I am earning through online jobs.. Please tell me how to calculate my taxes and investment options.?

Question

The thing is there is such vast difference from month to month in my earnings.. it is not a consistent amount, so how do i know when i am liable to pay tax and how much to pay. Kindly do advise. thank you

Answer 1

Best Answer - Chosen by Voters

If you are considered an employee then I suggest that when you go to file your taxes you have H&R Block or some other place do it for you the first time so you see how it's done and can do it for yourself the following year. If you are considered as an independent contractor then I believe you need to earn over $400 a year to pay taxes. There again you'd need to confirm that with H&R block. If you are an independent contractor (the company you work for doesn't take out your taxes and such) then you would need to have a business license with your state. There again I suggest you get that info right from HI&R Block. Laws change and I would want you to get the most updated information to remain legal.