Google AdSense tax information is a question that I get asked all the time from my fan base. Questions like, what type of job should I write under my TurboTax self-employment when filing my taxes? And many more like that.
Well, the information that I am about to share with you is from personal experience because I have a couple of websites that display Google ads. Although I don’t make much from my websites, I still file my taxes every year because that is the law.
I will walk you through how I filled out my tax form based on AdSense income only!
There are other types of income from Google like Advertising service income from Google (YouTube Publishers, Ad Exchange AdX, AdMob, Google Ad Manager, Books Publishers, Music Artists, and YouTube Artists) and payments from consumer transactions made through Google (Google Play developers, Google Wallet Commercial Sellers, Chrome Developers). Still, this article is only about Google AdSense.
Know that if you live overseas, according to the Google support forum, “Google isn’t going to send you a T4, or for that matter, any T forms. AdSense income is reported as self-employed income (It isn’t a job and taxes aren’t deducted at source).
To calculate your earnings, you can take the earnings data through the payments setting for the relevant tax year –print out the information and then add up the numbers in my spreadsheet” (Https://Support.Google.com). You can also check out this good YouTube video about how to fill out your Google AdSense application.
Note: I am not a financial advisor, and you should NOT take my information as financial advice. All the information on this website is from personal experiences, and your situation might be different from mine.
So please consult with your financial advisor before you commit to making any financial decision that may or may not hurt your finances. Thank you! Now that we have that out of the way let’s talk about what I write in my tax form.
What Should You Write As Your Profession on Your Tax Form?
On my tax form, I filled out the application as a writer because according to the NAICS code (the IRS uses this website as a guide tool for classifying your income). For individuals operating as writers, the North American Industry Classification System (NAICS) provides a specific code – 711510 – Independent Artists, Writers, and Performers – that closely aligns with writing as a profession. This code is the most relevant NAICS code for writers and digital content providers.
- NAICS Code: The North American Industry Classification System (NAICS) code is a six-digit code that classifies your business’s economic sector, industry, and country. While the IRS doesn’t list every possible job, it does use NAICS codes for classification.
- For online content creation and monetization, a relevant NAICS code might be something related to “Publishing Industries (except Internet) (NAICS code 511)” or “Internet Publishing and Broadcasting and Web Search Portals (NAICS code 519130)” depending on the nature of your work. You can find the most appropriate NAICS code by searching the U.S. Census Bureau’s NAICS code lookup tool.
This category includes individuals such as freelancers and independent contractors who are engaged in creating or providing creative and artistic works or services. This encompasses a wide range of writing-related activities, including but not limited to authors of books, playwrights, screenwriters, scriptwriters, and technical writers, among others.
The NAICS code 711510 is used for tax purposes and by various government agencies to classify and analyze the economic activities of independent professionals in the creative arts, including writing. If you’re filing taxes or setting up a business entity as a writer, this code can help you categorize your professional activities accurately.
Remember, the choice of NAICS code should reflect your primary business activity. If your writing business involves multiple activities that could fit under different NAICS codes, you would typically choose the one that represents the majority of your income or time spent. If you’re uncertain about which NAICS code best fits your specific situation, it may be helpful to consult with a tax professional or business advisor.
This category of freelancer puts your taxes as a self-employed, and when you’re doing your taxes as a self-employed individual, especially in the realm of content creation and online publishing, classifying your job for the IRS can feel a bit tricky due to the diverse nature of such work. The IRS categorizes income and occupations in broad terms.
For individuals like you who create and monetize content online, the most relevant classifications could fall under several categories depending on the specifics of your activities. Again, I chose to categorize mine as writing because that is what I do most of the time.
Here’s a simplified breakdown of how you might classify your work:
Self-Employed or Independent Contractor: At a fundamental level, if you’re creating content, publishing it online, and monetizing it without being employed by another company to do so, you’re considered self-employed or an independent contractor. This is a broad classification under the IRS and includes various types of work.
- Business Income: The money you earn from your content creation and online publishing is generally considered business income. This is reported on Schedule C (Form 1040), Profit or Loss from Business. You would classify your business based on what best describes your primary income-generating activities. For content creation and monetization, this might include categories like “Online Advertising Revenue,” “Digital Content Production,” or similar.
- Miscellaneous Income: If you receive payments from a variety of sources (e.g., different advertising platforms, sponsored content, affiliate marketing), this might be reported as miscellaneous income if it doesn’t fit neatly into another category. This is typically reported on Schedule 1 (Form 1040), Additional Income and Adjustments to Income.
In conclusion, if you want to file your taxes based on Adsense income, you can do so using the form that Google provides (1099-MISC, 1099-NEC, 1099-K, or any other form that you might have received). If you don’t make enough to receive the form from Google, then you need to report the amount that you made to the IRS yourself.
Resources
- The North American Industry Classification System (NAICS) – https://www.census.gov/naics/