    thank you

  2. #2
    Affiliate Miester my2cents's Avatar
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    yes...

    If your total earnings from all sources are over $600 you are required to file...

    Joe

  3. #3
    Newbie
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    If you are smart you will be keeping track of all your expenses. Items such as internet service, postage, web hosting, perhaps a portion of your phone bill and other such things that you use as you conduct your business. You will need a Schedule C fro the IRS. On this form goes all your expenses as well as income. After completing this form there is a place on the 1040 form where this information goes. Real simple. Any other questions just ask. I am an accounting major.

    Sam Wilson


    "The man who has no imagination has no wings"

  4. #4
    Content $ Queen Ebudae's Avatar
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    Sam, I have a question for you.

    If you take pictures and then sell the pictures on the internet (like cafe press) - can you take off your expenses like the film, gas to get there, camera, tickets into an event, motel expense if you stay overnight, etc..?

    Thanks!
    Ebudae


  5. #5
    Affiliate Miester my2cents's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Ebudae:
    Sam, I have a question for you.

    If you take pictures and then sell the pictures on the internet (like cafe press) - can you take off your expenses like the film, gas to get there, camera, tickets into an event, motel expense if you stay overnight, etc..?

    Thanks! <HR></BLOCKQUOTE>

    yes.... all reasonable expenses..

    JOe
    ++++++++++++++++++++++++++++++++++++++++++
    that's my2cents, 'cuz I'm a legend in my own mind....

  6. #6
    http and a telephoto
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Ebudae:
    Sam, I have a question for you.

    If you take pictures and then sell the pictures on the internet (like cafe press) - can you take off your expenses like the film, gas to get there, camera, tickets into an event, motel expense if you stay overnight, etc..?

    Thanks! <HR></BLOCKQUOTE>
    Yes. I am a professional photographer and have been filing as such for many years. Creating the images is part of your business.

    But if you take photos on vacation, then only the "business" part is deductible. So 50% fun 50 business or something like that. My trips were/are always photo oriented so costs are deductable.

    As always, check with your own accountant for exact specifics.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  7. #7
    http and a telephoto
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    BTW, camera is a capital expense, not a discretionary expense, so although you can probably take the deduction all in one year, you need to list it differently.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  8. #8
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    I think everyone is accurate about the deductions. However there is one wrinkle that I have seen in terms of deductions and business expenses. For example, a person who is a photographer goes on vacation. He takes many pictures that he or she in turn sells on the internet. Was the trip business or pleasure? I have seen(I prepare taxes) individuals who take trips for business meetings and conferences and the like. They are there for business but, they work in R&R while on the trip. In doing so a larger % of the trip is tax deductible. Shrewdness and good judgement is neccessary but I think you can see where I am going. There are a number of ways to have a working vacation. And in your case Ebudae it would be easier than a number of other professions. Why? No doubt your profession is one of business and pleasure anyway. Am I rambling. I get dizzy when I stare at the screen too long.
    Seriously, I enjoy any questions financial.
    And I love ABW!!!!

    Thats all for now. Later.
    Sam Wilson



    "The man that has no imagination has no wings"

  9. #9
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    If we belong to 20 different Affiliate programs, then do we have to put down all those different Affiliates each on our tax returns? Does it look like we worked for 20 different companies in one year? Are we considered employees of these merchants? Also, what do we put down as our occupation if this is going to be our only income? Tax season always drives me batty

  10. #10
    ABW Ambassador swampy_webber's Avatar
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    newbiee,

    You will receive a 1099 from each of the ones that you will need to report. This should correspond to any you have received checks from. (CJ=1 1099)

    You will need to report that income. Hope this helps???
    Life is like a dogsled team. If you ain't the lead dog, the scenery never changes.

    -- Lewis Grizzard

  11. #11
    Moderator MichaelColey's Avatar
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    That's not entirely accurate. You're required to report (and pay taxes on) ALL income earned, not just income from which you received a 1099.

    You should really talk to an accountant, or at the very least look over Schedule C and the instructions for it.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  12. #12
    I like traffic lights
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    Thank you Michael.

    Seems that Swampy needs to see an accountant (possibly very urgently).

  13. #13
    "An Englishman In New York" TJ's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>That's not entirely accurate. You're required to report (and pay taxes on) ALL income earned, not just income from which you received a 1099. <HR></BLOCKQUOTE>Right and don't sweat the 1099's, my CPA says that she doesn't need them as long as I report earnings MORE than the total of all my 1099's

  14. #14
    Member
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    If you plan on making money at this you need to get organized and do it right so you don't wind up in IRS tax audit hell.

    1- Get a business checking account and have all affiliate checks made to the business.

    2- Use your business checks and/or business account debit card to pay for anything at all that can be considered a business expense.

    3- Mark a folder with "Tax Crap" and keep all receipts and whatever for your accountant.

    4- Keep all 1099's in the folder to give to your accountant when you file your taxes. Accountant will staple them to your copy of your tax papers. (You will be glad you have all pertinent papers if you are ever audited.)

    5- Get one of those cardboard file boxes at Office Max to keep each year's tax receipts, cancelled checks, etc. You have to keep all this stuff for 10 years.

    Don't forget to write off a portion of your house expenses, since in this business you obviously work out of a home office.

    Also, start adding everything up in about November. If you made too much money and don't have enough in deductions go out and buy a new computer, or a new desk, new filing cabinets, or whatever you would like to have for your home office .. otherwise you'll just end up giving the money to Uncle Sam.

    You might as well have something you can enjoy for that money instead of having nothing more than a cancelled check to the IRS.

  15. #15
    ABW Ambassador swampy_webber's Avatar
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    Drewbert,

    No, I understood that. I do claim all income. What I meant was that the program/merchant is suppose to send a 1099 and the point I meant to make (ok, I wasn't successfull) is that for networks that do consolidated payments (like CJ) you will receive a single 1099 usually.
    Life is like a dogsled team. If you ain't the lead dog, the scenery never changes.

    -- Lewis Grizzard

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