Adsense Revenue as Hobby Income

Discussion in 'Payments' started by iamfaiza, Jan 31, 2007.

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  1. #1
    Hi,

    I was just online to file for tax and since I did use Adsense in year 2006 so I MUST give tax on it. Now, in the e-file application it has an option or "Other Income". So, I selected "Other Income" and it has bunch of other options which included "Hobby Income" so I selected "Hobby Income".

    Does anyone has idea that if I should put adsense income as hobby income or something else?

    Thanks,
    Faiza!
     
    iamfaiza, Jan 31, 2007 IP
  2. jmacleod

    jmacleod Peon

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    #2
    It would probably depend on how much you made...if it's under $1,000 then you could probably call it hobby income. Are you going to be writing off your expenses? Internet provider, domain registrations, advertising etc...?

    I haven't claimed Google income myself yet (this is my first year) so I can't answer for sure...but there should be someone here with the answers...

    jmacleod
     
    jmacleod, Feb 1, 2007 IP
  3. tobycoke

    tobycoke Well-Known Member

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    #3
    From the IRS perspective a hobby something you pursue for enjoyment and not the expectation of making profits. Profits are incidental. If you put Adsense on your site you are only doing it because you are hoping for revenue. Google also deducts tax and issues you a 1099. I don't see how this could be considered a hobby.

    On the other hand I don't see how listing it as "hobby income" will benefit you or reduce your taxes. I think there are better tax advantages to making it business income as you can offset more expenses against it. Try it both ways and let us know. :)
     
    tobycoke, Feb 1, 2007 IP
  4. Tearabite

    Tearabite Prominent Member

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    #4
    Google didnt deduct any taxes from ME.. and IF they deduct taxes i think they would send a W2, not a 1099 ..
     
    Tearabite, Feb 10, 2007 IP
  5. iamfaiza

    iamfaiza Peon

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    #5
    Hi,

    Google did not send me a 1099 either. But I will pay taxes on the money earned by using adsense since I earned more then $600 in 2006.

    Thanks,
    FZ
     
    iamfaiza, Feb 11, 2007 IP
  6. writerightmom

    writerightmom Peon

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    #6
    Yeah, I think that's a good idea. I made over $2000 online last year, and even though taxes weren't taken out, I included the income in my income tax return. Better safe than sorry. And no, I wouldn't choose the 'hobby' option, either.
     
    writerightmom, Feb 11, 2007 IP
  7. sreechar

    sreechar Peon

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    #7
    it is under the regular income ...also depends on hw much u r earning.
     
    sreechar, Feb 19, 2007 IP
  8. filipina

    filipina Peon

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    #8
    I made 7K and declared it under hobby income. Hobby income can come on a 1099. I have a job and Adsense really is a hobby to me... I am also too lazy to document my tiny expenses... If the IRS want to come after me so be it.. :D
     
    filipina, Feb 23, 2007 IP