Hello, I've just made my first $130.00 on my website . My concern is the tax part--i never had to pay them before...do i pay them monthly or yearly? Is there anyway i can get google to take out the taxes and pay them for me... Please me Kind,Lora <BR><BR> <p align="left"> <a href="http://www.puppyhookup.com/pupsite/index.php? " >PuppyHookup.com</a>Classified Site For Puppies
Knowing what country you are in might help people from that country answer you. It really depends and you should talk to a local tax consultant. In the US, depending on how much you make (and how much you make from other income where takes are already taken out) the answer is quarterly. And if you are in the US you might also want to consult the IRS Small Business and Self-Employed One-Stop Resource.
Well, congratulations on gettng the payment. And, to get live links and signature, you should have at least 10 posts...
Hi Lora, assuming you live in the USA, the short answer is YES! you have to pay taxes on every single penny you make, even if it's a cent you find on the ground. The long answer is that if $130 is all you make this year, you may not even have to file a tax return. Sadly, the tax laws in this country are so complicated that the best advice that I or anyone else could give you is to discuss it with a professional.
The main thing is to keep track of your income (the AdSense revenue) and your expenses. You're running a small business now and you'll be able to deduct certain things (your web hosting costs, your domain name registration costs, maybe even part of your ISP bill) as expenses from that income. But as the other say, it really varies from jurisdiction to jurisdiction. The best advice is to put some of the money you make aside so that you can pay the taxes when they're due. It's easier to do it right away rather than try to cough up the money all at once when you've already spent it
When you sign up for adsense you have to list your SS or Tax ID. It's already recorded/reported from there. You should receive a W9 from google. From there, add it to the other crap you get overtaxed for (if you are in the US) and file your tax return like normal. That is about it.
When you start making enough money, though, the government usually asks you to start paying taxes quarterly. Again, the best advice I can give you is to (a) talk to a qualified tax professional for your jurisdiction, (b) realize you're running a business, and (c) put some of the money you make aside to avoid a nasty shock later.
Income tax? Or sales tax? We filed sales tax quarterly, but income tax? I've not seen that before. How much do you have to make to do that. I've not heard of that before. Income tax in the US is as far as I know always been yearly.
It depends how much you owe at the end of the year. Ultimately the IRS wants you to owe nothing when you file your taxes and give you nothing back. Consult a tax advisor, however once you start making a certain amount you need to pay quarterly, otherwise if you wait until the end of the year and owe a ton you will also have to pay a fine for not making quarterly estimated taxes. Consult a tax advisor. I'm not one.
And I forgot to clarify. Depending on how much you make you need to pay quarterly. However what I think you are talking about is filing which yes happens once per year. If you have an employer who takes taxes out of your check then you are paying every time you get a paycheck but filing once per year. If for example you are self employed and make enough money then you need to pay your taxes quarterly and still file taxes annually.
Obviously it depends on the jurisdiction. In Canada, if for two consecutive years you owe the government more than $2000 when you file your taxes then you're required to start submitting quarterly instalment payments from then on. When you're employed it's usually not an issue -- the employer deducts tax at source and you shouldn't owe anything when you file, often you even get a refund. It's when you make other income -- AdSense included -- that things become tricky. As always, consult a tax professional for your jurisdiction for the details, because they vary a lot. And this is all income tax, not sales tax. You're not selling anything, so there's no sales tax to be collected.