Can someone enlighten me on the ins and outs of adsense and taxes? Hypothetical : Say you make $500 in a year on adsense, how much do you pay in taxes? Does Google deduct it? (laughable right? =] ) Any ideas on how this stuff works would be greatly helpful. Thanks!
If you don't think, consult a tax accountant. If you do think look at your last year's tax form or tax software package and see how the extra income would affect your tax liability. It's just additional income.
I just wondered if there was some trigger, like, I heard in NC, if you earn over $400 a year in extra income, you have to pay some extra entrepreneurial (sp?) tax that is like 15% on top of regular state... could be wrong. I can ask an accountant, and I probably will, I just figured someone here has dealt with it, and wondered if they had any hints or ideas on how it is taxed... etc. Not a big deal, thanks.
You have to list it as business income. You'll pay for SSI and Medicare as well as federal income taxes which vary based upon your income level. Google will send you a 1099 at the end of the year letting you know your income. You need to consult a tax accountant.
If you are self employed it's no different from being paid by any other client. Get an accountant or buy Turbo Tax.