I'm Currently Working On My Income Taxes..........

This will be the first year that I am declaring my adsense income on my income tax return!

Just in case your interested, you are required to report your adsense income when it is over a certain amount - I think its $400.

I have a local tax on earned income in my local community and it looks as though I won't have to pay any tax on this adsense income.

As far as my state taxes go, since my adsense income is thought of as self-employed income that is what I will be filing it as. And since it's considered self-employment income I will have to fill out my state's Schedule C form - which I don't have and have to get! Schedule C is the form to report income (and losses) from operating a business.

My federal tax return looks to be completed. About the only deduction that I will be taking this time is the expenses for my PO Box. I filled out the federal Schedule C form to claim my business income and deductions. I also had to fill out a Self-employed taxes form since its not automatically taken out of my adsense income. So it looks like I'll be getting some money back because I qualify for the earned income credit. Without this credit (or if I didn't qualify for it) I would be owing the government a payment instead of getting a refund from them!

I'm making copies of everything just to keep for my records.

So right now I'm waiting to get the proper state schedule C form - and then I should be able to have completed everything else as far as my tax returns are concerned for the year 2007!

It was getting kind of nerve-wracking and frustrating at first because of all the different forms. But I'd rather be self-employed than working for someone else.

Plus it serves as a good reminder of keeping records and receipts for the things that I will be able to claim as a business expense.

To be quite honest with you I didn't think that I would be making enough in adsense income to have to report it but I realized that I was going to have to report it when I started making more than the $100 minimum a month. But any additional income is a benefit - especially when you will be getting BACK money from the government!