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6 Answers

Taxes (W-9) Form??? Google Adsense?

Asked by: samserio 880 views YA Discussion

I’m just wanting to make sure I have this right. I filed my taxes and I owed on my Adsense Earnings since no taxes were taken out. If I update my tax information (the W-9) form and leave “Exempt from backup withholding” unchecked, Google should then start taking taxes out of my payments and i wouldn’t have to file my taxes, right? Id rather pay them when I get my payments, instead of owing later. Can someone please clarify this for me please, because it seems like a hassle having to file your taxes quarterly for Adsense payments.
But If I Don’t Check “Exempt from backup withholding” and pay the 38% tax, Am I free to spend the earnings I receive?


6 Answers



  1. Max Hoopla on Sep 27, 2012 Reply

    Unless you have been told by IRS that you are subject to backup withholding, you aren’t.

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  2. figment_usa on Sep 27, 2012 Reply

    If you are NOT subject to backup withholding, they will withhold zero and you will have to pay the tax either through estimated tax payments or when you file your return. This depends on how much you owe. As you are considered an independent contractor, you WILL owe some tax.

    If you tell them that you are subject to backup withholding they will withhold at an excessive rate of 38%. You are then likely to get a refund when you file as your total tax shouldn’t be more than 30%.

    Edit: But If I Don’t Check “Exempt from backup withholding” and pay the 38% tax, Am I free to spend the earnings I receive? You should be. Your total tax shouldn’t be more than 30%, so if they withhold 38%, you *shouldn’t* owe any tax and may get a refund. It’s hard to tell without knowing how much income you will have.

    You will have to file a tax return regardless of whether or not they withhold..

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  3. Judy on Sep 27, 2012 Reply

    Nope, not even close to right. You’d have to file in any case.

    Plus if you have a state or local tax, they wouldn’t take out for those.

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  4. Bobbie on Sep 27, 2012 Reply

    Yes just let them withhold the tax amounts out of your GROSS income for this purpose BECAUSE either way you are going to be required to fill our and file your correctly completed 1040 income tax return during the 2013 tax filing season for the 2012 tax year for this purpose and time in your life.
    Schedule C and the SE of your 1040 income tax return self employed independent contractor for this purpose and time in your life.
    Use the search box at the http://www.irs.gov website for What is Small Business Filing Season Central?
    Small Business Filing Season Central is your one-stop assistance center for filing your business returns.

    http://www.irs.gov/businesses/small/article/0,,id=134947,00.html

    Business Expenses
    Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.

    http://www.irs.gov/businesses/small/article/0,,id=109807,00.html

    To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
    It is important to separate business expenses from the following expenses:
    Filing and Paying Your Business Taxes
    Information about which form you may be required to file, where to send your return, and how to pay your business taxes

    http://www.irs.gov/businesses/small/article/0,,id=109805,00.html

    The form of business you operate determines what taxes you must pay and how you pay them. The following are the four general types of business taxes.
    Estimated tax
    Generally, you must pay taxes on income, including self-employment tax (discussed next), by making regular payments of estimated tax during the year. For additional information, refer to Estimated Taxes.
    For additional information, refer to Employment Taxes for Small Businesses.

    http://www.irs.gov/businesses/small/article/0,,id=172179,00.html

    Hope that you find the above enclosed information useful. 09/27/2012

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  5. Cathi K on Sep 27, 2012 Reply

    If it is too much for you hire a bookkeeper.

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  6. tro on Sep 27, 2012 Reply

    38% tax? no way!
    first of all your self employment tax is approx. 13.3% of the Sch C ‘net’ which probably is what you are receiving from AdSense
    if you are single with no dependents(and not a dependent) your non taxable income is $ 9750 which very likely you have not earned from this operation

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