Where to report the income? "Self-Employment" vs. "Other Income".

Discussion in 'General Business' started by pan, Mar 29, 2010.

  1. #1
    Quick question -

    Our revenue stems from 3 sources -
    1) Google Adsense
    2) Website services
    3) Text-link ads.

    Where should they be reported? Under Other Income or Self-Employment?

    We figured that Google Adsense should be "Self-Employment" because of the recurrent contractual agreement made between us and Google. Our website services should also be "Self-Employment" too, because that entity was created for the purpose of revenue. However, should text-links be categorized as "Other-Income"? Our reasoning is b/c text link revenue is usually a one-time fee in which we do not actively persue on a continual basis.

    Of course, under "Other-Income", the revenue would not be subjected to the 15% Social security tax.

    Or has anyone put their website business completely under "Other-Income", since it's merely a side-job that they persue on occasion?
     
    pan, Mar 29, 2010 IP
  2. joshua_

    joshua_ Peon

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    #2
    do you have a business license? LLC, Inc, etc? How many employees do you have (if you have employees?)
     
    joshua_, Mar 30, 2010 IP
  3. hotelier

    hotelier Peon

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    #3
    You are filling out 1099 tax forms for yourself, right? Or are you an incorporated business?
     
    hotelier, Mar 30, 2010 IP