‘Do You Owe Taxes On Money Made Online?’ by John Chow
Chow says, “For this episode of Driving with John Chow, I answer the question, do you owe taxes on money made online. The time is perfect since it’s tax season.
The short answer is yes. If you make money online, the IRS will want their cut. For tax purposes, online income is treated as business income. If your Internet business isn’t incorporated, the income is added to your personal income and taxed at your marginal tax rate.
Because the income is treated like business income, you are allowed to deduct the related expense require to run your business. Stuff like web hosting, design work, programming, cost of domain renewal, email list, business travel, are all deductible”.
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