Questions on Google Adsense earnings

[marilyn_]

What is the name of your state? California

I've been a member of Google Adsense since 2004 for a web site I run as a hobby. In 2004 and 2005, it was my only actual income. I made less than $600 in 2004, and more than $600 in 2005. When I called H & R Block in 2005, they said that it did not need to be filed as it was under a certain amount, so I didn't worry about filing any taxes those 2 years. In 2006, I made money from Google Adsense, as well as about $3800 from a job I started late last year. I was told again since I made under a certain amount, I did not need to file. But I wanted to look into it more anyway to get back the taxes from my job. Now I have been reading all of this information about Google Adsense earnings having to be filed if over $600 because it is a 1099-MISC form, or you become in danger of an audit. But I don't know if that information that I read was only meant for people whose income is high enough to have to file anyway.

Is this true if it was my only income?

Please don't think I'm an idiot... I'm really not. I'm just young and have never done taxes before. I'm scared you-know-what-less now for not filing the previous 2 years. Any advice would be very much appreciated.

 

[LdiJ]

What is the name of your state? California

I've been a member of Google Adsense since 2004 for a web site I run as a hobby. In 2004 and 2005, it was my only actual income. I made less than $600 in 2004, and more than $600 in 2005. When I called H & R Block in 2005, they said that it did not need to be filed as it was under a certain amount, so I didn't worry about filing any taxes those 2 years. In 2006, I made money from Google Adsense, as well as about $3800 from a job I started late last year. I was told again since I made under a certain amount, I did not need to file. But I wanted to look into it more anyway to get back the taxes from my job. Now I have been reading all of this information about Google Adsense earnings having to be filed if over $600 because it is a 1099-MISC form, or you become in danger of an audit. But I don't know if that information that I read was only meant for people whose income is high enough to have to file anyway.

Is this true if it was my only income?

Please don't think I'm an idiot... I'm really not. I'm just young and have never done taxes before. I'm scared you-know-what-less now for not filing the previous 2 years. Any advice would be very much appreciated.

If you have self-employment income of more than 400.00 you are supposed to be filing an income tax return. Therefore, if google treats the income as non-employee compensation on form 1099 Misc, then you may have an issue.

 

[marilyn_]

Thank you for the reply. Any advice on what I should do? I'm going to H & R Block this weekend to file my 2006 taxes. 2005 is the only year I made over $400 and did not file. Would it help me any to bring the 2005 form with me there?

 

[LdiJ]

Thank you for the reply. Any advice on what I should do? I'm going to H & R Block this weekend to file my 2006 taxes. 2005 is the only year I made over $400 and did not file. Would it help me any to bring the 2005 form with me there?

Then you simply need to file a tax return for 2005, and pay the tax that is due. Even with penalties and interest, its likely to be less than $100.00.

 

[marilyn_]

Thanks again for the help. Just to make sure, do I still need to file for 2004, even though I made less than $400? Looking up information on this is confusing, because some places say yes, and some say don't bother. I'm not sure I even remember getting a 1099 in the mail for that year. And I'm still hurting from the H & R Block fees

 

[LdiJ]

Thanks again for the help. Just to make sure, do I still need to file for 2004, even though I made less than $400? Looking up information on this is confusing, because some places say yes, and some say don't bother. I'm not sure I even remember getting a 1099 in the mail for that year. And I'm still hurting from the H & R Block fees

No, you don't need to file for 2004 if it was less than 400.00