# Commissions and Taxes???



## Jackett (Feb 24, 2017)

Hello everyone, this is my first post on the forums and I hope I put this in the right section, if not I apologize.. it's just something I have been wondering about for awhile, and I'm having trouble trying to find straight answers through Google, so if anyone can give me information that would be very much appreciated <3

I just want to know that if you make a lot of money from commissions using PayPal, how do you go about doing taxes? Let's say I make enough from commission work to cover my living expenses and use that as my source of income.... what do I have to do to ensure that I won't get in trouble with the IRS? Will I have to get a self employment license? Do I have to send estimated taxes to them throughout the year, or would I just do that with my 1099 form during tax season? Also I should note that I live in the US :'D 

Thanks!


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## Ashwolves5 (Feb 24, 2017)

I learned a bit from this www.freelancetaxation.com: Taxes for Freelancers, Artists, Writers and Psychotherapists

I know some of it is also circumstantial if you can and how.


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## Newman! (Jul 18, 2018)

You have to be aware of giving taxes. You have to submit 1099 form. You can check this guide.


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## PrivateCompanyMan (Jul 22, 2018)

Here are some basic tiers,

The IRS views anything you do that nets you less than $5,000 annually as a hobby and it doesn't require to be stated on your taxes etc. 

PayPal will lock your account if you pass $20,000 gross within a year and require you to enter your complete SSN so they can report the gross earnings as required of them by the IRS (you'll see similar limits on other such merchant sites). This is really the only point where you should concern yourself with having your ducks in a row for the fiscal year.

I would not concern yourself with incorporating or reporting anything until you're making enough to do anything full-time as your sole focus. Familiarize yourself with your state's Sole Proprietorship taxes, laws and licenses and best of luck breaking 20k and actually needing any of that info.


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