First time I ever received this. I got a letter from Google that reads 1099-MISC and it has my nonemployee compensation with a dollar amount in that field. I am not that experienced when it comes to tax so does this display how much money I have spent using Google Adwords and I could get money back since it is considered a business expense?
That's how much you made, via AdSense. aka...that's what you report on your taxes in earnings. Google reported that to the IRS.
Thanks. Wow I didn't know Adsense paid me that much. So is there a chance that I owe money or will get money back? Sorry I used to work a regular job so all I did was hand in my tax forms and let H&R Block do their work. Now I will have to learn more about this.
You need to report the 1099 income on Schedule C. Take any business expenses you have (such as advertising, webhosting expenses, etc.) you incurred against the income. You will have to pay self-employment taxes in addition to the income taxes for the net profit. No one can say whether you will get a refund or owe. It all depends on your number of dependents, how you file (single, married, etc) and your other deductions. You may want to continue to use H&R Block and have the tax preparer explain the Schedule C and self employment income to you.
Yes, expenses incurred for operating a website for your business is a business expenses, including domain registration fees. Maybe as an accountant I should open up a bookkeeping & tax tips website for online businesses and start charging fees!
That would be a good idea I spend thousands of dollars on servers, domains, and advertising so if I can get some of that back I will purchase more beefy servers and premium link directory submissions
Is there a mimimum amount you must earn through AdSense for you to have reportable income? For 2006, I earned my first $100.00, and did not receive the 1099. I thought there was a threshold, like $250 or something, before Google reports to IRS.
Its 600 bucks. As long as you did not earn more than that in a year then you don't have to claim it of course you can't claim expenses either unless you claim the revenue. If you are not sure about this sort of thing it would be best to visit your accountant or the IRS website and educate yourself a little bit. You can get in some serious tax trouble here if you are not keeping up with expenses and revenue properly. If you happen to start making some real moeny with Adsense then this will be a problem
I keep trying to download my history from PayPal but it errors about the system being offline every time.
If you don't want that money, PM me and I'll send you my PayPal E-mail address!!! Next it's...unfortunately...I got money from them!!