Income Tax ?

[Level]

Originally Posted by Sunab Naverith

I say simply just shut up, and keep withdrawing. If (stress... *IF*) they contact you regarding your withdrawals, then handle it.

There is an old proverb, "It's always easier to ask forgiveness than permission".

At least here in the US, the entire concept of this federal income tax is 100% illegal, and BS. Local (county & state) taxes are fine, but the government as a whole has no right to require you to pay a federal fine on you earning money.
Just wish more people didn't have their head hidden somewhere that the sun don't shine, and would actually do some reading on it... instead of acting like good little sheeple .

ok, so I resign of paying taxes from my withdrawals eventually If they will find out my withdrawals...I will get prisoned :P I dont care as long as I don't have a GF and I know I will never have

thanks for all posts again ppl

[Horadrim]

PM send back

hope it answers all your questions and a bit more lol

Horadrim

[Kydde]

My opinion is that Widthrawl and Deposit is a form of product for MA. There for you will pay tax for the product that MA sells.. Which simply is money.

[Uvas]

I had this same issue when I started to profit in Second Life. I live in US though, not Poland.

Activity inworld can be considered a hobby, so you are allowed to profit up to 400 dollars a year without tax liability from your hobby in the USA. Above that, it is considered ordinary income. The taxable event is when you withdraw money from the game.

A previous poster said the gold card money is untracable which is ridiculous. I'm sure Mindark would be more than willing to comply with any country's tax authority and provide them with a list of your withdrawals.

[Noggin]

I know this might not be of any use to Level, but it might benefit some others, so I will continue.

My only real knowledge is about the UK tax system (and most of that only really gleaned from my wonderful accountant), there are quite a few considerations which can offset your income, especially from Internet earnings.

Firstly, over here we are given an allowance on income of £5435 before we have to pay any tax whatsoever. So, if you're a student and have no other income, it's quite a reasonable amount to earn from a game.

Secondly, even if you have a full time job, you can declare your initial deposit as an 'investment', and offset the investment from your profits, leaving you to potentially earn that money back scott-free, and technically you could keep the rest of it in-game, saving your future withdrawals for another tax year.

There are various other tricks to allow you to offset some of your outgoings from your overall profit. While I know a bit about these other things, I don't know all the ins and outs, so I won't continue.

Anyway, hope that might be of some use to somebody