Do you have to pay taxes for income from online job ?

Question

Like if I am a student staying in USA to study , and I get income from a job I do online , income paid to my account accessible from USA , do I have to report that income ?
If I have income from my home country (say , from rent ) do I have to report that to ?

Do I need a work permit to do an online job ?

Answer 1

Yes, you do have to pay income taxes. Any income that the IRS does not exempt from taxation generated in the United States is taxable.

If you are a foreign student you should apply for a Individual Taxpayer Identification Number (ITIN) from the IRS. It will only be valid for tax purposes and will allow you to file a tax return.

The form you fill out for this is a W-7. Then you should file a tax return like all other calendar year taxpayers by April 15th.

You may be able to deduct certain expenses related with the operation as well if this is a self employment type position. However, I would consult an accountant or tax professional for guidance related to that.

Answer 2

Unless you are considered an employee and taxes are taken out (which probably will NOT happen), you'd file that income as self-employed using a schedule C or C-EZ, and a schedule SE. Keep good records of any income and associated expenses. Income tax will be calculated the same as if you were an employee. You'll also be paying self-employment tax, which is for social security and medicare - you'll pay a higher rate than an employee though, since you'll have to also pay the employer's half - it will work out to around 14% for that in addition to whatever income tax you owe. You should also make quarterly estimated payments using form 1040ES since taxes won't be withheld from your paychecks.

Answer 3

Of course it's taxable. All income from all sources is taxable unless explicity excluded by law. On line income is no different from any other source. But you have more important issues to address.

Since you are a student, you are not allowed to work in the US, either for an employer or as self-employed unless approved by the USCIS and State Department. By doing so you risk your visa and could be deported in the worst case. As a student, income from your home country is not taxable in the US as it would be if you were an immigrant or resident alien. By working in the US illegally you risk having the IRS treat you as a permanent resident for tax purposes and levying tax on your world-wide income. That's the "best case" scenario.

Please ignore the idiot using the handle "cw1242." His advice will get you tossed in prison. Unfortunately we have our share of fools in the US, just like any country does. He's obviously one of them.

Sigh... And "Mr Answer's" response isn't much better. Not sure where he pulled that $600 number from, but it's not based in any reality either. Tax invasion! Really now!

Answer 4

You only have to pay taxes if you exceed income of over $600 a year on online income, it don't matter that your from a different country, you are at this time living here, be on a green card or what ever, that does not exemptt you from having to pay any taxes! Your here and making an income! wheither a outside world job or internet business, if you make more then $600 in any give year you are liable for the taxes on the over exceeded amount!

But if your just here to go to college, you may be able to have your income be put into your bank account in your own county and not having to claim it on taxes! but you would have to clear that with your own country bank account!

It would be better to find out from a tax prepayer or better business bureau, or the IRS themselves!

And for cw1242 , I guess you have never heard of tax invasion and what kind of a huge mess it can make with your life! Tax invasion is refusing to claim any imcome for tax purposes, But if you work some where! Your employer turns in all wages paid to you to the Internal revenue service, and when you don't pay the taxes the IRS will be knocking at your door to take your home, car and anything else you own to pay for your back taxes, and then if it wasn't enough to pay your back taxes you get to go to federal prison and maybe for a long time! so don't tell people they don't have to pay taxes! If you think I'm lieing, go ahead and don't pay taxes, but you'll be a very sorry person when the IRS is knocking at your door!

Answer 5

Technically there is not a single law or statute that says ANYONE has to pay income taxes. If anyone disagrees with me please show me something that says we are legally required to pay taxes.

Answer 6

I'm quite sure