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What is estimated tax and Why it's so high?!

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hello,

 

I have a question about estimated tax. Why we have to pay estimated tax and what is ti?

 

Probably my biggest question is why my estimated tax is 3 times higher that actual advertising costs???!

 

Foe example, i spend $2.50 on advertising but my estimated tax is $7.

 

Why is that?

 

Thanks,

Miro

Re: What is estimated tax and Why it's so high?!

Collaborator ✭ ✭ ✭
# 2
Collaborator ✭ ✭ ✭

Hello Miro L !

 

If your tax is 20% and you charged your account with 35 $ , this means that taxes for your paid amount is 7 $.

This does leave you with 35-7= 28 $ to spend in advertising. Take a look at your billing and see what amount it is in the "Balance" column.

 

This tax is applied for every payment, and rules are different from country to country.

 

Please do a research on taxes if you want, using this help page

 

https://support.google.com/adwords/topic/15973?rd=1