02.04.07
It’s Tax Time.. Again!
That time of year has come again, and as much as you don’t want to, if you made over $600 from AdSense in 2006, you need to report your income to the IRS. Unfortunately, Google AdSense income is taxable income. Remember, Google takes income from clients who pay money for their ads to be run through AdSense. In order to reduce their overall income (and thus reduce their taxes) they will declare payouts to you as an expense. To Google, you are an independent contractor, being paid via 1099-MISC and this relationship will be reported to the IRS.
For more information on how Google will report your income, and how you should declare it, refer to my previous Google Adsense Tax article, posted last year.
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You actually must pay taxes on any income you make from Google AdSense, whether it’s $600 or six cents. Just because they don’t send you a 1099 and don’t report it to the IRS doesn’t mean it’s tax free income. If that were the case, it would behove many bloggers who make around $700 a year from AdSense to shut off their ads right before they hit the $600 mark to save on taxes.
Hi,
I havent made such a huge amount, Since I started blogging in sept 2006 , I havent even accumulated $5 in my adsense account, but getting paid from other programs.
Please let me know how do I increase my adsense earnings.
Thanks in Advance