Work at home income is considered taxable income so it should be claimed at tax time. If you earn an income from any source, it shoudn’t be considered tax-free. Take care of your taxes promptly to avoid being audited.
Do WAH Jobs Take Off Tax?
Some companies that pay telecommuters pay them and withdraw applicable employment taxes with you if you work directly for them but the vast majority of companies leave you to deal with your own taxes. Whether or not you get any type of W-9 or T-4, etc at tax time, you are not off the hook.
What does that mean?
It means you need to be organized if you’re making an online income from many sources. Freelance professionals should consider buying tax or accounting software that enables them to track their work invoices and their expenses.
Some work at home professionals submit quarterly reports to their government and some experienced internet professionals hire an accountant. Here are some tips:
Track Your Income and Your Expenses
- Assign a work order # to each client you work with. You might create a system based on a software package or even on a spreadsheet with numbers you’ve assigned.
- Keep all bank statements and note any income that came in through direct deposits, and cheques.
- Keep track of payments received through places like PayPal or Wire transfer companies such as MoneyBookers.
- Keep track of your expenses.
Expenses may be helpful to you at tax time as a self-employed individual so keep track of office supplies and other expenses related to your at home job.
Living on a budget is necessary whether you work outside the home or work at home. Some wah jobs pay regular pay cheques just like any other job but many are freelance jobs and you could have feasts and you could have famines. You can also find yourself waiting for what seems like forever to get paid.
You’ve got to pay your bills like everyone else and you’ve got taxes to pay for WAH money as well so budgeting is vital.
Visit The Money Jar Budgeting site for tips on living on less and putting more cash back in your pocket. Work at home jobs can pay well but sometimes payments are erratic. Learning to live on a budget and putting away money for a rainy day can make it easier when you don’t have a regular weekly paycheque.
There are so many potential online jobs for you if you’re looking to do a WAHD / WAHM / telecommuting job. There are dozens more than just these so if you want more information, delve further into my blog, here.
Here are some ideas for you:
- Virtual Assistant
- Affiliate Marketer
- Dropshipping Business
- Freelance Blogger
- Freelance Writer
- Virtual Assistant
Companies will pay you to work for them in many capacities. Some will pay you to be on call and others will offer freelance opportunities for things like order taking, receptionist duties, telemarketing, bookkeeping and more. There are many bidding sites and job boards where you can find these types of jobs.
You can buy and sell products and services online by pointing people through your site to an affiliate link. The link will generate a commission for you when someone buys your product. Internet marketing businesses can be huge earners.
You can set up wholesale stores and eBay businesses online and set up a virtual store. You don’t have to inbventory anything. When people buy from your store it ships direct to them via the wholesaler and you simply earn the commission. This can be very lucrative
You can blog for yourself or ghostblog or ghostwrite for others. There are loads of copmanies out there that now run blogs for their websites. Many of them want people to post for them on their site. You can also post on your own website for advertising revenue.
Good with words? There are plenty of freelance writing opportunities on the web. Much like with blogging, companies will pay you to write for them for web copy and for offline content as well.
The internet provides endless wah opportunities. There are scams and there are great opportunities as well. Familiarise yourself with what’s available so you can make a decision about which area or areas to approach.
You can make a full or part time income with your computer doing all kinds of things.
Want to make spare cash? Paid Survey Info
PayPal is a company owned by eBay that allows you to buy online without a credit card. This service can also be used to get paid for your online income. The way it works is quite simple and best of all, it’s secure.
Why Use PayPal?
PayPal is like a go-between service between the Internet and your bank account. If you receive money in PayPal, you can transfer it to your account without revealing personal financial details and if you want to buy something online, you can transfer the money to someone else. In the WAH world, getting paid is the whole point to it all and by having PayPal you can earn money without waiting for cheques to arrive in the mail.
Setting up Your Account
Setting up an account is simple. Sign up at: www.PayPal.com and enter your details. Be sure that you have your bank account information handy as you’ll need to input it. Information needed is avaialble on your personal checks and if you need specific information about bank transit numbers, etc. you can contact your bank or visit their website.
Once your details are in, you’ll need to watch your account. PayPal will send you two small deposits (generally below $1.00 each) and to confirm your bank account, you’ll need to input those exact amounts into the PayPal system which happens within a few business days. Then you’re ready to start using your account. Someone can pay you by having your e-mail address associated with your PayPal account and once you’ve received a payment, you’ll get an e-mail notifying you the payment is either live or pending clearance of an e-check.
Lead Time for Payment Clearance Through PayPal
Generally, e-checks take 5-10 days to clear and for most people, PayPal transfers into your bank account take 2-3 business days.
There’s a lot that can be said about getting paid to blog. So here at The WAH Blog, we’ll be approaching paid blogging often.
Here are 3 ways to get paid to blog:
You can open a free blog and put Google Adsense on it.
You can also get paid to post on your blog from other sites like PayPerPost, Blogitive and Blogsvertise or as a professional ghostblogger.
You can use your blog for affiliate marketing advertisements through companies like PepperJam and Commission Junction.
You can start your own blog on your own domain or you can sign up with Google’s Blogger or WordPress. Whatever you choose to do, there are loads of free resources on learning to get paid to blog. It can be fun and it can be a profitable and flexible wah job.
Today.com/apply is hiring VIP bloggers. You can pick your subject and get paid to post every day. On a monthly basis they evaluate your blog and can increase or decrease your per-post rate based on your blog’s performance and potential. They pay monthly via Paypal and are a great network with contests, prizes and freebies.
Paid blogging can be done on your own or in a blog network and you can also do ghostblogging as well. Many companies will pay you to blog on their site. Blogging is great fun and can be great for boosting your website’s exposure online. Monetizing your blog is something you can do if you do the blogging yoruself and if you’re on a network, the network will monetize the blog for you.