How do website owners report to the IRS?

Yes, it categorizes me as self employed.

Yes, it makes you a business owner.

Banks don't have to report all deposits/transactions greater than $5,000 to the IRS. They don't report checks (unless its an IRA or HSA). They only report cash. And $5000 isn't the amount. Even if my account reaches that amount, it doesn't matter. They don't report the amount in the account (unless it's an IRA). They only report it if it was deposited in cash, in a single transaction, or in a very short period of time.

If you pay your friends and they are not employed by you, they are considered contractors. If they help you for free, they are not considered contractors. This is considered a business expense right. It's simple if they are each made under $600. If any of them gets paid over $600, then you have to tell the IRS your friend's name, address, and social security number, and your friend will have to pay self-employment tax on the money and your friend will have to pay income tax on the money.

ONLY ordinary and necessary business expense can qualify for this purpose and time in your life.

Whether you do get the 1099 form from THEM or you do NOT get the 1099 form from them you would still be required to Use your own good daily written receipt books and records in order to correctly complete your 1040 income tax return during the 2014 tax filing season.

Self employed independent contractor using your daily written receipt book records to report your gross income on the schedule C or CEZ along with the SE to determine your NET PROFIT or LOSS from your business income during the tax year for this purpose.

SE your social security medicare tax amounts that you would OWE on your NET profit amount that would end up the page 1 line 12 from the schedule C and any SE tax owed page 2 line 56 and page 1 line 27 Deductible part of self employment tax attach schedule SE line 27 $$$ amount.

Starting, Operating, or Closing a Business

Starting a Business

Starting a business could be exciting. If you're considering starting a business, start here. This section provides information on everything from a checklist for a new business, to selecting a business structure, and more.

www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Starting-a-Business

www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Starting,-Operating,-or-Closing-a-Business

Hope that you find the above enclosed information useful. 04/07/2014

It's really a non-issue since no business is going to send you cash or a check to advertise on your website.

yes, this is self employment, report your income on Sch C(expenses as well) and probably also the sch SE