Do I Have to Pay Taxes on My Google Adsense Earnings?

Do I Have to Pay Taxes on My Google Adsense Earnings?

Google Adsense is required to collect tax information from those who participate in the program. If you’re a business, you’ll need to put your EIN number on your application. If you’re an individual, all you’ll need is your social security number. If you don’t have that information when you initially sign up, you can still apply for the Google Adsense program. But be advised that Google Adsense will withhold payments to you until they receive your tax information.

While Google does not withhold taxes or provide any tax advice, they will send you a 1099 once your earnings reach a certain amount. Of course, if you are a Non-US business and have no activity in the United States, you will not need to provide this information. For more tax information regarding the Google Adsense program, visit the Google Adsense Support site. For other tax-related questions or concerns, you can log onto www.irs.gov.

If you use a separate room of your house just to make money on the internet, and it is used for that purpose only, or is considered a home office, some tax deductions you can take are the cost of your internet, your phone, your computer, fax machine and copier. You can take the section 179 deduction or depreciate the equipment. Software you buy for your business and the cost of ads you place across the Internet are also tax deductible. Just make sure you have accurate records.

Tim
----
U.S. Master Tax Guide!!