“my partners and i are planning on sharing the cost of the coupon with the company offering it. we want to know if we will be taxed on the full amount or just the portion we keep?”---->I assume that your buisnes is a partnership NOT treated to be taxes as either S Corp or C Corp. Then your partnership is the relationship existing between two or more persons, partners, I mean who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the groupon online business.Your partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.( Flow-through taxation means that the entity does not pay taxes on its income. Instead, the owners of the entity pay tax on their "distributive share" of the entity's taxable income, even if no funds are distributed by the partnership to the owners.) Partners are not employees and should not be issued a Form W-2 UNLIKE a S crop that issues W2 to its shareholder-employees. The partnership must furnish copies of Schedule K-1 (Form 1065) to the partners by the date Form 1065 is required to be filed, including extensions. As a partnership or a partner (individual) in a partnership, you need to know some of the forms that you may be required to file. For example, your partnership needs to file Annual return of income, form 1065, to the IRS and to your state( if your state imposes taxes to its residnets(9 states do not impose income tax in the US) your partnership needs to pay Employment taxes( if it has EEs:file form 941/940 or etc); As a partner (individual) in a partnership then you may be liable for income tax, form 1040, selfemeployment tax ) form 1040 Sch SE and Sch E); Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3% (10.4% for Social Security and 2.9% for Medicare). For self-employment income earned in 2010, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).Estimated tax(you need to file form 1040ES) and your state quarterly estimated taxes.As long as you are filing as a partner, and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.
Please visit the IRS Websites here;
Estimated Taxes Self-Employment Tax (Social Security and Medicare Taxes)
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