Hi, I am an adsense publisher and currently located in United States. I am on H1B visa (Visa for international employee). I have configured the adsense by choosing that I am not a US citizen or a permanent resident. Now, I need to know that how should I file for the taxes on the money earned from google adsense? Should I calculate how much I earned from google in 2006 and put in the tax forums as an additional income, will that be enough. I don't think google will be sending out W2's or 1099. ( I am on W2). Anyways, any advice will be appreciated. Thanks,
You will get 1099 from google some time this month.. just use it along with your W2 when you file your taxes. if you don't get it, just report as other income along with your W2.
Since you are a non-resident I am not really sure. As a general rule adsense income from a site you own would be considered business income, reported on a Schedule C and you would be allowed to deduct normal business expenses. For small amounts you can get away with reporting it as Misc income. Sorry I could not be more help.
Thanks for the replies. Both replies were very helpful. I think I would have to put it as other income as suggested by VRSANE (Yes we are..) Thanks
Ohh one more thing. I think I can deduct the hosting fees and the domain names under the business expenses.
I was reading the google tax information provided on their website. It says " We will not send you any forms or report your earnings to the IRS if: * You have signed the declaration of No US Activities OR * You have NO earnings from the AdSense program OR * You have submitted a Form W-9 as a corporation and did not have any taxes withheld OR * You have submitted a Form W-9, made less than $600 and did not have any taxes withheld " Now, I have signed the NO US Activities as I don't own any webserver + I have no employees + I am not US Citizen. So, do I still need to file taxes?
My understanding is that you live in the US but have told Google that you live in a different country and have checks sent to an address in that other country with no tax deducted. The IRS doesn't care about your "arrangement" with Google. They want you to report and be taxed on your worldwide income. If you are reporting website expenses you should also be showing website revenues. An IRS audit would catch this.
Thanks for the reply. I don't send the payments outside US. I guess I will just input the revenue as other income in the tax forums. Thanks,
iamfaiza, you better contact your lawyer ASAP. I am on the same boat, having H1b and using Adsense. My lawyer told me i am Fxxked since i broke the immigration law. You are not allow to have Adsense income unless you reported and get a part time H1 for that. he told me i won't get deport right away, but will have problem when i renew H1 or apply for green card. Did you submit you SSN?
Yes, I did submit my SSN. But I never received any tax papers from google. I just found about this and for this I am closing my adsense account (Actually I have closed it). Your lawyer is right but I would not go as far as saying FKED up. It depends on how much you made during the course of year. Don't worry just close the account and remove all ads from the website. You will be fine!
If you have never received any payment, you will be fine. (or you earn under 600) also, did you ever received payment via paypal?
Yes, I received the payment through paypal. I am not under $600 per year and received many payments. It is today that I came to know about this. I have closed the account. I have filled the taxes for all my payments.
I think if you apply for green card through your employer then you might have some trouble, as you can only be employed by one employer not TWO unless you get H1B from the second employer. I am not filing for H1B renewal or Green card through my employer. It will be a family based green card.
You cant recieved payment through paypal............... Question, do you have to file the income you made through paypal????
You are right. I apologize. you cannot recieve payments through paypal. I meant to say direct deposit. sorry about the mix up
I dont think you have to file an income tax for paypal stuff. I am no lawyer but I dont think you need to file anything for paypal.
iamfaiza/ahkip , Check with another lawyer before concluding. H1B is for EMPLOYMENT and as foreign citizen you are allowed to INVEST in us corporations. Did anybody got into trouble for buying stocks in h1B ? So question is "Are you working for the company which generated the adsense income ?" if you answer yes. YOU ARE in TROUBLE. If you invested in a company which generated the adsense income you are absolutely fine.
it is a personal adsense account and the money go right into my account. Anyway, i will check with my lawyer again. Thanks for the tips