Last year with AdSense I made about $766.12. 1. Do I owe taxes? 2. How do I go about paying them? (Do I get a form in the mail?) I'm not trying to sound like an idiot, but AdSense has been my one and only job so I am confused about how this tax deal works. My dad said that $766.12 wasn't even enough to be taxable. Anybody know how I can go about paying taxes?
You won't owe income tax, but you do need to file and pay self-employment tax if you had a net profit over $400. Google has already sent out their 1099's - you should have received it at the address they have for you. You will need to contact them if you didn't. There are some online places that can help you will filing (turbo tax is one).
Alright. That's what I thought. Another question. I made a bunch of money from a bunch of different companies. Like 50 dollars from the news room, 800 from pay per post, 50 from social spark... Do I report that also? If so, how do I?
You are legally supposed to report all income. You are supposed to get a 1099 on amounts over $600 - but if you don't get one, you sill need to report income. You can deduct business expenses such as hosting costs, equipment purchases made this year, etc. I think turbotax will help you will this - or you could research allowable business deductions if you are going to do it yourself and not use a tax preparer.
Alright. I'll get this all looked at. I only got one 1099 and that was from AdSense. I'll have to ask my dad if he still has it. Thanks for your help. PS: Anybody else in my shoes?
Loai24 - I'm not looking for a way out. Lol. I want to do what's right, but just don't know how to go about doing it.
How were you paid for your services? If paypal, do a history search from 1/01/08 - 12/31/08. Revenue - Expenses = Income you pay taxes on So make sure to include everything that you can for expenses (advertising, hosting, buying turbo tax to do your taxes , paypal fees, an anti carpel tunnel pad for your work on your computer, etc, etc...)
I have a little website explaining this very question, it's the first one in my signature. You must file a tax return if you had net earnings(gross earnings minus deductions) from self-employment of $400 or more. Hope this helps!
Definitely file, even if you don't pay anything. Not filing is an automatic flag to the IRS, since Google sends them a 1099 as well. If that is your only income for the year, it's unlikely you would actually owe much, if any, taxes on it.
If you're in the US and make more than $500 in one year on any program, you have to pay tax on it. Unlike freelance or any other under-the-table job, you have no choice because Google will be reporting your earnings.
You need to file a return. Because the amount is so low your standard deduction will easily cover the amount you earned so you won't end up owing anything, thus you won't end up paying anything. Typically self employment income is taxed by the Feds, most states, and the real kicker is Payroll Taxes (Social Security/FICA). You are not really a business even though it was your only income. So file a 1040EZ and forget about it. In the future as you grow your income you will reach a point where you will need to choose an business entity and then start paying payroll taxes quarterly should you chose to be self employed. You are a long ways from there.