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I was aware of this personally, you have to file as self-employed and pay a huge tax, doesn't matter how little you make. It's all part of that whole "helping small businesses" our government talks so much about! - ChrisFirst the warning: If you have a Web site, and you ever put Google ads on it, and you ever made a penny off those ads, congratulations! The Internal Revenue Service owns you.
According to the IRS you are a private contractor employed by Google; you are a business; and you will have to pay business taxes and the rates that go along with them. Doesn't matter how big you are, how long ago you put those ads there, or whether you made $20 or $20,000 off them.