Google AdSense is seemingly reporting higher payouts to the IRS than what it actually compensated users [Update]

At the end of each year, Google mails out 1099-misc tax forms for everyone who earns money from AdSense — including to 9to5Google, just like most publications on the web. This year, though, Google is seemingly reporting incorrect amounts to the IRS than they actually paid out…

Update: Google has acknowledged the feedback from users about incorrect 1099 tax forms and will be reissuing “corrected” forms starting on January 31. If there are any other problems, Google recommends that you complete its troubleshooter which will put you in touch with one of the company’s tax specialists who will look into your issue.

Google is aware that a number of 1099 tax forms are displaying an incorrect value for the amount paid in 2017. We’re working to send corrected tax forms by January 31st so you should receive them in the mail shortly after.

As first noticed by Artem Russakovskii from AndroidPolice, the 1099-misc tax forms that Google is mailing to users right now is reporting the amount that was estimated each month, not the actual amount paid out after deducting the invalid traffic. Not only did Google not pay AdSense users that amount, but it has also already reported the higher income to the IRS.

Throughout each month, those who use AdSense can see an estimated amount that they make in a single day and over the period of a month. At the end of every month, Google deducts a certain amount from that estimate based on something it calls “invalid traffic.” In many cases, this is money (not) earned via bots visiting the site or spam accounts clicking on ads.

A discussion has already been created in the AdSense Help Forums with numerous users complaining about the incorrect 1099-misc forms. If you see a discrepancy on your tax forms, you should head on over to the post and add your name to the list. Hopefully, Google fixes this issue and mails out corrected documents.

Google completely messed up @AdSense 1099-MISC for 2017 by reporting to the IRS a higher amount than it paid out.

Turns out they didn't just follow actual payments. Instead, they followed earnings reports but didn't subtract invalid traffic adjustments (which were 4.1% for us).

— Artem Russakovskii (@ArtemR) January 24, 2018

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