2013 Taxes

Hi ,


As some of you already know a friend ( Mrfixit )and I have a site on Youtube and it is doing good . Well enough that we was offered a partnership with Google to place ads on our videos in which we get paid . That statement brings me to my question . How do I figure out how to pay my taxes ? Check from Google goes to him ( I get a printout with my check from him showing how much my videos made and I have access to our account on Youtube and Google ) and he sends me my part . He's paying all the taxes as the Google check is in his name , but I'm paying him back for my share of the taxes. My tax person said that it was 21% of total amount paid - .15% and .6% Federal . She said she didn't think there was any Social Security or medicare ,etc. on it ,just 21% . But he asked his tax person and I wasn't there to hear what they said and he wasn't there to hear my tax person. So does anyone honestly know the law on this as well as tax laws and how to figure them ? I intend to pay , but I don't want to get ripped off,and while he dosen't know what my tax person said ,he apparent want to do as his said . Does anyone know the Kentucky law on this ? Thanks for any and all help .

Thanks,
Whizkid

Don't know how your tax person could just say 21%, period, without knowing more- like your friends tax bracket. But here's the fair way to do it.

Have him figure his income tax (state and fed) on his total income, including the total amount both of you got from Google; then figure it again, on his total income LESS what he paid you. The difference between the two tax amounts is what you should pay him.

Hi,

Just got an email from him his tax person said the same 21% apparently as thats what he quoted me . I made ( from my videos ) $1,786.19 my share from Youtube / Google this year .

Whizkid

Mike(WA),


It's easy as there are laws that you go by that covers this as my tax person said like his apparently did . I just wanted to make sure as this is all new to me and I'm not a tax person . His tax bracket is mostly irrevalent to me as mine is to him , because we are only into partnership on our youtube deal . Other than that his other income from his job dosen't affect me and vice versa . I'm not paying taxes on the money that he made from truck driving or interest on his house , savings ,etc. and vice versa . His other income might affect his part someway ,but that HIS person income that's affecting it ,not mine . Why should I pay taxes on money thats not mine( and will never see ) like what he made from trucking , etc..

Thanks,
Whizkid

Hmmmm, I'm guessing the 21% is what its costing him in taxes. But, you are getting income from him, not google so it will appear that its taxable to you as well. The amount is small enough that it would be below gift tax but not tax deductable to the business then.

I think a better, safer, and more nearly legal approcach with me being neither accountant nor tax attorney is for him to file schedule C on the internet business. Half the income is yours, which would come off schedule C as a business deduction. so you would get the full half you've earned with no deductions for taxes. Then its taxable income to you on your return. In his case, his taxable income is his net profit, which has your half taken out. As it stands now you are paying taxes at his rate and potentially again at your rate.