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Random1__
Level 1

Taxes on donated money throught paypal - streamlabs. What happens when i extent the taxes free limit?

I want to start livestreams and youtube as a hobby but i'm afraid of taxes free limit. To be honest i can't understand how tax free limit works.

So the questions are.

1: In my country the tax free limit is about 5.000to 8.000 euros. As far as i'm below this limit, the only thing i have to is to report my income from donations?

2: What happens if i extent the tax free limit? Then i have to register as an intepedent worker, get healthcare and pay each month 200+ euros? Or i can still just report my income and pay the necessary taxes?

3 Replies
Opus 17
Level 15

Taxes on donated money throught paypal - streamlabs. What happens when i extent the taxes free limit?

Are you a US taxpayer?

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
Random1__
Level 1

Taxes on donated money throught paypal - streamlabs. What happens when i extent the taxes free limit?

No, i'm Greek

Opus 17
Level 15

Taxes on donated money throught paypal - streamlabs. What happens when i extent the taxes free limit?


@Random1__ wrote:

No, i'm Greek


That doesn't quite answer my question. 

 

You are a "US Taxpayer" if you are a US citizen living anywhere in the world, a permanent resident (Green Card holder) living anywhere in the world, or a resident alien (non-citizen living in the US either with or without authorization).  You must also file a non-resident tax return if you have US-sourced income, even if you are not a citizen and live overseas.  

 

However, simply using a US-based payment service like PayPal or Streamlabs does not make your streaming income US-based.  US-based income generally means you actually worked in the US, or you own investments in the US.

 

So I don't know why you are asking your tax question here.

 

The US also does not have a "taxes free" income limit.  It doesn't matter if you were paid $1000 in a lump sum, or $1 by 1000 different people, that's $1000 of taxable income either way.  But that won't be important to you unless you have US income to file a return on, or you are living in the US.  

 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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