How can some one make money online without it being called and income for tax purposes?
I am in the middle of building a website. But, I do not want to pay taxes so I am limiting the website the best way that I can legally so I don’t have to deal with them. I overheard of someone who makes alot of money a year online, and doesn’t have to pay taxes.
Was this ever a true statement or is it an internet myth?
Any money received from any source whatsoever is considered income under federal law. You might have talked to someone who hasn’t paid their taxes yet (but will when the IRS catches up to them), but you did not talk to someone whose money is miraculously not money when tax day comes. Because the IRS’s enforcement division can sometimes be slow to get zeroed in on someone, people often think they’re getting away with not paying taxes or filing returns, when the fact is that they’re just a few months away from receiving their first of many pieces of mail from the IRS. If you set out to intentionally avoid paying taxes, as your question indicates, you might even have the extra bonus of facing criminal charges, on top of being required to repay the tax debt.
If it’s true, they are breaking the US tax laws. A US citizen is liable for taxes on their WORLDWIDE income, no matter how it is earned….even if it earned illegally! Remember, Al Capone was put away for tax evasion.