.Well, eventually April is going to roll around, and this is needless to say my first year in OTs. (Well, let me specify, not my first year, I've been making OTs since '05, but my first year making donations.) And I wanted to know what the 'ol pros know about paying taxes (in the US) when that time comes around.
Discuss~
. First you do need to file anything made/"donated" even if it is through PayPal. PayPal does not send any reports to the IRS although if you got audited or your family got audited PayPal will be forced to give information. Essentially reporting your earnings made on PayPal is on the same honor system as cash tips. Technically you must report all cash tips made as a bartender and such but do people normally report them? No. It is completely up to you. Do you have another job? If you do then I would be less inclined to report them, although if you have no other source of income I would consider reporting them. Another thing to consider because you are your own employer you will be paying taxes you definately wont be getting money back. For example, I'll speak for the fed since everyone pays the same taxes to them, being a minor and making roughly 7500 in the previous year you would owe around 300-400 in taxes if you claimed none. This would not include any state taxes you may owe in Cali (I think is where you are from if I remember right...)
