Taxes

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Taxes

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Hello everyone! I have a question for American Instructors: 

when you receive the payouts from Udemy onto your bank accounts, do you pay taxes from that amount? And if you do, what percentage?

I would really appreciate your answers. Thank you.

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Yes, I pay taxes, both state and federal. I would recommend you consult with a CPA to determine how much you should pay in estimated taxes throughout the year based on your income and overall tax bracket.

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I pay estimated taxes every quarter. Then I work with my tax professional to figure out where I stand for the year 🙂

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Yes, I pay taxes, both state and federal. I would recommend you consult with a CPA to determine how much you should pay in estimated taxes throughout the year based on your income and overall tax bracket.

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I have a similar question.  The pay/with held tax etc. is provided by Udemy on a 1099MISC form.  Where, on the US federal tax form, is the income entered?  I have had one tax expert tell me to put it personal business and another expert say is goes in some "other income" area.  I really don't have a business.  I simply collaborated on one class and received some small amount of compensation.  It isn't worth having a business.

 

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@Marky, any competent tax preparer or CPA would be able to assist you. It sounds like you'd report it as a sole proprietor on your 1040, which is typically done on a Schedule C.
Disclaimer: I'm not an accountant.

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AHardin,

Thanks for the reply.  I understand your disclaimer.  No worries.  My frustration is that I have received conflicting "assistance" from two experts each having the appropriate credentials.  My hope was to get some consensus among instructors who are US citizens and deal with this every year.  Your observation is consistent with one of the tax experts I consulted.

I appreciate your thoughts and thanks again.

 

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@Marky, you're welcome. I used to use TurboTax Home & Business for self-employed small businesses (sole proprietor) until converting to an LLC S-Corp this year, and it always used a Schedule C for my sole prop 1099's. The Schedule C feeds into the "Other Income" area on your 1040.

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@AHardin ,

Thanks for the additional insight.  I am considering an LLC but I am not sure it would be worth the trouble.  I don't plan to create very many classes and the topic is rather specialized so the pool of interested participants is small.  I'll have to do some research.

Thanks again and keep in touch.

By the way, can instructors message each other through Udemy in a more private setting?  The thought just crossed my mind while I was typing.

 

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Thank you for replying!

 

 

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