Why should we pay taxes for income from adsense

You add it to your total income, calculate deductions etc. and see what income tax bracket you fall under. Then you know what to pay...

 

@$#% it might push me into the next tax bracket.

 

Also remember that you can deduct all reasonable business expenses. This includes things like hosting domain fees, advertising, and maybe even computers, trips etc.

 

thx guys .. for all ur advice.. will need to pay for sure

 

Depends on your tax bracket. If you are currently paying in one of the highest brackets, you'll pay about a third of your Google income in taxes. And if your Google revenue tax is not covered by your exisiting income or salary deductions, you should be sending the IRS estimated tax payments four times a year -- or risk penalties.

 

I live in Australia and it may vary from country to country but I asked my accountant about this when I did my last tax return, I asked what I could claim for etc, She looked in to it for me and a few days later called me and told me to bring any related receipts with me when I do my next tax return.
including hosting, domain registration, computers, software, ISP fees etc.. I am not sure how it will work because I work full time in the construction industry and my website is just a hobby. My adsense related expenses will end up being at least 20 times more than my adsense income, So I hope my adsense income can be lumped with my other income, Then I could add all of these adsense related expenses to my other expenses and get an even better tax return next year
I wonder how far I can push it? Mmmm I may need to buy me a really big plasma or LCD screen so I can review it for my website, Or all the latest gadgets.. Wonder if they would be considered an expense?

Cheers
James

 

Well, frankly speaking all of it register a business and deduct your expenses if you want to lower the amount that will be taxed... that is of course if you report your adsense income