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How to file a tax return when you open a Google Adsense for family

4:14 am on Apr 6, 2012 (gmt 0)

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Hello all,

I had opened a Google Adsense account for my father who does not earn any income or pay taxes here in the US. He currently lives abroad.

He received a 1099-Misc from Google in the amount of ~$9,400.
He transferred all the income to me so obviously I reported that as my Google income and paid the tax on it. Although I never mentioned anything about my father and simply stated Other income in the same amount of $9400.

My father hasn't filed for tax past couple years, but since this year he had a small earning does he have to file a 1099 Misc stating that his gross income was still $0 and that he paid me the full amount?

How does this work (for those who have opened additional adsense accounts)

in Short:
- I filed my tax already and reported my income as Others in the full amount of $9,400.
- my father hasn't filed a tax return and basically doesn't want to file again this year and only wants to report that his income was basically $0 since I earned all the adsense money under his name.

What I was told is:
- He needs to only file a 1099 Misc Income, stating in box #3 the total amount he received from Adsense
- Add my info/name as Recipient.

Is this correct? Is the 1099 Misc the only form he needs to send in, since he doesnt have a W2 or any other sort of income?

I would greatly appreciate your immediate help.

Thank you,
12:32 pm on Apr 6, 2012 (gmt 0)


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You need to hire/pay a CPA who regularly works with businesses. Tax issues, like legal issues, can be complex. No surprise. Taxes are based upon laws, regs, judicial interpretations and a lot of shoddy legislation. There's the tax code, tax regulations that interpret/apply the code, revenue rulings that interpret the code and regs where there's uncertainty, and private letter rulings that are binding only to the direct party but possibly informative as to others.

You're in the gray zone. I can spot several issues, ones you probably aren't even aware of. A well researched and reasoned opinion from a CPA may save you - and your father/parents - later grief.

Spend the money AND get guidance about how to handle this in the future. The folks at the big tax return processing companies aren't your resource for addressing this as the issues are above the pay grade for the level of training/education of most of their processors.
9:26 pm on Apr 11, 2012 (gmt 0)

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votes: 1

I agree about spending a few dollars to get an expert opinion. On the surface of it, you have a problem, or rather your father does. You can't, as far as I know, "transfer" money TO someone as was tried here. It's HIS revenue, and so it has to be reported by HIM. He can offset that by "paying" you the money, but then it's an expense, but it all has to be filed.

The end result is the same: He doesn't pay tax on it, and you do, but it has to be "accounted for" properly. But I'm not an expert, and probably not even in the same country as you.
9:59 pm on Apr 11, 2012 (gmt 0)

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Just a suggestion:

If he lives abroad, he can open a bank account there and receive the adsense earnings, then send it to you. Then you really will be in the gray zone; everything's legal and you don't pay taxes. ;)