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Google Ads Tax question
Posted by on July 2, 2020 at 7:41 pmHey, I have a client who is going to send me x amount/month to run his campaign. I’m wondering if anyone else has experience doing this? I was planning on just running it from my account.
What I’m concerned is about how I report the income as I’ll only be making a % of the spend.
What do you guys do? Or do you just use a clients account to avoid any complications?
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2 Replies
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I’m not an accountant, so don’t take this as tax advice (nor should you take any tax advice from a PPC forum on Reddit) but you will report the entire amount as income.
The ad spend will be part of your deductions.
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First, it’s generally a bad idea to pay for your clients’ direct ad spend:
1. This is a huge liability in terms of if you outlay money that they may not pay you back. As long as they pay in advance I suppose this isn’t an issue
2. This is a huge liability if the client ends up doing something against ad platform policies. Your name and credit card will be associated with those activities which could completely lock you out of advertising in the future.If you do want to do this there’s no problem with taxes. You will claim the direct ad costs as an expense against your income which will net it out.
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