Making money online sounds too easy for us, teens. We have lots of time, knowledge about technology, creativity. Also, we like to earn from the computer. At first glance, earning money on the Internet is the perfect thing for a teenager.
You go to a website that offer payment for your skills: Create an account. Add your PayPal address. Do some stuff. Wait for the cash to flow in and finally, surprise your family and friends with your awesome earning ! While the part up to “do some stuff” sounds easy and straight-forward, the “wait for cash” part, not so much.
The things is, there are always sth stopping us from getting our hard-earned money, which nearly impossible to get rid of it ourselves. If you’ve ever been stopped at the Payment Setting page or Earning Methods Setting or the like when registering for an account at any website then decided to move to another one, you might have already know what I’m going to talk about
Today I’m gonna discuss with you about the infamous hurdle that has stopped us teenagers from ever getting their paycheck – Taxes.
Let’s get started !
1. What are Tax and Payroll Tax ?
First, let’s look at what “tax” means. Here’s a part from Wikipedia:
A tax (from the Latin taxo; “rate”) is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures. A failure to pay, or evasion of or resistance to taxation, is usually punishable by law.
So, in a nutshell, tax is like a fee that the government impose upon something for you to pay or you’ll get punish. There are multiple form of taxes but we’re only gonna cover “Payroll Tax”, which is the actual name of tax we have to pay when earning salaries, precisely in our case, online payments.
Again, from the Wiki:
Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee’s wages, and taxes paid by the employer based on the employee’s wages.
In layman term, Payroll Tax are the fee that you’ll need to pay when earning income and is calculated differently for each individual, based on the amount they earn. Just keep in mind that the more you make, the more you’ll need to pay.
In general, our earning wouldn’t be so big that tax would make any huge impact but we still need to submit the information to the employer ( the websites that pays you ) so that they can fulfill their roles and not get in any trouble. And that brings us to the troublesome nature of this whole process.
2. How does Tax affect Teenagers when making money online?
To sum it up, everything. You can make thousands of dollars online and feel superb about it but answer me this: “Does that really matter if you can’t receive that amount you’ve just earned ?”
Taxes are used to pay for things like hospitals, schools and other public services but to keep it simple, no tax information, no money for you. Most, if not all, ads network, other affiliate networks or other kind of websites will never send you payments until you file your tax information to them. Although there are still some means for you to earn some money without worrying about tax like MegaTypers, AdFly, etc,… . Also, some affiliate programs don’t need this.
To keep it short, you wanna make good money, you’ll need your tax information ready which brings us to:
“I’m a teen, I don’t have to pay tax and so, I have no tax information, what do I do ?”
Well, actually there is nothing a teen can do about not having tax information BUT there are multiple things you can do to workaround it. As for the main problem, we’ll get to it in a minute.
3. The Workaround
Let’s look through a few ways to tackle our taxing problem – no pun intended, or did I ?
3.1. Choose something Without Taxes
Obviously, if you don’t want to have to deal with tax, choose a make money online method that doesn’t need it
A few example I’ve already covered here on Mmo4teen are:
You can also look for more or we’ll just update you about them anyway. Sign up for our newsletter so you won’t miss anything !
That was the easy way but like any other easy thing, it won’t yield good result. You can’t make a decent amount typing CAPTCHA !
3.2. Ask for Somebody Else’s Taxes Info
Your parents would gladly help you with this, as long as you make it clear about what you’re doing and nothing fishy is going on. Note that all the other information in your account might need to be related to the tax info so you might need to sign up the account under you parent’s name and all. But believe me, it’s worthy. Also, as the same time you will gain more trust from your family. What’s more, you’ll have to do this to get yourself a working PayPal account, well extremely crucial if you want to earn anything ! Not to mention, that it’s much more guaranteed that you’ll get your money.
4. The Solution
Don’t hate me or anything but there is nothing you can do about this until you’re old enough. Just stick to the above until you’re eligible to pay tax. I’ll look up more solutions and add them to this post later.
Tax is a troublesome matter for teens when it comes to make money online but with some careful searching, you can always find something tax-free. However, the most optimal solution would be ask for an adult to help you with this matter. Not only will it help make your work easier but also familiarize yourself with tax itself. I hope this post has helped you understand more about tax and how it affect yours and all other teens’ online income.
Have you found any interesting ways for teens to make money online without tax? How have you persuaded your parents to help you ?
Share with other teens in the comment section !
Like This Post ?
Enter your email to get new posts, offers and special promotions delivered straight to your inbox. And we'll help keep your inbox spam free !