Do you have to claim income tax?

[Sharon]

If you are running a successful forum/website and you are actually generating income from it (more than the cost to run it and everything) do you have to claim your revenue at the end of the year when you do taxes? ...or is this only applicable if you run your site as a business (with a business license)?

 

[ddoesmc]

I'm glad that I don't. That would be very complicated. I believe FP does.

 

[Scribbler397]

Yes! It is considered income. If you are in the US and make above (I think it is $600 per year) you must include that in your income tax.

If you are making an income on your site, I would honestly incorporate into an LLC. It protects you and the income you are making from your site.

 

[Thomasss]

I would not make the forum a LLC, that's just expensive. 😛

Agreed with Scibbler, if the donations make over $600 I think you have to claim it, however I honestly do not know many forums that make over $600 a year so it's not really heard of forums claiming it, let alone becoming a legal business. 😛

 

[Joshua Farrell]

My father runs his website as a business persay, and he claims his earnings against his taxes, and also his business expenses aswell. Generally speaking, if your earnings is enough to be a good amount, but don't earn enough to cover the expenses all the way, you can get your expenses back at the end of the year, if you claim it in your taxes.

 

[Jerlene]

Only if you make above $600 in the fiscal year.

 

[Allenafaith]

I don't and I am glad. It does seem pretty confusing.

 

[pandaa]

Technically, yes. As far as I know, you are supposed to report any income you receive in the US, even if it's only a little bit. However, you're honestly not going to get in any trouble if you don't, unless you happen to be making quite a bit and get audited.