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Yep, taxes must be paid on online income. If you have heard otherwise, then it is misinformation. And yes, the IRS really is paying attention. If the IRS believes that you have the incorrect income reported, then they will come after you with an audit. But, do not obsess about this. If the correct income and expenses are reported, then you do not have anything to obsess about. Also, this includes paying the right amount of income tax yearly. Don' t let all of this scare you. These suggestions can help you with your taxes. Hold on to your payment receipts. Did you go out for coffee with a potential client? Did you get new writing pens for your business ventures? Did you have to get a new software package in order to keep up with the latest program on your computer? Each of these expenses are allowed as tax deductions, but you must hold on to your original receipts to do it. This is why you need to keep track of every last expenditure you make. Keep the receipts in the same place and write down what kind of expense it is. If the receipt totals and the amount your claimed on your taxes do not match, then you will have problems with the Internal Revenue Service. So, do not throw away any receipts. You may consider this to be such a hassle, but it will help you overall. If you are on a tight budget and an accountant is out of the question, you can get bookkeeping programs for your computer. Two great programs that offer a solution for taking care of your bookwork are QuickBooks and Quicken. This will organize your records so you can identify items like tax deductions. Some will offer the option of filling out your tax information, as long as you have picked out the correct forms. The key with programs like this, though, is to make sure that you keep them updated with all of the new tax forms and laws. You could be in trouble if you adhere to the wrong regulations. If you want to hire an accountant make sure that you ask for personal recommendations from other entrepreneurs and Internet Marketers you know. There are a lot of scam artists out there that are just itching to take your money and run. It's better to check references and to work with someone that you know has experience working with freelancers and non-traditional businesses. By doing this you will be able to feel a little more secure about your standing with the IRS. There are tons of ways to make your tax liabilities less overwhelming. You may have always had an unsettling feeling when it comes to your taxes; this should not be a problem ever again. Once you take on the task of gathering information, you will be well equipped to file your taxes, or you can hire it done for you. It really isn't all that difficult; you just need to take the leap!
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