How do taxes for Adsense work?

I'm a student in high school, but I want to make a little cash on the side so I signed up for Adsense under my parent's name since you have to be over 18. Well, since I'm so young, I barely know anything about taxes, so what exactly would my parents have to pay, and will they get a letter in the mail saying X amount of money is due to claim your adsense money?

Or should I just uncomplicate everything and wait two years, and then sign up for adsense? I'm rearing to make some cash, though.

 

Wait two years to make some cash? Two years of internet experience is a value you can't pay for.

I'd speak to your parents and ask them...

 

Actually, my parents don't trust me enough to give me their SS Number, but my brother in college said he'd let me use his name. He doesn't really know what he has to do with the taxes since he's never filled out any tax paperwork before.

 

Its a big pain in the ass but if you arent much you shouldnt worry about it. If you are making a significant amount then ask your parents for guidance...

 

Assuming you're American, H&R Block puts my adsense earnings on schedule C. I think it says if you earn less than a certain amount you don't have to report the business earnings. That amount might be 400.00 but I don't remember.

 

In the state of oregon, if you make under 25,000 with any business you do not need to get a business license. That income that is under $25,000 should be claimed on your personal taxes both state and federal, and is taxed as "other income". YOU ARE RESPONSIBLE FOR FILING THIS MONEY ON YOUR TAXES. Be assured that google (or any other company that pays you for a service) has an entire department that will show the governement any moneys they have paid you and all the other people that use adsense and have been paid.

The info will change with each state, for the state taxes. Just call your local state tax office and ask them.

 

Bottom line is the IRS wants ALL income from ALL sources listed.
Make xxx from adsense, xxxx from selling ebooks, xxxx from any source, they want it shown.

Now, most companies do not bother telling IRS how much you made if it is under a certain amount (varies from company to company).
If google or another company wants your ss number, more than likely you will get a form 1099 for any income google paid you or any company paid you.

My advice to you is the same as to my tax clients...
KEEP RECORDS OF ALL INCOME, OUTGO (HOW, WHY, WHEN, HOW MUCH).

IRS has a nasty tendency to go after so-called home businesses where there is a lot of expenses shown, with little or no income.

The Iowa Dawg

 

The ol' write off trick. So many people love to write off purchases for their "business" yet don't end up making any money (or very little). That is a super red flag to the IRS that some investigating may be in order.

 

Try doing taxes for farmers, ranchers and independent contractors.
Found out a long time ago, why these people want cash, no transfers or checks!

And I discovered that a rancher has one price on a cow, the sales barn will give another price, and IRS has yet another price.

The Iowa Dawg

 

My $99 "Make Money with Adsense Secret Course"

1 get A+ computer education
2 get a job at Google and insert secret program into their computers so all your cloaking and scraper sites go un-noticed
3 create 10000 said scraper sites with cloaking
4 get adsense for your sites
5 funnel money overseas so you don't pay taxes
6 enjoy your adsense revenue while sitting on a beach in fiji

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