Did You Get Your End-Of-The-Year Google Income Statement?

Well I'm happy to say that I got mine earlier on this week.

In case you didn't know, Adsense sends an income form for the previous year and you will need this information in order to include this Adsense income on your tax returns.

If you don't receive it by the end of this month then you should definitely contact Adsense because you will need this information to fill out your tax return.

And just in case you're wondering, it won't do you any good not reporting your adsense income because Adsense has to report it and if you don't report it as well then you might get in trouble with the IRS.

It doesn't matter if your Adsense income is small - if you don't report your income you could get in some serious trouble!

I Made It Past The $100 Minimum Needed To Get An Adsense Payment Next Month!

Actually I reached the $100 mark a few days ago but like I posted before I have been busy filling out and completing my income taxes. I'm almost finished with them - I just have to get one more form and fill it out and I will be finished with my income taxes for the year

By the way - I am getting a refund!

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!

Wondering about how much income tax you'll have to pay on your adsense earnings?

Well its income tax time again and this will be the first year that I have to pay tax on my adsense earnings. I'm posting this for those of you that are curious about your adsense income and paying taxes on it. Also bear in mind too that this is for those in the United States only.

First of all adsense won't be sending you a tax form if you have made under a certain amount - which is around $400 - $600.

According to my federal tax return you have to report your adsense income if it is over $400 because you are liable for self-employment tax! Now the interesting thing that I have found out is that while you are going to be taxed, you are going to be able to cut your self-employment tax in half and only be taxed on half of the self-employment tax that you owe. Adding to that there is something else called the Earned Income Credit and if you qualify for that then you get more of your owed self-employment tax slashed.

So far it looks as though I'm going to be paying about $1 to $5 dollars in taxes as far as my adsense earnings go.

I haven't actually started doing my income taxes yet. I want to be ready with all my comfort tools before I actually get started and tackle this thing!

Other Comments Received

March 3, 2009 11:14 PM - Googlecash said...

Hi, I was not in a good financial position back in 2004, Then I found Google adsense, Its the best program to earn money online, I started slow, I was making $20 a day in my first year, but I worked really hard and Making money online is not easy, You have to put in lots of efforts every day, I did, But now my life has changed completely, I make over $3000 a month, This gives me lots of freedom, I have made many friends online and I did learn lot from them, I wish best of luck to any one who is starting up.

Liza form Google cash

Your Adsense Payment(s) And Income Taxes

I got an audit notice from my local tax administrators concerning my 2006 adsense earnings. I, of course, reported my adsense income but there was no W-2 that was included with my tax return and that was what the audit is all about. Now normally people would think that this would be an occassion to panic (which I did at first) but since I have worked for both H & R Block and the IRS I had some experience with the whole "tax" thing.

So I called up the tax office to find out what the problem was. Basically speaking all income reported has to be backed up by an accompanying form of proof of that income. Since my adsense income was so low - it was only for two months - adsense did not send me a W-2 form. Here is an excerpt from adsense's site:

Will you send me a Form 1099 or 1042?


Publishers are responsible for paying their own taxes resulting from participation in Google AdSense. In order to facilitate this, we send IRS forms 1099 and 1042-S to qualifying publishers as required by US tax law. Forms will be sent before the end of January 2007.

We will send a Form 1099 to you and the IRS if:

• You submitted a Form W-9, are not a corporation, and were paid at least US $600 in 2006 OR
  
  
• You indicated that you are subject to backup withholding and had taxes withheld

We will not send you any forms or report your earnings to the IRS if:

• You have signed the declaration of No US Activities OR
  
  
• You have NO earnings from the AdSense program OR
  
  
• You have submitted a Form W-9 as a corporation and did not have any taxes withheld OR
  
  You have submitted a Form W-9, made less than $600 and did not have any taxes withheld

To find out more information about this just click here to go to the Adsense Help site.

According to my local tax administrator(s), I have to let them know the reason as to why there was no W-2 form included with my tax return. So I have included an excerpt from the Adsense site itself as to why there was no W-2 form included with the tax return and I will let you know how everything goes.

It's Tax Time! - I Have To Report My Adsense Income This Year!

As an adsense consultant I do have to "practice what I preach"!

What that means is that as an adsense consultant I myself earn an income from having adsense ads on my site. In fact I have earned so much income from adsense last year that now I have to report it on my income taxes! I suppose that I could complain and grumble about this but the fact of the matter is I LOVE getting and spending that adsense money!

Just in case you're wondering you have to earn something like $400 - $600 with adsense before you have to report your income.

This will be the first year of reporting my adsense income so I'm not familiar with how much I'm going to have to pay yet.

What I do know is that I can offset the income by claiming the right and relevent deductions. I am able to deduct things like the cost of printer cartridges and supplies. I even got a webcam last year so I may be able to deduct that as well!