very soon :bawling: time to explain numbers to the IRS (USA) and i was wondering how much do you have to pay back in taxes from adsence revenues. let say you made a $1000 for 2005 how much % will Uncle Sam take?

thanks :lovewht:

Depends on your tax bracket and filing status. But AdSense income, even if you have no other business activity, would very likely be considered business income (you might want to try to pass it off as a hobby, but the IRS isn't very flexible about that dodge), so if you're talking about filing on an individual tax return this would require a Schedule C and payment of self employment tax.

Best bet if you don't have a handle on this is to run your whole situation by an accountant.

Depends on your tax bracket and filing status. But AdSense income, even if you have no other business activity, would very likely be considered business income (you might want to try to pass it off as a hobby, but the IRS isn't very flexible about that dodge), so if you're talking about filing on an individual tax return this would require a Schedule C and payment of self employment tax.

Best bet if you don't have a handle on this is to run your whole situation by an accountant.
the key to this, is to make sure you dedect everything that was assoc. with running the web site. Hosting, Domain names, etc etc etc


And to try hard as hell to break even..... or even better come out in the hole on paper..:gthumb:

wow, is it that hard to claim adsence?

thanks the_ancient for the tip, i did not think about deducting everything related to it :gthumb:

any more tips? there should be 100's of you that went thru this last year, can you come up to the front? i think this is a good subject to talk about.

I am curious as to how much information and proof is required?
- Do we need to prove we own the website domain?
- Do we have to list all the sites I own that use Adsense (or even other affiliate programs)?

Deductables?
- Hosting costs?
- How about cost of books to learn PHP, ASP.NET, HTML??

Luckily (or rather unluckily), I haven't yet made enough from Google Adsense to even get a check from Google.

Here are some links from the IRS F.A.Q. that might be helpful:
12.7 Small Business/Self-Employed/Other Business : Income & Expenses (http://www.irs.gov/faqs/faq12-7.html)
12.8 Small Business/Self-Employed/Other Business : Schedule C & Schedule SE (http://www.irs.gov/faqs/faq12-8.html)

there is a code of silence in this comunity, "you don't talk about revenue from adsence"..at least this is the impresion i get from the lack of responces when talking about how much.

I am curious as to how much information and proof is required?
- Do we need to prove we own the website domain?
- Do we have to list all the sites I own that use Adsense (or even other affiliate programs)??

No.

All that the IRS cares about is the tax form that Adsense mails out to you [1099-MISC], which has the total of all the money it paid out to you for the year. You don't have to give your name, rank, and serial number. ;)


Deductables?
- Hosting costs?
- How about cost of books to learn PHP, ASP.NET, HTML??

To play it safe, just deduct any costs incurred in hosting/ maintaining your site-- domain name, hosting costs, anybody you hired to help you out with it [coding, design, etc.].

However, I wouldn't suggest trying to fill out your own taxes. I don't know how it is where you live, but here in Brooklyn [NYC], you can go down to the local IRS branch and get someone there to do/ submit your taxes for free. Doing it yourself can be a bit harrowing.

there is a code of silence in this comunity, "you don't talk about revenue from adsence"..at least this is the impresion i get from the lack of responces when talking about how much.
Sorry! I didn't know that!
:S

No.

All that the IRS cares about is the tax form that Adsense mails out to you [1099-MISC], which has the total of all the money it paid out to you for the year. You don't have to give your name, rank, and serial number. ;)
Thanks for the info! Didn't know how it worked when one gets paid by Google. I think this will be the year I actually earn enough to worry about!
:D

To play it safe, just deduct any costs incurred in hosting/ maintaining your site-- domain name, hosting costs, anybody you hired to help you out with it [coding, design, etc.].

However, I wouldn't suggest trying to fill out your own taxes. I don't know how it is where you live, but here in Brooklyn [NYC], you can go down to the local IRS branch and get someone there to do/ submit your taxes for free. Doing it yourself can be a bit harrowing.
Thanks for the advice! Much appreciated!!
:gthumb:

This is informative, because I wonder how many people who are with GA realize the taxes they have to pay.

This is informative, because I wonder how many people who are with GA realize the taxes they have to pay.

I think many people *do* realize it, because Google mails everyone a 1099 at the end of the year for any amount over $600. That's the form everyone needs to report their GA income to the IRS with. If they haven't figured that out from this scary-looking tax form in their mailbox, then there's no hope for these people. :roll2:

UGH... that reminds me... Gotta set up an appointment to fill my taxes out before the deadline. Like last year I'll probably stall until the last minute... :crap:

I think many people *do* realize it, because Google mails everyone a 1099 at the end of the year for any amount over $600. That's the form everyone needs to report their GA income to the IRS with.


i am not in that league yet, but im working on it though :peace:

I just had an accountant do my taxes and pretty much everything was taken care of. All you do is bring the info that Google sends you to your tax guy and then mention any expenses. Like Ancient said, tell them about your web hosting, domains, and any other website related stuff like a new computer... those can all be tax write offs.

But if you live in the US, you have to pay something like 20% for regular taxes (because Adsense earnings are untaxed), plus Social Security is another 15%... so it's best to set aside money to pay for everything next year. :)