Paying taxes on stealth (under 18)

[Lunchy]

I have heard of things like an EIN and what not, but how exactly would you report taxes on a stealth PayPal. Does it matter because it is not under your name? Also, does being under 18 affect the process at all?

[purpl]

dont pay lol

[Lunchy]

So getting constant transfers to your bank doesn't look sketchy? My bank is gonna see all my money in there and they wont ask where it's coming from? That just sounds too perfect to me.

[dallis]

You declare it as business profit or loss on Schedule C and attach to your 1040 form that you submit to the IRS.

Under 18 doesn't matter. You still have to file and pay taxes. Your parents can't claim you if you claim yourself as a deduction.

Your bank doesn't particularly care, but they will issue an interest 1099, so the IRS will know you have money accumulating there, and they are the ones who will be coming to ask questions, and you'll need to be able to give them answers.

[GreenBean]

Be careful with ebay/paypal if you are going to use them.

You are under age still.

[rsot]

Originally Posted by purpl

dont pay lol

Not a laughable matter

[Lunchy]

Okay so when filing them it doesn't matter that the paypal name isnt under mine, all I have to do is report income from the business?

[Gladiator]

Originally Posted by Lunchy

Okay so when filing them it doesn't matter that the paypal name isnt under mine, all I have to do is report income from the business?

Exactly. Good Luck!

[SaiJin]

Good that you are thinking about this despite your age.

Have you thought about hiring a CPA to give you tax advices too? At least get a free consultation to see if it makes sense for you.

[dallis]

You report revenue and expenses on Schedule C, profit or loss from Schedule C goes on your 1040. There's a box for that and directions.