SEM Tycoon

**Raize** · 09-27-2006, 03:22 AM

Ive been looking into making money off forums/adsense for a while now. Ive seen some big cheques being flashed around but are web earnings taxable by the government? Technically its an income so it should be right?...or maybe the web is still that unregulated that this isnt an issue...someone please clear things up

**007** · 09-27-2006, 03:45 AM

It's income, so it's taxable wherever your business is incorporated, or wherever you live as a sole proprietor.

If you don't pay taxes on your Adsense earnings you may find yourself in jail.

**Chris 96 WS6** · 09-27-2006, 01:48 PM

Yes its taxable. If you report your earnings as business income be prepared to pay self-employment tax (about 15%...or equal to the combined employee and employer share of Social Sec./Medicare taxes paid at a normal workplace) plus income tax based on your bracket. I usually hold out about 1/3 of my net for taxes, and if you expect to owe more than $400 or so in tax at the end of the year you are techically supposed to make quarterly estimated payments or you could face penalties.

**Raize** · 09-27-2006, 01:57 PM

How many of you "earners" actually pay the taxes though. Im not asking for any confessions obivously, but what if I'm just sum 16 year old kid with a website bringing in 2 grand a month...am i realistically expected to file taxes and have an inc. company and all that?...

**MonkeyBiz** · 09-27-2006, 01:58 PM

Um if your adsnese account is under your prents name they have to file. There is no way around it.

**handsome rob** · 09-27-2006, 02:50 PM

Quote:

Originally Posted by Worldwebuser

Um if your adsnese account is under your prents name they have to file. There is no way around it.

Sure there is. Federal "pound me in the @$$" prison! :thumbup:

**Frito Pie** · 09-27-2006, 04:00 PM

Quote:

Originally Posted by Raize

How many of you "earners" actually pay the taxes though. Im not asking for any confessions obivously, but what if I'm just sum 16 year old kid with a website bringing in 2 grand a month...am i realistically expected to file taxes and have an inc. company and all that?...

I pay taxes on my internet income and have for many years now.

And yes, a 16 year old making 2 grand a month is taxable. If you don't pay it, your parents (as you are their dependent) will be liable and could face stiff penalties.

Report your income just as you would any other job from McDonald's to lawn-mowing. To do otherwise is not only illegal but unethical.

**johniman7** · 09-27-2006, 04:29 PM

What is the purpose of adsense's tax form? I filled out the form with the correct information. Will they start taxing me when I need to or forward the info to the right people or do I have to do it myself. I don't think I make enough now to be taxable but it may be.

How would I go about "claiming" this. I currently havn't had to do any taxes. Taxes are already taken out of my job at a pizza shop.

**xboxundone** · 09-27-2006, 11:51 PM

PAY your taxes!!!!!!! trust me it is not worth the risk of not paying them.

**Raize** · 09-28-2006, 02:11 PM

Man growing up sucks, I never had to worry about filing taxes or keeping track of how much I made before :S

**figaro** · 09-28-2006, 07:21 PM

I am not responsible if rely on the information contained here, I am not a legal expert, but from my own personal research in the past.
Seek your own legal advice or that from your taxes office

PAY YOUR TAXES.
Track/Record all your payments, when where
Track your expenses

In various countries you may be able to avoid paying any tax where your earnings are low because you can usually deduct some if not all of the following.

- Internet connection (its a business expense, without it you can't run your website/business)
- Domain fees
- Hosting fees
- Hosting Extras/Add-ons.
- Wages of other employees

Also usually you offset your losses one year against the next.

If you are running a high yielding website/business, seek the advice of a commerical lawyer or accountant. It may be a bit expensive, but it will set you up properly and legally with what you can do in your country/territory.
(in some instances they can probably more than save the expense because they know what personal allowances can be deducted etc)

**gorx** · 10-02-2006, 06:27 PM

Of Course its Taxable!

If you don't qualify for the minimum earnings amount, you should still keep tabs on your income so you have proof for when the tax man comes.

**junger** · 10-04-2006, 12:59 PM

I'm not a legal and/or tax expert by any means, so do more research, but from my understanding -- if you are under a certain age and make less than a certain amount per month working part time, you don't have to pay taxes on it.

But don't quote me. Do more research -- into tax law -- on this.

**mic510** · 10-07-2006, 02:52 PM

If you make less than $7500/yr. in my state of NJ, for example, you do not need to file a tax return. If you made more, you need to file. Also, if you have a social security number and/or tax identification number, and you are being paid according to either number, then it is being tracked by somebody whether you know it or not. So, if it is not reported, you could have the IRS showing up at your door someday.

Just research the applicable laws in your state and seek the counsel of a qualified professional on the subject.

**Romestar** · 10-08-2006, 01:15 PM

Quote:

Originally Posted by handsome rob

Sure there is. Federal "pound me in the @$$" prison! :thumbup:

lol! I just watched Office Space last night.