I know that it is different for every state of the U.S., but what do we generally have to do if we are over the income limit?

You either a) go to an accountant or b) try filing them yourself. You can efile your taxes.

Have any efile tax sites? online of course?

http://www.irs.gov/efile/article/0,,id=118986,00.html

I was lazy and took mine to Sader & Associates. Now I'm filed and waiting for the tax return!

Originally posted by Galfon
I know that it is different for every state of the U.S., but what do we generally have to do if we are over the income limit?

The limit for small business tax is not even really a limit ($300). Basically, if you did any business you are going to be paying taxes...

http://www.turbotaxonline.com has a full processing center where you can do your own. Very complete when going through the questionaire.

I believe that if you get paid by someone else (for example checks sent to you from Google for AdSense revenues) then you should receive a 1099 form IF your earnings are over $600.

If you earn less then $600 from an outside source - no tax due.

Please check with an accounting pro to verify!

Originally posted by cpureview
I believe that if you get paid by someone else (for example checks sent to you from Google for AdSense revenues) then you should receive a 1099 form IF your earnings are over $600.

If you earn less then $600 from an outside source - no tax due.

Please check with an accounting pro to verify!

That is if you are only dealing with the 1099 forms. If you have a legal entity (corp, llc, llp, etc) you have to pay small business tax. The threshold there is $300. For federal income tax and state income tax the threshold varies.