Boring Tax Question! Woo!

[kingofsp]

I'm curious as to how earnings are reported to the IRS by Google Adsense. Are they reported regularly, or when a payment is actually made? Like, if I just let cash accrue in my adsense account until the end of the year and then request a payment next year, will I have to claim what I made this year as income (for this current tax year)? Or would it need to all be claimed as part of next year's income? I'm guessing the latter, but I thought I'd ask the pros. Any info would be appreciated! Thanks.

 

[kingofsp]

They will send you a 1099-MISC at the end of the year for the money you made, whether you defer it or not. For them, it's what you made in the previous year is what the 1099 will say.

However, and I am by no means a tax expert, your accounting may be done cash or accrual method and this can change how you count your revenue, which is what matters to you... talk with a CPA.

Okay, thanks for the response!

 

[spock49]

spot on with advise. cash or accrual methods is really not relevant here though. money sitting in your google is like having money in the bank (i.e. constructive receipt).