question.jpgIn Federal Income Tax

Do I have to pay self-employment tax on my AdSense earnings?

If you have set up a specific business entity (e.g., a corporation or a partnership) to run and maintain your website, and Google pays your AdSense earnings to that business entity, you will not have to worry about self-employment taxes. However, if you did not set up any such business entity and are running the website on your own, you are considered a sole proprietor, which means that all of your income (including the AdSense earnings) is part of your personal tax return and potentially subject to the self-employment tax.