Do You Need to Pay Taxes on Adsense?

Posted on 08. Feb, 2006 by in Taxes

If you’re a blogger or webmaster and have included Google Adsense anywhere on your blog or site then you are responsible for paying taxes on your Adsense income. If you remember, Google asked you for your SS number, address, etc. for tax purposes when you first signed up. And if you earned any money off your ads last year then you most likely received a 1099-misc in the past few weeks. The 1099 means a few things:

  • Google considers you an independent contractor
  • Because you are classified as an indpendent contractor Google doesn’t take out taxes before your check arrives
  • However, it also means that you are responsible for taking those taxes out yourself when filing your personal tax return
  • Google reports your income to the IRS, so if you don’t include it on your return, the IRS will know.
  • You’ll most likely include Adsense income on a Schedule C
  • There are deductions available for your “business” which include any reasonable and ordinary business expenses

In short: if you have Adsense income be sure to include it on your tax return.

If you need more specific information please visit IRS.gov or Google’s tax page.

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