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Hi. You don't need a taxpayer ID number (other than your SS#) unless your website (and the income generated) is owned by an entity (other than as an individual). For example, if the website is owned by a corporation (and you are a shareholder in the corporation), then you need a separate TIN. Otherwise, all money earned by you on your website will be reported on your tax return under your SS#. (BTW - if you haven't set up a separate entity, people often do so to protect themselves from unlimited liability)
This is just a general explanation. If you have an accountant that does your form 1040, just give them a call and they will give you the entire lowdown. Otherwise, check out the IRS website and check out either the forms section or publications section.
I've read that when you start making over 500$ USD you should start complying to taxes, but I can't seem to find the darn link! It might not be true, either. know Adsense asks for your SSN, but that's just for identification reasons. Chears.
As for as i know, in theory ofcourse, all revenues you have should be reported!
But who reports all those things, all those small revenues ... so if you stay beneeth 1000$/ year i'd say don't bother. (On the other hand i'm not an economist )
I thought most companies asking you for your taxpayer ID or SSN are doing so that they can send you a Form 1099 (which they also send to the IRS) to report income paid to you by that company.
If you're in the US you need to report the additional income. You don't need the tax id though, you can just report it along with whatever other income you may have under your social. I would definetely recommend this if using something like Google adsense which reports any income. I also believe paypal can report any transactions to govt. as well.
If you make money, you are legally obligated to report it to the IRS. That being said, I believe the only times the IRS is notified about the money you make is if the third party sends the IRS a Form (like a 1099, a W-2 , etc..). I also believe that the third party sends you a copy of whatever is sent to the IRS (when I was an employee of a company, they gave me a W-2 at the end of the year and also sent a copy to the IRS). Hope that helps.
I forgot to mention that I think you need to make a minimum amount before you have to file a tax return. But that threshold is really low. I bet its on the instructions of the Form 1040. Any accountants around that knows the magic number?
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