Hello,
I am a 3rd year website owner who after 2 full years of successful promotion, constant advertisement and a lot of publicizing my site has become somewhat popular to a niche youth sports community, (the parents, not the kids). My traffic has increased substantially over the last 3/4 of 2019 my ad revenue finally increased to a modest sum.
Which brings me to question. My ads made a total of $586 over the course of 2019. I just got my 1099 and after my wife reviewed she concluded we will owe approximately $500 back to the IRS because of the adsense untaxed revenue I collected. This seems like a nonsensical question but we don't ever owe anything and with the money generated from Google, we apparently now will. So now the question. If I'm running adsense on my site and the revenue it generates is going to have to all be paid back at tax season, what sense does it make to allow the ads if I have to pay everything back that I make?
Has anybody else experienced this? Thank you to all and for any feedback anybody can offer.