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Originally Posted by OverdueNudes
So i'm responsible for looking at my revenue? They don't have to send me a 1099?
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Yes, when you work for yourself you need to keep track of this stuff yourself.
Some will say that if you don't get a 1099 that the IRS won't know about the income, and while that is probably true you could be audited down the road. So by under-reporting you are gambling that you won't be audited in the next few years. If they do audit you, you'd have to pay back taxes plus heavy $ penalties.
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Originally Posted by OverdueNudes
I should assume any affiliate with my social security number is reporting my income?
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No, but see what I said above. And that includes non-US sponsors. Naturally, they don't deal with the IRS at all, but an audit could turn up that income.
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Originally Posted by OverdueNudes
And what about affiliates in which I made a sale, but have not yet been paid due to minimum payout amounts?
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It isn't income until it is money in your hand.
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Originally Posted by OverdueNudes
After a lot of research my main question is how do I prove my expenses?
I'm certain I have to file a Schedule C(sole proprietorship), but I don't really have receipts for things like Traffic, Advertising, Hosting, Design Work. How does everyone else file these?
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Email these people and have them send you a receipt, even if it's just a line of text like "10,000 hits sold to John Doe on 1/1/09." If you paid with PayPal or ePass, there is also a record of the transfer there to go along with that.
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Originally Posted by OverdueNudes
Also, does anyone know what to call the "principal business or profession"? I just run a TGP is all. I'm having trouble finding the activity code.
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I don't recall mine, but it's probably the same advertising code as PersianKitty's above.
Also...........
H&R Block and TurboTax both offer their online Federal system for free. Then you pay a fee that isn't bad for state taxes. This way it's all fill in the blank and you don't need to figure out what forms you need.