The Small Business Tax Help Blog

Archive for May, 2010

Question: What do I need to do, tax wise, when I’m running an eBay business?

I want to set up an eBay business with one or two friends.

I don’t really get what I have to do with taxes or anything and now I’ve just read about some employers thing.

I don’t get what I have to do, could sombody explain?
(I’ve not done any of this tax stuff before, so please make it an idiots guide)
From what I’ve got so far, I think I’m sort of getting it.

Do I just tell the government how much I make (or calculate something), then give them (they take, whatever) the money?

Also, what do I have to do with my friends involved? I think I’ll take in the money then divide it between all of us. Do they count as employees and do I have to do anything extra if they do?
I’m not sure how I forgot this, but does age matter? My friend(s) and I are all umm… 13-19 ish.

Does that make a difference?

I know I’ll find out when I talk to some people about it. Can I even do an eBay business at 14(ish)?

Answer: Just keep track of all of your sales, and at the end of the year claim them as ordinary income. It shouldn’t be hard, just set aside around 25% of your income for tax purpose… Also remember if its less than $10,000… The IRS will never find out… So if that happens just keep that 25% and put it back into your business.
Good luck!

Planet Election Guide: A pass on the property tax increase, this time.

While a measure asking voters to help pay for road repairs is a good idea, it comes at a time when raising taxes on Telluride’s business owners could serve as a death sentence.

small business guide to healthcare reform bill

Question: Earned income credit question…?

I’ am wondering if my husband can recieve the Earned Income Credit even though he didn’t earn any money last year. He is over 25 and we have 1 child. When I use the H & R Block calculator it says he will recieve it, but it doesn’t make sense that they would give him the credit without earning some money during 2008. Any help?
That’s was fast thanks for the info! Yes, we will be filing married/jointly.
Yes, I have earned income. I don’t know why I was saying “he”, I know I would qualify for EIC, just wasn’t sure if he did too.

Answer: Since you are talking about a joint return – did YOU have any earned income, income from a job? If you did, and you meet all the rules to claim EIC, then it would be applied to your joint return. Your husband is not the one getting it, the two of you would be qualifying together for it. Not sure why you say “he” will receive it though. If you are asking if his not having worked during the year will disqualify you, no it won’t. On a joint return, the couple is treated as a unit and qualifies for anything together.

General election 2010 live blog

Andrew Sparrow covers the latest general election news and events, including speeches from David Cameron and Nick Clegg, Gordon Brown on the campaign trail and a Labour press conference with Lord Mandelson 1.33pm: On Election Call, Gordon Brown has just rejected the Institute for Fiscal Studies analysis. The IFS says Labour would have to cut spending in areas where it is not committed to …

Question: I just moved to a different state do I have to file this state tax return if I didn’t work in this state?

I lived in texas for 2008 employment and they have no state taxes I just moved to california a month ago do I have to file a state return even if I haven’t worked here

Answer: If you did not live in CA or earn any income in CA in 2008 there is no reason to file a CA return.

Bear in mind that if you filed your Federal return with a CA address, the FTB may ask you to file a CA return for 2008 on the mistaken assumption that you lived in CA in 2008. Just provide proof that you did not live in CA in 2008 and they will drop the claim. Almost anything will suffice as proof, such as a copy of an old TX lease, TX utility bill, 2008 W-2 with a TX address, a CA lease with a move-in date in 2009, CA voter registration in 2009, CA drivers license issued in 2009, etc.

TransCanada Reports First Quarter Comparable Earnings of $328 Million or $0.48 Per Share, Invested $1.3 Billion to …

CALGARY, ALBERTA–(Marketwire – April 30, 2010) – TransCanada Corporation (TSX:TRP) (NYSE:TRP) (TransCanada or the Company) today announced comparable earnings for first quarter 2010 of $328 million or $0.48 per share. Net income applicable to common shares was $296 million or $0.43 per share. TransCanada’s Board of Directors also declared a quarterly dividend of $0.40 per common share for the …

Public Denied Access to “Energy Citizen” Big Oil Company Picnic