How much is kept in your PayPal

Discussion in 'Server & Community Management' started by ChrisLane, Apr 7, 2013.

  1. What is the maximum amount of your donations that you keep in your PayPal account?
    Do you move some of your donations into a bank account for safe keeping at all?
    I've heard some pretty terrible stories of peoples PayPal account funds being seized out of nowhere and am getting to the stage where if that does happen it could be a good idea to shift half somewhere else.
     
  2. well i havent heard of these seizures you have heard of but i wouldnt keep much funds in the account except for maybee a bit to cover server payments the rest i would keep alloted in your bank account for safekeeping. For me even ifs its in my account i dont spend it as im non profit and it all goes to the server and its players.
     
  3. Every time I reach 2-3k i move it out into my bank account.
     
  4. How do you guys deal with taxes? Do you register it as income?
     
  5. joehot200

    Supporter

    I probably doubt it.
     
  6. No I do not.
     
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  7. I personally don't take any of the money for myself, would that this mean I need to report it?
     
  8. Advising people about what do to with money...? Dangerous!

    [​IMG]
     
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  9. I transfer to my bank every time i reach around 5k, which is fairly often. I always like to keep around 1k in it, which is about how much my server costs for 1 month.
     
  10. Then you probably aren't getting 1000+ a month of donations. There are servers that will earn so much from 'donations' (a better word would be micro transactions) that it starts looking like a part time or even a full time job salary. From my research, you are by law obligated to report this as income depending on where you live. You could just not do it, but ducking taxes is not something to take lightly :p But that's just from what I've found, and I'm really interested in seeing how others deal with it.
     
  11. I'd like to point out that even though some of us earn 10-20k+ a month, we do in fact put large amounts of time into our server. Whether it's developing custom plugins, keeping the server online & stable, answering annoying questions and dealing with DDoSers, spammers, and children. None of us just puts out a server in 5 mins and sits back and waits for the cash to roll in. I have had my server for almost a year now, and i'm still not done developing and creating it, and as I can see with all the other people here they are as the same. We provide a service in which we are responsible of not only having it playable, but keeping it unique, fun, and stable. I think the term of "donating" should be changed to something more like micro transactions as you state. And that we are more like the people of something like Runescape, Farmville, or whatever as that we sell items and perks to people as the persons want to improve their quality and experience of the game, because 9/10 times a person "donating" just wants to purchase awesome things to have a awesome time with it, as that was my reason of donating to many servers. =D
     
  12. Certainly, I hope you didn't take my message as spiteful. Infact I'm on the same team here :p. There is nothing wrong with 'making money' from running a server. Players volunteer to give you money (or want the rewards, but still a choice) and it is no different than any other game with a shop. The modest income from my server right now made it possible for me to quit my part-time job and develop more things on the server. Which means a better server for the players.
     
  13. Oh, no I didn't. I was just adding on to your message. :p
    I agree, there is nothing wrong with making money from running a server, and I personally make 15k+ a month, though I was saying that I think some people might not think the same due to everything being labeled as a 'donation' so they expect the money to go straight into the server, which of course it does but even after paying all expenses there is still money left over and that there is nothing wrong with pocketing that money as we spend a large amount of time making and improving our servers.
     
  14. PhanaticD

    Patron

    for those of you living in the US how do you report it? I got a letter from paypal saying they reported my earnings to the IRS and I dont really know what to do, first time dealing with this stuff.
     
  15. Have you ever done taxes before? It means PayPal reported the money you made to the IRS, which means if you don't file your taxes for the money you made during the 2012 year by April 15, they will come after you.
     
  16. PhanaticD

    Patron

    no i have never done taxes before
     
  17. Best be consulting with your parents then.
    If Paypal reported it to the IRS, and you didn't, you might be too late...

    If that's the case it's basically fraud and could mean a pretty big fine.
    Not exactly sure how big. Where I live it's pretty strict and I report all earnings but spend almost all of it on the server, so I don't pay that much in taxes.
     
  18. Bestle

    Patron

    I think the penalties in the US for failure to pay/file are:

    Failure to File Penalty

    The failure-to-file penalty is calculated based on the time from the deadline of your tax return (including extensions) to the date you actually filed your tax return. The penalty is 5% for each month the tax return is late, up to a total maximum penalty of 25%. The percentage is of the tax due as shown on the tax return. If your tax return is more than five months late, simply multiply your balance due by 25% to calculate your failure to file penalty.

    Failure to Pay Penalty

    The failure-to-pay penalty is calculated based on the amount of tax you owe. The penalty is 0.5% for each month the tax is not paid in full. There is no maximum limit to the failure-to-pay penalty. The penalty is calculated from the original payment deadline (the original April 15th filing deadline) until the balance due is paid in full.