Taxes
TO lpxxfaintxx;
As for the amount of expenses you have (I am not an attorney), let me give you an example;
My daughter made a little money Modeling:
Because she had to wear clean, NEW clothes at all auditions, we were able to claim some of here clothing, the milage back and forth to "sets" and auditions, hotel stays, part of my cell phone bill, part of my internt service, part of my computer, and because I am her manager we were also able to claim a small room in the house as a small office, which including a portion of the lights, water, ins, etc.
So, basically, she had NO final income.
Since you are a BUSINESS MAN and the IRS will look at you that way, your parent / yourself, will be able to some of the same deductions that I mentioned.
Your area that your computer is in is your office. I have found that typically when working out of your home, an 8*10 space is very rarely questioned by the IRS. So, depending on the size of your home, you would take the entire amount of the Sq footage of HEATED space and divide the total monthly mortage by the sq foot, then multipy that amount by the (8*10) space. That would give you your "rent" that you have on your "office". You do the same for your electricity, water, exterminating, possibly cell phone ...etc. And to get that much money from your site, did you pay for Google Adsense fees? Paypal fees? etc..
You will seriously need to talk to a GOOD CPA in your area. Ask the Chamber of Commerce, or the Small Business Adminstration in yoru town - Both of these can be found in your phone book for your town.
Also, do not only rely on CPA to no all the answers, you are a prime example of someone who looks out for themselves, google the IRS, they have tons of FREE resources on the internet - look up Kiddie tax, tax on small business, etc.
Look all over this following website -
http://www.irs.gov/individuals/article/0,,id=118506,00.html
One piece of advice that I can give you that you must remember for the rest of your life. Fell free to ask everyone for help, but in the end, "YOU are totally reponsible to know where and how your money is being used". (HEE HEE ask Willy Nelson - You are young, you may want to google him)
And by the way - FABULOUS WORK!
Now get out there and write a book, I want to know all about what you did and I am willing to pay for it. Since you know alot about websites, write an e-book and market it on the web. Hire a great editor, and you will be well on your way for great riches!
