Tax Information For Google Adsense

Discussion in 'Profit Lance' started by forever03, Jan 5, 2008.

  1. forever03

    forever03 New Member

    Hi, I'm new to the Profit Lance system and I am trying to learn as much as I can for Google Adsense. I would love to be able to make enough from Adsense to not have to work anywhere else so when my and my fiancee get married I can raise our kids at home. What I have some questions about though I have not gotten any answers back from Profit Lance and its been almost a week.

    I am new to the whole tax thing as I have only done my taxes for one year, even so my parents did that for me. (I live in the USA in case that matters...) So I was wondering what you have to do for Google Adsense as far as taxes? I heard if you made over $600 a year you had to claim them but say if I start making 1-2k a month is it going to cost me a lot in taxes?

    I don't want to get into the whole Adsense thing if its not going to be worth it at the end of the year when taxes come out.

    If anyone could explain how that works that would be great! And if anyone wouldn't mind sharing how much the taxes for it generally are that would be awesome as well! Also do they take taxes out every pay check like a real one so you don't have to worry about it and you get money back? I'm very confused...

    One more question, when I put my sites up (still working on content and if anyone has any experiance with the Instant Article Wizard and if it really works that'd be great too!) is it ok to use free hosting if i'm going to use Google Adsense?

    If you could help me that'd be great and thanks!
     
  2. pcwork

    pcwork New Member

    For Adsense, you can write off many of your expenses like computer costs, electricity and internet charges, so your net income will be less.
     
  3. happywife

    happywife Gold Member

    Regarding the tax issue, it varies from person to person, so it is best to talk to a tax accountant or someone you know who is quite knowledgeable in that area. Don't just trust what someone tells you online. [​IMG]

    Google does not take out any portion for your taxes. You are not considered an "employee" of Google. You are more like self-employed. You will receive a Form 1099 at the end of the year which you will be wholly responsible for paying the taxes. If you do as pcwork has already suggested, you can write off a lot of different expenses as "business expenses" which will bring your "profit" down so that you will pay less tax.

    Generally, if you just work as a "sole proprietor" or "individual" you will have to pay your own Social Security and Self Employment Tax which I think is around 35% (I haven't dealt with US taxes in a few years, so someone may need to update that for me. [​IMG] ).

    Anyway, as I said initially, it is best to talk to a tax accountant - a good one. There are plenty of ways to keep your taxes down if you do it properly, stay organized, and keep good records. It is definitely "worth it" if you do it right.

    Sorry I can't help you with the Article Wizard info. I don't know anything about it.

    Regarding the free hosting, I'm not sure about that either, but I would imagine that it isn't going to be in your best interests in the long run. If you are serious about making some decent money with this and are willing to put in the time and effort to do the job right, spend that little bit a month to have professional sites with proper hosting, etc. Don't worry, it's a tax write off! [​IMG]

    Hope that helps.
     
  4. forever03

    forever03 New Member

    Thanks pcwork and happywife! That helps! I know I should be using paid hosting but I am out of a job right now so I don't really have much choice, would it be ok to have free hosting until say, I make some money off of it and I can switch?

    Thanks for the tax info I will go and ask some tax people about it!
     
  5. pcwork

    pcwork New Member

    Hosting is fairly cheap, do some freelance work, you will be able to cover your hosting costs easily
     

Share This Page