Sunday, January 17, 2010

Google AdWords $100 Coupons: Not Taxable Income


I have just received a free $100 coupon from Google to use their AdWords program.

You can use it to establish an ad campaign and are charged per click. Using their offer provide a free $100 worth of Adords before you start getting charged. Do I have to report this as income if I use it?

If so, please explain.

Your book Self-employed Tax Solutions has been very helpful.


Hi Lou,

Thanks. Glad my book is a help.

No, a coupon or any kind of discount is not taxable income. And neither is it a business expense deduction.

For instance, if you buy $150 from Office Depot and use a 10% discount coupon you may deduct only the amount you actually paid as office supplies expense. In this instance it's $135 [150 - 15 = 135].

Same with the Google AdWords coupon.

And do remember that your income from Google AdWords is taxable income.



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