Diablo® III

How do i claim taxes I am 14 years old

Posts: 194
I can't work legally

wouldn't making money off the game make me a independent contractor of blizzard since i am making money off their game?

also I am not really 14.


I dont know what your looking for, can you be more specific?

your not 14, but if u were 14 you would think its wrong to make 3$ for a virtual item?
First off you have to be 17 years old to buy the game.

not sure where this is going so im done.
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Posts: 18
whether you're old enough to work is besides the point. if you're a minor making money, you just report through your parents and your parents pay your taxes. minors make money all the time (justin beiber, babies in gerber commercials). and fact that you need to be 17 to purchase the game is irrelevant as well if your parent's purchase the game for you.

any income, no matter what the source, is taxable income. even money made illegally is taxable (that's how capone went to jail) so tax law won't make an exception for RMAH money. making money through RMAH is like making money selling things on eBay. at present I don't think the IRS has developed a comprehensive system for dealing with money derived through online auctions. it costs the IRS too much to track down every little sale to make the added tax revenue worth it. i think the system as it stands now is the IRS only goes after individuals making substantial sums of money, either through large one-time transactions or people who regularly sell on eBay, like antique collectors. when deciding whether to go after these individuals, the IRS considers multiple factors such as just how much money someone is making, what proportion of an individual's overall income does that represent, how much time does someone spend making money on eBay, does he make sales in a business-like fashion, etc.

a similar framework would be applicable to the RMAH. if there are individuals who are grinding for gear and selling it on a regular basis, making substantial money and using that money to pay their bills for example, then the IRS might demand that income be reported.

the bottom line though i think is the IRS hasn't really figured out what it's going to do about online auctions yet. it's just really complicated. there are minors and non-minors. how do you trace whether people selling are americans or not. until the IRS comes up with a comprehensive policy, i don't think RMAH income will get anyone in trouble. i think the most sensible policy that may be developed at some point is Congress might impose a percentage tax on all online auction transactions, such as 5% per transaction like a sales tax. we will have to wait and see.
Edited by titan on 10/6/2011 1:37 PM PDT
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90 Blood Elf Priest
6470
Posts: 292
Here's a hint: Daniel Radcliff(sp) had to pay taxes on his salery for the first 4 Harry Potter movies. 14 year olds CAN and DO earn income.

Of course your parents are still claiming you as a dependant, blah blah blah... it's not all unusual is my point. You earn money, you pay taxes... well, you file anyway, I don't your going to have much tax liability from the RMAH.
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Posts: 18
disregard my OP. this link will be helpful for anyone concerned about tax issues and the RMAH.

http://www.irs.gov/businesses/small/industries/article/0,,id=163622,00.html
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90 Blood Elf Priest
6470
Posts: 292
10/06/2011 02:23 PMPosted by Danewb
lemonade stands dont pay taxes, so there ya go!


Lemonade stands have also been shut down for not having a business lincense also. Just saying.
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Posts: 143
The same way as everyone else . . Funny story, I live in Vegas, A friend of mine got thrown in jail last week for snatching a ladies purse off her shoulder, He said there we 7 people in jail for selling $1 Bottles of Water on the street without a business license, the government will make sure they get a piece of your income no matter how small.

anyway, I think its called a 1040 that you have to file at the end of the year for any income you earned that wasnt taxed by the government.
Edited by Lortab on 10/6/2011 3:19 PM PDT
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Posts: 3,197
better yet. why are you playing an "M" rated game as a 14 year old.

as someone who is 100% completely OPPOSED to RMAH, i still feel its necessary to say: they don't need to cater to the audience who isn't legally allowed to play their games.
Edited by FurryFury on 10/6/2011 3:15 PM PDT
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Posts: 143
better yet. why are you playing an "M" rated game as a 14 year old.

as someone who is 100% completely OPPOSED to RMAH, i still feel its necessary to say: they don't need to cater to the audience who isn't legally allowed to play their games.


It is not unlawful for someone under age to play a M rated game, the parent is the person that decides if their kid is allowed to play the game or not.

Blizz should just not allow people under 18 to use the RMAH, I mean all they would have to do is add a button that says "By Clicking Me You Swear That You Are 18 Years Of Age" and they wouldnt be liable for anything.
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Posts: 143
Also, people under 18 are more than capable of having bank accounts, I had 1 when I was 14 and had a debit card with a Visa logo on it which meant I could use it on the internet as much as I wanted.
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Posts: 247
1) You are a minor. You file taxes through your parents.
2) You don't claim taxes, you pay them. How can you expect to make money if you can barely type?
3) Get a job or study or something. Don't ruin your life on Diablo 3. I'm not saying the game will not be awesome, but just study. If you know the material in school, go teach yourself trigonometry or something. Learn SAT vocabulary. Get ahead in life.
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85 Human Warlock
2175
Posts: 250
Lortab

Also, people under 18 are more than capable of having bank accounts, I had 1 when I was 14 and had a debit card with a Visa logo on it which meant I could use it on the internet as much as I wanted.


My bank account was created during the year of my birth. My parents created it in my name and managed it till i knew what money was. I still use it to this day (though it now has several other accounts linked with it).
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90 Blood Elf Paladin
0
Posts: 7
I'm 16 and I have a bank account, a debit card, and a PayPal account.
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Posts: 23
pretty sure you're not legally allowed to have a bank account, let alone a paypal account at your age. so, if you were to be doing such things, it would probably be under a parents name/paypal account information.

edit: rather, you can have a bank account, but your parents are co-owners probably until you are 16 or 18.
Edited by Nokarot on 10/6/2011 7:26 PM PDT
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Posts: 11
It's not a crime to not file your income taxes. It is a crime to lie or cheat on your income taxes. Failure to file can only result in the IRS garnishing your wages, it cannot result in fines or jail time. Your 14, I wouldn't worry about it.
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Posts: 143
You do not have to be 18 to open your own bank account, you can be 12, as long as you can walk in yourself with credentials why would a business tell you, No, Your money is not welcome here. Maybe some Banks have policies that dont allow people under 18 to open an account, but it is not Illegal.
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Posts: 1,755
This isn't employment. You simply have ownership over your virtual items. They are a form of property, which Blizzard has given you a means to transfer or sell. No different than selling your baseball cards, i mean Pokemon cards on ebay.


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Someone said this just before I can get to it, but its the same as Ebay selling or a yard sale.
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Posts: 1,418
I can't work legally

wouldn't making money off the game make me a independent contractor of blizzard since i am making money off their game?

also I am not really 14.


No you would not be an independant contractor for blizzard. You will not be working for blizzard, you will be buying and selling items directly to other players using a service provided by blizzard.

No different then buying/selling on ebay or out of an auto trader.

This also means you do not have to pay tax ont he money you earn through the RMAH.
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Posts: 5,266
I can't work legally

wouldn't making money off the game make me a independent contractor of blizzard since i am making money off their game?

also I am not really 14.


No you would not be an independant contractor for blizzard. You will not be working for blizzard, you will be buying and selling items directly to other players using a service provided by blizzard.

No different then buying/selling on ebay or out of an auto trader.

This also means you do not have to pay tax ont he money you earn through the RMAH.


Negative. Ebay as an example

http://reviews.ebay.com/Taxes-and-Ebay-eBay-Sales-May-Be-Subject-To-Taxes_W0QQugidZ10000000000720733
"The IRS rules are clear: you must pay taxes on all personal and business income and that includes money you make selling on Ebay."

But then it would cost IRC much more than the amount you could make from RMAH if they choose to investigate the case.

in another word

Don't worry about it
Edited by Tagle on 10/7/2011 2:30 AM PDT
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