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Tax Withholding

Google withheld tax from my last payment

     
5:03 pm on Mar 27, 2005 (gmt 0)

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I have a U.S. corporation with an EIN number registered with Google AdSense. The most recently reported payment (not yet received) was reduced by an approximate 25% "Tax Withheld". Has anyone else experienced this? There was no indication or justification whether Google Adsense wittheld State, Federal or Local taxes. Is this now going to happen every month or was this a one-time withholding?

Surprised!

5:42 pm on Mar 27, 2005 (gmt 0)

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Odd. Was there some kind of tax judgment against your company, perhaps?
5:58 pm on Mar 27, 2005 (gmt 0)

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I have heard nothing or received nothing in writing from the either Google or the IRS or any other tax authority indicating any sort of judgment or other reason for the withholding. I sent an inquiry to Adsense, and am awaiting their reply.
7:18 pm on Mar 27, 2005 (gmt 0)

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I can find nothing at all about tax withholding in the AdSense FAQ or via a search of the site.

You may be incorrect about your situation. The only thing I can find: 1) They will hold all money until the proper form has been completed with them. 2) They are not responsible for anything thing tax related (except for the form), it is completely in the hands of the Publisher to know their specifc tax laws.

9:39 pm on Mar 27, 2005 (gmt 0)

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I have my individual SSN registered with Adsense, and my most recent payment (March 23) also shows a tax withholding. Mine is closer to 27% than 25%, though.

I'm guessing I'll get it as a W-2 next year and be able to file for a return.

Interesting, but it may be wise to talk with a tax accountant before relying on Google to pay our taxes for us.

10:01 pm on Mar 27, 2005 (gmt 0)

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I'm glad to hear I'm not alone. When I did the calc, I found my "Tax withheld" was actually 27.9%, not 25% as I first estimated. I reported it to my accountant.

The date (March 23) of the payment and withholding is also the same as the one you reported.

12:19 am on Mar 28, 2005 (gmt 0)

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I have 2 accounts and they took 28% out of 1 account and nothing from other account. First time. I have no IRS problems and am sole proprietor in the U.S. I emailed Google. Hopefully, error
3:28 am on Mar 28, 2005 (gmt 0)

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I guess this is not happening in the US? My Feb payment is as before.
3:48 am on Mar 28, 2005 (gmt 0)

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I am a U.S. citizen, living in the U.S., operating a California corporation with a U.S. EIN number. I will let you know when the check arrives.
3:54 am on Mar 28, 2005 (gmt 0)

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So... Adsense members are employees not contractors?!
4:09 am on Mar 28, 2005 (gmt 0)

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Also hit w/ the 27.9% withholding...

E-mailed, no response...

4:44 am on Mar 28, 2005 (gmt 0)

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Any that were hit with tax, have any irs issues? I didn't, but maybe I do now.
5:12 am on Mar 28, 2005 (gmt 0)

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Sonny - I'm super legit on the tax front, but that's the first thing I thought, yet I believe the IRS notifies you before withholding back taxes... could be wrong, but seems logical.
7:12 am on Mar 28, 2005 (gmt 0)

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Is the rate 27.9% for ALL AdSense webmasters or just the ones that hit a certain income?
8:36 am on Mar 28, 2005 (gmt 0)

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28% are extreme high taxes. I pay around 4%.

From all the turn around, there are much business expenses.

After tax declaration, about 65% are expenses and 35% income. The first 12.000 EUR are free of income tax, after this starts progression.

So I pay from my turn around only around 4% income tax.

12:57 pm on Mar 28, 2005 (gmt 0)

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Which countries are hit with the 27.9% withholding?
Is it just USA?
1:57 pm on Mar 28, 2005 (gmt 0)

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Possibly related story...

[wired.com...]

<snip>

IRS May Tax Your eBay Sales
Do you have to report the money you make from hawking stuff on eBay? It appears to depend on whether you're running a business or just cleaning out the attic, but the IRS says all income can be taxed.
</snip>

2:44 pm on Mar 28, 2005 (gmt 0)

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I checked mine and they are fine. Also a US Corp with an EIN.
2:52 pm on Mar 28, 2005 (gmt 0)

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Treo650 - As a US corportation with an EIN number you shouldn't be taxed. Did you ever submit your W-9 form to Google?
2:52 pm on Mar 28, 2005 (gmt 0)

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Pretty presumptuous of Adsense since offsetting expenses can be high, particularly with a full-fledged company with employees.
3:02 pm on Mar 28, 2005 (gmt 0)

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Zipper, I am not an accountant, so on the Tax Information page, I used the "Or, use this wizard to find the correct form:
Are you a U.S. person (for example a U.S. corporation, a U.S. partnership, a U.S. citizen or a U.S. resident alien)?" option to determine that I should submit a W-9 form (not W-8).
3:03 pm on Mar 28, 2005 (gmt 0)

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Those having tax withheld. Are you registered as a Business or Personal account?
3:24 pm on Mar 28, 2005 (gmt 0)

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I am a sole-proprietor in the U.S. and G has witheheld 27.9% of my February earnings as well.

I have no tax problems but after figuring last years taxes my wife and I decided we need to start paying a higher amount in for estimated income tax... I guess this will do the trick.

3:41 pm on Mar 28, 2005 (gmt 0)

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> I used the "Or, use this wizard to find the correct form: [...]

Yes, that's what our company did as well. That should be sufficient. We didn't have any taxes withheld.

Did you ever give AdSense your SS number? Otherwise how could they be withholding taxes...

3:49 pm on Mar 28, 2005 (gmt 0)

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I'm an idividual...

I just incorporated and got my EIN... I wonder if changing my adsense settings will affect my withholding status.

I wonder if our monthly earnings are around the same area?

4:17 pm on Mar 28, 2005 (gmt 0)

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Withholding for tax purpose is for US publishers?
4:34 pm on Mar 28, 2005 (gmt 0)

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Did anyone get tax withheld for January payment? I am still waiting for the January check, which was reissued due to mailing address issues. 28% will be a lot... Does this happen with other affiliate programs too? Is there any other company that withhold the tax for US residents?
4:38 pm on Mar 28, 2005 (gmt 0)

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I imagine the Googlers arrived at work, turned on their computers and went "whoa!" to all the emails regarding this tax thing. Probably preparing some response to this issue as we speak and we will all receive the same one.
Funny, though, it only happened to one of my accounts.
4:41 pm on Mar 28, 2005 (gmt 0)

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Those who received the tax withholding, did you submit one of the tax forms this year? Was it W-9?
4:51 pm on Mar 28, 2005 (gmt 0)

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For those who had an amount withheld from this check, does it show up on the payment history detail page?
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