Hey Guys, Hope someone can help me out here. I'm 18 and I made approx $8200 on cpalead.com and another approx $3300 with Google Adsense this past year. According to Google (If I'm reading this right), I need to fill out this W9 form http://www.irs.gov/pub/irs-pdf/fw9.pdf and I believe I have to send it back to Google. Is this correct? Then what do I send to the government (state and federal)? I am in Wisconsin, USA. Also, I talked with someone at CPALead who said they don't really help with tax stuff... so what do I fill out to send to the government for my CPALead earnings? Keep in mind that I do not have a job currently in addition to earning from these two sites. Any help would be greatly appreciated!! Thanks! DK
You don't need to fill out anything with either company unless they require you to do it. What you need to do is file an income tax return and pay taxes on the amounts you earned as they will both be reporting your payments to the IRS via a 1099. In addition to income tax (federal and state) you will need to pay SS taxes and medicare - and the last two are going to be 15.3% of your net income. You either need to research filing on 1099 income, or see a tax preparer. Not filing is not an option, regardless of your age.
Thanks very much for your reply! Does this appear to be the right form to use for both? http://www.irs.gov/pub/irs-pdf/f1099g.pdf
You don't do anything, those companies will mail you the completed 1099. Once you have those, you can then file your taxes using Form 1040, including Schedule C.
If online marketing is your only source of income you just have to file a 1040, schedule c or c-ez and thats it? What about a schedule se for self employment tax?
I'm a CPA (and do tax returns a bunch of online businesses)... FYI, you'll also have to file a Schedule SE with the Schedule C... info from the Schedule SE and Schedule C will go onto your 1040... BTW, in many areas of U.S., colleges and universities with accounting programs will run a service called VITA... voluntary income tax assistance... if your income is $10K to $12K ish, you'll probably be able to get them to do your tax return for free. Good luck
Actually I only made about $1400 back in may off a project, i've been out of the game since (plan on getting back in soon haha). I dont have a job this was all the money I made to my name in 2010. I don't think i need tax assistance the forms are pretty explanatory and I can just file online. I'm just waiting for my 1099 to come in and ill be allset. Just one quick question, They will send me a bill for the money i owe in taxes after they get my forms, or do i have to calculate it myself and send the money with it. because i saw a place on the form for calculating your se tax but not federal or state. Also when i write down a number for my expenses (hosting, domains etc.) do i need some sort of proof or will they trust me as long as the number doesn't look absurd.