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  1. #1
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    Does the 1099 form report commissions EARNED or PAID?
    I want to defer all 2010 Google AdSense income to 2011.
    I am thinking of selecting "hold payment" in the account preferences throughout 2010, then releasing the payment in 2011. If I do that, will Google still issue me a 1099 in 2010?

    In other words, does the 1099 report the income that I earned, or the income that I was actually paid?

    Thanks!

  2. #2
    Moderator MichaelColey's Avatar
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    The 1099 reports paid earnings.

    To defer income, I'm pretty sure you have to be a sole proprietor doing your accounting on a cash basis. If you're doing accrual basis or are a corporation, you're still going to owe taxes on it in the year it was earned.

    Talk with your accountant to be sure, though.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  3. #3
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    Quote Originally Posted by MichaelColey
    The 1099 reports paid earnings.

    To defer income, I'm pretty sure you have to be a sole proprietor doing your accounting on a cash basis. If you're doing accrual basis or are a corporation, you're still going to owe taxes on it in the year it was earned.

    Talk with your accountant to be sure, though.
    Thanks. So basically if I know that my tax bracket in 2011 will drop compared to 2010, and I have enough savings to live on, it's a no-brainer.

    In addition to AdSense, I noticed that CJ also supports a "minimum payment amount" option. If I set it high enough, then again - no payments from CJ for 2010. Couldn't find a similar option for LinkShare.

    The only risk is CJ going under in 2010...

  4. #4
    Moderator MichaelColey's Avatar
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    LinkShare does have a payment threshold that you can configure. I'm not sure where to find it now that they've redesigned the site.
    Quote Originally Posted by Sleepless
    The only risk is CJ going under in 2010...
    Or taxes being raised in 2011.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  5. #5
    Manager - Affiliate Marketing Patrick Vesperman's Avatar
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    Quote Originally Posted by Sleepless
    Thanks. So basically if I know that my tax bracket in 2011 will drop compared to 2010, and I have enough savings to live on, it's a no-brainer.
    Unless you think you could get a better return investing it. I wouldn't recommend the money market

  6. #6
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    Sleepless,

    It's better to take your money now, pay taxes on it, and get it working for you in your business. Worse case spend a little more on advertising before year end to lower your tax basis -- either way, taxes are likely higher in 2011.

    Best,

    Justin
    [i]Always interested in great B2B affiliate programs that serve Sales and Marketing professionals. Private message if you have something.[/i]

  7. #7
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    Thanks for all the replies. I'm relocating to a locale with significantly lower taxes. So while 2011 tax rates are destined to increase (but apparently only the top two tiers - from 33% to 36% and from 35% to 39.6. Sadly this does not affect me), the bottom line shows a reduced tax liability if I shift income to 2011.

  8. #8
    CPA Network Rep Essociate's Avatar
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    trusting Google to be your bank seems risky, even though they are not going out of biz anytime soon.
    [URL]http://Essociate.com[/URL]

  9. #9
    Full Member WildAmbitions's Avatar
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    Quote Originally Posted by Sleepless View Post

    The only risk is CJ going under in 2010...
    Not to hijack a thread, but... Is this a legitimate concern to be having? I am not questioning your concern just a concern in general as to this occurring.

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