Are payments "on hold" not "earned"?

For tax purposes?

[Nick Jachelson]

I have decided it would be better if I let my payments build up in my account by placing them on hold and then withdraw them as a lump sum at a later date.

Am I correct in assuming that Google will not report to the IRS money that I earned but had not actually been paid?

[ann]

You have the right and the opportunity to have that money in your hand...it is no more than socking it into a box and keeping it safe from spending. (an interest bearing savings acct would make more sense).

It is yours and here in the USA uncle wants his cut...yes Google will report those earnings up to the end of the year that you would have recieved but CHOSE not too.

Ann

[toomuch72]

That is correct--On hold you do not have to report to the IRS. They really push the On Hold thing towards the end of the year for that reason. Once you recieve payment or even if the CHECK HAS BEEN ISSUED then you are responsible.

You can also note that any check issued after the end of the year but money "earned in google" prior can go towards the next years taxes.

This being said some companies pay based on potential earnings or and you can report the income "earned" that year to avoid it being on the next years taxes-

Edit: If you are holding funds for the sole purpose of avoiding taxes you will eventually end up having to pay one way or the other. And large lump sums of cash always make the IRS look a bit closer.

Disclaimer: For best results talk to a tax attorney.

[ann]

Nope, I believe as long as it is "constructively received" (meaning you can choose what to do with it) then you have "earned it for the year".

Don't take my word for it, ask Google how they report. I've only been a tax consultant and instructor for about 30 years before retiring but tax laws being what they are things could have changed.
:)
Ann

[mzanzig]

Wait! Money that is kept on Google is not earned - yet. If you collect your earnings for any period and decide to "unhold" the earnings mid-January, there is still a (small) risk that Google might ban you (now that you want to see the money). So in the end, you might end up having paid the taxman without ever having received the money.

I strongly suggest to always receive the money asap, ideally using EFT. No hazzle, no worries, and reliable.