Taxes and write offs

[OKMotorsporter47]

So I've decided to cough up the $$$ to buy a new computer and editing software. I haven't monetized my channel, so I was thinking...

How many of you report your Youtube money on your taxes?

I know what I make off Youtube wont be enough to push me into another tax bracket or anything, and I thought that if I was making money off Youtube I could say the new computer and programs could be claimed as a business expense and written off on my taxes. I'm no accountant so I don't know if I could actually get away with it. I am all about and pretty good at skirting the system! :twisted:

Anybody know if this is illegal, legite, good idea, bad idea, etc?

 

[Trinith]

I haven't gotten any money out of YT yet, but I am fairly certain they do some of the reporting for you. I don't know a whole lot about the tax system (and who does..) but I know they send you the forms just like any other job will. You might have a hard time -not- reporting it. Something else to remember, stuff you buy specifically for YT IS tax deductible, since it's a job and all.

 

[ToastToGo]

I read somewhere that you have to make a certain amount a year from YouTube before you have to report it. I think it was something like $600/yr. When that happens, Google sends you some form that you have to input into your tax return forms and stuff.

 

[MotoRick]

I read somewhere that you have to make a certain amount a year from YouTube before you have to report it. I think it was something like $600/yr. When that happens, Google sends you some form that you have to input into your tax return forms and stuff.

Technically even $.01 is taxable. The $600 is the threshhold where you are supposed to get a 1099-MISC form. Anything below $600 and the IRS will never know about it.

Related business expenses are deductible, but there are a lot of rules about what can be deducted and how much can be deducted. Be careful.

I did tax return preparation pretty much full time between 1983 and 1994. A few things have changed since then, but for the most part it's still the same.

 

[BritishMotovlogger]

I haven't gotten any money out of YT yet, but I am fairly certain they do some of the reporting for you. I don't know a whole lot about the tax system (and who does..) but I know they send you the forms just like any other job will. You might have a hard time -not- reporting it. Something else to remember, stuff you buy specifically for YT IS tax deductible, since it's a job and all.

Damn it, NOW you tell me!

So that includes the bike, maintenance, camera, SD card, new galaxy s3 phone for use of sat nav to get places for "work" new laptop (arriving soon) which is specifically bought because its more powerful than my current PC to run editing software. Editing software... How do I claim all this tax back? Lol

 

[Trinith]

How do I claim all this tax back? Lol

Very, very carefully. I think it would be interesting to see how much you can get away with claiming, but at the same time going overboard can bring down some particularly harsh results.

 

[Neilisin]

I am running my Neils.in website and vlog assets as a business, solely in the name of funding for my next big trip, I figured my "business" expenses can be offset against any bucks I earn... or in layman's any tax I'm paying in my other jobs can be offset by my business expenses in "Neil's in...", when you put it like that it makes a heck of a lot of sense. As it is I have been running 2 businesses before I thought of doing my travel blog as one too. Seems perfect.

 

[mrtommygunwhite]

Uk vloggers we are classed as offshore as google and youtube are both from the us so sorry americans its only you who have this problem

 

[Bikermole]

Uk vloggers we are classed as offshore as google and youtube are both from the us so sorry americans its only you who have this problem

Wrong.

We still need to declare this to inland revenue. Otherwise its tax evasion. Not that I earn enough to worry about it, mind.

 

[Neilisin]

As bikermole said, I think this is a very interesting topic and I am glad someone else brought it up.

I would like it to be known I would not for any other reason monetize my vlogging if it were not for the fact that I'm on a minimum wage job saving up £20k for my next trip. Pennies from whichever direction are welcome in my savings!

 

[pizzaonaninja]

I love my constitutional taxes, just a percentage of the earnings, which I don't have...

DId you know that taxes in the US are not legally constituted, and you are not legally bound to pay them? Its true.

 

[MotoRick]

I love my constitutional taxes, just a percentage of the earnings, which I don't have...

DId you know that taxes in the US are not legally constituted, and you are not legally bound to pay them? Its true.

No offense, but you're wrong.

Article I, Section 8, Clause 1 of the United States Constitution, is known as the Taxing and Spending Clause.[1] It is the clause that gives the federal government of the United States its power of taxation. Component parts of this clause are known as the General Welfare Clause[2] and the Uniformity Clause.
"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense[note 1] and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States".

I wish you were right, but you're not.

 

[Trinith]

I love my constitutional taxes, just a percentage of the earnings, which I don't have...

DId you know that taxes in the US are not legally constituted, and you are not legally bound to pay them? Its true.

No offense, but you're wrong.

Article I, Section 8, Clause 1 of the United States Constitution, is known as the Taxing and Spending Clause.[1] It is the clause that gives the federal government of the United States its power of taxation. Component parts of this clause are known as the General Welfare Clause[2] and the Uniformity Clause.
"The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense[note 1] and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States".

I wish you were right, but you're not.

I'm fairly certain that all the states have the same basic thing in their constitutions as well.

 

[24HourBiker]

You SHOULD report the earnings to HMRC (Her Majesty's Revenue & Customs), but who is going to call them and say, 'I earned £2.50 last week because i made a Youtube video'? I deal with HMRC daily and trying to get through to someone of any use is hard enough, never mind reporting your income.

It's strange really, you'd think they'd make it as easy as possible to declare your income so that they can take as much of it away from you as possible in PAYE tax and N.I contributions, but they don't...it's next to bloody impossible (luckily).

And it's not tax evasion, it's tax avoidance. Tax evasion = Illegal, tax avoidance = Legal but frowned upon.

If you REALLY want to declare it, go ahead, it's perfectly okay for you to do so. But personally, i wouldn't bother, it's a waste of time and no-one really cares.

And yes, you can claim back all the VAT you will have paid on your video and editing equipment IF YOU DECLARE IT AS SELF-EMPLOYED INCOME. Which is, again, a nightmare to do with HMRC. But will pay off in the long term, and you'll be surprised how much stuff you can claim expenses for when you really delve into the small writing.

By the way, i'm an accountant! Happy days.