Do I need a tax id # for my blog?

Question

Hi,

Me and my bestfriend have an entertainment blog and we don't know if we need a tax id #. We have a google ad sense account and they're holiding our payment because we didn't put a tax id #. It did say we can put a social security # but there is no way for both of us to put our SSN # in. So do we need to apply for a tax id # to get our google money? Any help would be appreciated. Thanks

Answer 1

One of you gets to be the nominee to the other.

The nominee gives Google their SSN.

At the end of the year, Google issues them a 1099-Misc.  That person reports the income on a 1040 schedule C, deducts the 1/2 that belongs to the other person and, in turn, issues them a 1099-Misc for their half.  The 1099-Misc must be given to the friend by 1/31 and the government copy has to be turned in by 2/28.

Fortunately, you don't have to do the 1099-Misc forms if the amounts are less than $600--but whether it's $600 or $1, you stil have to report the income.

Answer 2

In theory, you should register a partnership, which would then have a tax ID number.  However, it may not be worth the trouble.

The method "v b" describes should work; you report one of your SSN's to Google (preferably the person doing most of the work).  On your respective tax returns, the person whose SSN appears writes off half the amount (and issues a nominee 1099-MISC) to the other person, and you both report the amount on your respective tax returns.  This nominee 1099-MISC is required even if Google doesn't send you a 1099, because the amount is less than $600.  (I'm not quite sure why.)