N00b questions

[vip-ip]

Being the webbed freak that I am, I have some newb questions about AdSense.

To receive payments, you need a valid bank account, and you must verify it. I did that; I received their deposit, and have confirmed it. Now, I need to enter my SS info, which will be my dad's (my bank account is in his name).

My questions are:

>> How will Google use this info?
>> What taxes will I have to pay?
>> How will I know how much is due to the IRS as tax?
>> Will Google keep my info secure? Can me entering a SS # ruin something like credit record?
>> Will Google report my earnings to the IRS or something like that? WHY do they need it?


I would appreciate an answer from someone who had to deal with taxes paid by Google's AdSense stuff. Thanks!

 

[RJ]

Being the webbed freak that I am, I have some newb questions about AdSense.

To receive payments, you need a valid bank account, and you must verify it. I did that; I received their deposit, and have confirmed it. Now, I need to enter my SS info, which will be my dad's (my bank account is in his name).

My questions are:

>> How will Google use this info?
>> What taxes will I have to pay?
>> How will I know how much is due to the IRS as tax?
>> Will Google keep my info secure? Can me entering a SS # ruin something like credit record?
>> Will Google report my earnings to the IRS or something like that? WHY do they need it?


I would appreciate an answer from someone who had to deal with taxes paid by Google's AdSense stuff. Thanks!

All U.S. companies are required to report yearly earnings to the IRS in excess of $500. That is why Google asks for a SSN.

After the year ends, Google reports earnings to the IRS and you will receive a 1099 form, which tells you how much you earned (and how much was reported). It's your responsibility (or your dad's if you used his info) to file an income tax return with the IRS.

If you live in the US, this is something you have to get used to. Everyone who makes income is required to file a tax return by April 15th every year for the previous year's earnings.

RJ

 

[vip-ip]

All U.S. companies are required to report yearly earnings to the IRS in excess of $500. That is why Google asks for a SSN.

After the year ends, Google reports earnings to the IRS and you will receive a 1099 form, which tells you how much you earned (and how much was reported). It's your responsibility (or your dad's if you used his info) to file an income tax return with the IRS.

If you live in the US, this is something you have to get used to. Everyone who makes income is required to file a tax return by April 15th every year for the previous year's earnings.

RJ

Our family usually files taxes awhile before that time, so I guess it wouldn't be a big problem.... so, they will send us a form with the total amount due to them?

 

[RJ]

All U.S. companies are required to report yearly earnings to the IRS in excess of $500. That is why Google asks for a SSN.

After the year ends, Google reports earnings to the IRS and you will receive a 1099 form, which tells you how much you earned (and how much was reported). It's your responsibility (or your dad's if you used his info) to file an income tax return with the IRS.

If you live in the US, this is something you have to get used to. Everyone who makes income is required to file a tax return by April 15th every year for the previous year's earnings.

RJ

Our family usually files taxes awhile before that time, so I guess it wouldn't be a big problem.... so, they will send us a form with the total amount due to them?

Not exactly. Google sends you a form that tells you how much you earned from them. It's up to you to figure out how much tax you owe and pay the IRS.

 

[vip-ip]

Not exactly. Google sends you a form that tells you how much you earned from them. It's up to you to figure out how much tax you owe and pay the IRS.

How do we figure that out? Is it the regular % that you pay off to the IRS or?...

 

[Zeeble]

How do we figure that out? Is it the regular % that you pay off to the IRS or?...

Depends on many things:

1. Country of residence
2. Current household income
3. Number of children (possible)..

See where I am heading? You'd better check with the institution which deals with taxes in your country.

 

[RJ]

How do we figure that out? Is it the regular % that you pay off to the IRS or?...

I can't really tell you how to do your taxes. It's not as simple as x%, a lot of other factors go into it. You live in the US right?

You can use an accountant, hire an accounting service (H&R Block), get easy to use tax software (ie: TurboTax or TaxACT -- a good option), or just get ahold of the tax booklets and forms and do it yourself. Most people work on their income tax returns in March and April. My local post office stocks all the forms and booklets needed around that time.

The forms are basically fill-in-the-blank worksheets that help you figure out how much you owe. For tax reasons you are considered a contractor for Google Adsense so it will be a little more complicated.

Good luck,

RJ

 

[vip-ip]

I can't really tell you how to do your taxes. It's not as simple as x%, a lot of other factors go into it. You live in the US right?

You can use an accountant, hire an accounting service (H&R Block), get easy to use tax software (ie: TurboTax or TaxACT -- a good option), or just get ahold of the tax booklets and forms and do it yourself. Most people work on their income tax returns in March and April. My local post office stocks all the forms and booklets needed around that time.

The forms are basically fill-in-the-blank worksheets that help you figure out how much you owe. For tax reasons you are considered a contractor for Google Adsense so it will be a little more complicated.

Good luck,

RJ

Thanks, I apreciate it