How do I pay tax for Adsense income?

Question

I have U.S. green card.(living in Michigan)
I'm about to earn $100 check from Google.
I'm just wondering about how much tax I have to pay.
And what if I say I'm a foreign publisher so that I don't pay tax.(I just wonder)
in the end, how do I pay the tax.

Thanks for answering my question, Eleven. You didn't answer what I asked.
-I earn $100~$200 a month. How much % should I pay for tax?
I appreciate for your answer.

Answer 1

Since you are a US resident, you are subject to US taxation on your world wide income from all sources. Claiming that you are a foreign publisher with Google would actually be a crime -- tax fraud to be exact -- so don't even think of that! (You could also run afoul of any foreign tax laws by doing that which would compound the misery.)

If you're not operating a business and this is just miscellaneous income you'll list it on the Other Income line on your tax return, line 21 of Form 1040. It's taxed as ordinary income so how much tax will be there will depend upon your other income.

If you are running a business, this is part of the business income and must be included as such on Schedule C or C-EZ when you file your return. You'll also pay Self-Employment taxes on it, via Schedule SE, along with the rest of your business profits. The Self-Employment tax rate is 15.3% of the net profits from the business activity. Income tax will depend upon your other income and could vary from 0% to 35% depending upon that other income. Without knowing all of the facts and number it's not possible to give you an exact percentage.

Answer 2

If you earn a good income from your Google Adsense ads, then paying taxes is essential and tax planning is required.

Google AdSense Tax Information page provides detailed information about how tax-related information is processed from all AdSense publishers. You are solely responsible for providing and maintaining accurate tax information associated with your account. Google collects tax-related information from all AdSense publishers. They say your tax information is being collected in compliance with U.S. tax laws, and will be securely stored, encrypted, and used for tax purposes only.

It is the responsibility of each publisher to understand and adhere to the appropriate tax rules. Until they receive your tax information, Google might hold all your payments.

For tax purposes, requirements vary depending on if you are a U.S. Business, Non U.S. Business (No U.S. Activities) or Non U.S. Business with U.S. Activities. Your tax information can be submitted from your publisher account at the ‘Tax information’ page. For more information regarding U.S. tax requirements, visit the IRS website.

Adsense Taxes is a free resource providing more information on paying Income Tax on Google Adsense Revenue. You should always consult your tax advisor to help about how tax laws and regulations apply to you and/or your business. Tax or investment advice is essential to make profits and keep them.