Hi guys ... I have read a lot of threads in the forums and see that we need to pay taxes for adsense income ..but why??? does it make sense that adsense income is taxable ? is google not paying tax?
This is called a service tax by providing advertisement service on your site. Google dont monitor whether you pay tax or not ... Its your choice.
Well, its called "income tax". What you get from Google is income. You have to pay taxes. I'm not sure why it would even be a question.
Google pays tax on its profit. Adsense it pays to publishers aren't part of its profits but are expenses. So adsense income is taxable.
Well, I don't know your location its because you have to pay income tax from your income depends on your country like my country don't deduct any tax from foreign income
Lucky u! Do u get paid in usd ?? Im in india so get in local currency..it looks like i will have to pay some tax if my income crosses a certain level
Only if the IRS audits Google. Google pays taxes on income less expenses. You are an expense. If the government wants evidence that the expenses are legit then Google must provide the info.
Its like any other source of income. Your employer (google) uses you as an expense in this case. That means if they claim what they pay you they pay less taxes, so of course they're gonna do it. Now you have to pay taxes on your income too. So set some aside at the end of the year, especially if you make a lot.
They issue 1099s for US publishers (I think maybe only if you made $600?), and the IRS also gets a copy of these 1099s, so yes Google shares earnings info about US publishers with the US government. I don't know what they do with other governments.
No, google is claiming what it pays you as an expense. As a claimed expense they have to disclose the info to the IRS. Thats why you have to fill out a W-9 and claim the income as other at the end of the year or quarterly depending on if you are on an EIN or SSN
No, but your bank (where you deposit Google cheques) shares the info with Govt, once your savings cross a certain level. (I am assuming you are in India) You may not get caught if your income is very low. But once it reaches a level, you are sure to get questioned. I think it's always better to pay.
I dont know where you're from but here in United States you pay taxes for breathing air each day. lol
and in canada you pay taxes and get nothing in return such as something for your city....well at least in the gta area
This is a REALLY simple one guys. Any earnings over $300, Google has to report to the IRS using a 1099 Form. You receive a copy of what is reported for use on your 1040 or 1040EZ (dependent on income). So, if you don't want to pay taxes on it, then dont. The Government excepts 99% of all tax returns as valid, only entering in the amount owed or due. Of course if you get audited, then be prepared to pay for interest and penelties. If it is found that you didn't pay taxes on a large enough scale, or tried to hide the money, get ready for an 8 by 10 box for the next 3-5 years. When it comes to taxes, its better off to just pay them.
For sure... Without a doubt, you need to pay taxes on Google income in the US. If you make over $600, Google will submit a 1099 to the IRS, so there will be no way around it. Except, maybe, jail. Or death, I guess.
What percentage of our Adsense should we consider taxable? In other words how much of our Adsense revenue should we be putting away for Uncle Sam?