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Adsense and taxes

         

chewyluke1

12:42 am on Feb 11, 2020 (gmt 0)

5+ Year Member



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.

lammert

7:44 am on Feb 11, 2020 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Welcome to WebmasterWorld chewyluke1!

Everyone's tax situation is different so it is difficult to give you personalized advice here, we leave that to people with knowledge of your specific situation like your accountant. As a general rule, you will be able to deduct costs you made for your website like costs for hosting, promoting, etc from your earnings.

As you mention 1099 and IRS I assume you are US-based. In that case information on the IRS page for self-employed [irs.gov] may give you more guidance. I would advise directing any specific questions to an accountant in your neighborhood as we do not have the knowledge--nor are we allowed by the forum rules here--to discuss the details of individual tax situations.