Do people usually pay taxes on small earnings?
I've been thinking about having a go at investing online with an app like Robinhood or eToro, and also buying some cryptocurrencies. But I was wondering about paying taxes on any earnings I might make on these. I'm not sure if this is an obvious question, but do people usually pay taxes on any small amount of earnings they might make through things like this? If you made say a couple hundred to a couple thousand per year doing this, would you bother paying taxes on them? If you didn't pay taxes on them and the government found out about them, would you get in a lot of trouble or would they just tell you to pay taxes on them?
I'm not trying to dodge taxes or anything, I'd gladly pay them if it was easy and straightforward. I'm just worried it'd be a major headache and the earnings I make wouldn't even be worth the stress of understanding it all, and the fear of getting in trouble for tax fraud just because I don't know how to do it properly. I know nothing about taxes and I'm worried it'd be way too complicated for me. So I'm worried I'd just be inviting trouble onto me by voluntarily telling the tax office that I'm making some extra earnings through investments.
But on the other hand I'm worried I'd get in real trouble for not paying them, even though I'd just be having a go at this whole investing thing really (mainly for a bit of fun), and I'd only be making a small bonus each year. What should I do?
Yes! Thats a major crime and your risking prison just for a few hundred bucks and some paperwork | 1 | |
You should. They probably won't catch you but if they do you could be in trouble | 1 | |
They won't catch you, but you should pay them anyway just because it's the right thing to do | 0 | |
No! They only care about millionaires dodging large taxs. Its imposible for them to catch you anyway | 1 |