<br/> <br/> <br/> <br/> <br/><br/>Any money produced by means of your Internet Marketing work counts as income. That income must be reported to the IRS and you need to visit the site pay taxes on it. Unfortunately, money attained online isn't tax free. Don't believe any person who tries to express to you anything that is different. After all, you don't really want to get into trouble with the IRS do you? There aren't a lot of things which are worse than getting audited! Of course, if you've never needed to handle your own taxes before, figuring out how to track your income and expenditures and what you owe can be very confusing. Here are several tips to help you out.<br/><br/>It is incredibly important that you keep track of the amount of money you make. These files have to be very detailed. Record every single payment that you get, who paid it to you and what exactly the payment is for. The date of the payment needs to be recorded too. You can keep these records in a home accounting program like QuickBooks or in a technique you come up with on your own. Some individuals find that a straightforward Excel spreadsheet works best for them. Do not simply toss out these types of records after you've filed your taxes. You should keep them on hand for at least a few years just in case someone from the IRS wants to see them. Some say that, after 36 months, if you haven't yet been audited you will be okay, but check with the local tax rules of your state.<br/><br/>Keep all of your receipts and invoices for your costs. When you earn an income in IM, there are a lot of items that can be deducted from your taxes. Your web page operating charges, for example are usually tax deductible. Money you spend on company supplies can also generally be deducted. Do you go to meetings? Ask if you're able to deduct your traveling costs and the cost of the conference. Sometimes even some of the money you put toward your internet bill may be deducted as well. It is important to maintain records and duplicates of all of your receipts and payments so that you can prove what you have spent.<br/><br/>Pay taxes over the course of the year. Internet Marketing is formally a kind of freelance work and most freelancers pay toward their taxes on at least a quarterly basis so that, when the end of the year rolls around, they won't need to pay as much. A good rule is 30% of your earnings for that quarter. There is actually a system in position now that lets freelancers pay toward their taxes every month. Keep track of just how much you pay. When you post your taxes in for the year, if you have overpaid, you'll be given a refund for that amount!<br/><br/>There are plenty of methods to make your taxes easier to handle when you work in Internet Marketing. The IRS's internet site has a wide range of useful hints that you can use to streamline your book keeping and tax prep. If you are generating enough money to do so, you might even hire an accountant to take care of everything for you.