Posts by jhunger

988 posts Go Acoustic!
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jhunger says

I noticed the same thing – haven’t had a sales reversal in a long time after a period of probably at least one a month, and I had thought maybe Envato had quietly phased them out :). Yeah, kudos to Envato for whatever they did to minimize those!

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says


I’ve accepted the fact that I’m going to probably have to claim 82.5% of total sales from my personal CodingJack account. Because claiming “12.5%” as a mysterious “business expense” is only going trigger the risk of an audit.

To be honest, we should not be accepting this. It makes no sense, we never see that money in our TF account or any other account. This cannot be the correct way to do that, and will only cause major issues with US authors.

We need further clarification on this.

Yeah, I wasn’t going to comment on this thread again, but I’m sort of obsessing on this now and couldn’t help myself. In the non-exclusive case (and I know we’re a minority) to my understanding we will have to claim 44% of the item price, or 55% of what is reported on the 1099, regardless of whether we’re elite. I absolutely must be able to deduct that extra – otherwise given the tax bracket I’m in I would actually lose money each sale I make.

One other thing I was going to mention in response to a previous post, but didn’t because I didn’t know the Reply bug workaround (thanks MVP!), is that in some cases, as Sophonic mentioned earlier, gross income does make a difference, not on the federal level but on the state level where he lives in New Hampshire.

Also! Has anyone at Envato considered that many of their US authors who make in the hundreds instead of the thousands every year may be claiming Envato income as hobby income? In that case, deductions are subject to many more restrictions than if you’re reporting on Schedule C as a small business, including a 2% floor. So, if your day job makes 50,000, and you make $2000 from AJ as a non-exclusive author, your 1099 would state $4444, making your gross income $54444. According to Envato, $2444 is the “authors fee” and is deductible, but according to the IRS you would only be able to deduct $2444 – (54444 * .2), or $1356. So you’d be on the hook to pay federal and state taxes on $1088 that you were never paid.

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

Yes, it’s not at all unusual to submit a W9 – any stock marketplaces I’m on that are US based require it, and are on the hook for reporting a 1099. True – if you’re worried about identity theft (of course a valid concern) you can get an EIN.

Again (and the more I think on this the worried-er I get) I’m a little more concerned about the 1099 reporting more than twice the income I actually make here – none of the other stock marketplaces handle it this way, and indeed I’ve never personally seen 1099s that report anything other than what has been paid to the contractor. Normally when I claim a deduction I’ve either got a receipt or I’ve sent out a 1099 for contract work done for me, and an account statement doesn’t seem to fit into either category.

Anyway, I’m just repeating myself and others – I’ll eagerly await more clarification on the process.

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

It seems to me after looking at pages 5 and 6 of this thread, if I make $100, what gets reported on the 1099 is $80, whereas the money I actually see as a non-exclusive author is $36. In previous years, if I sold $30,000 worth of tracks, I would report $10,000 to the IRS. Now, it appears that I will be reporting $24,000, and then somehow deducting 44%, or $13,200 as an expense.

This is fine, I guess, as long as Envato provides documents to back this up to the IRS. Though it makes me a little nervous to suddenly be deducting much more than I ordinarily would be for equipment, etc.

Am I completely off base here?

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

It seems to me after looking at pages 5 and 6 of this thread, if I make $100, what gets reported on the 1099 is $80, whereas the money I actually see as a non-exclusive author is $36. In previous years, if I sold $30,000 worth of tracks, I would report $10,000 to the IRS. Now, it appears that I will be reporting $24,000, and then somehow deducting 44%, or $13,200 as an expense.

This is fine, I guess, as long as Envato provides documents to back this up to the IRS. Though it makes me a little nervous to suddenly be deducting much more than I ordinarily would be for equipment, etc.

Am I completely off base here?

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

I guess I’m the only one that is actually happy to finally see this happen. For the past 2 years, I have only been able to send the IRS my PayPal statements for my taxes, but a 1099 from you guys makes me feel a lot better about not getting audited down the road because I don’t have an “official” way to verify my income. I definitely applaud this effort and look forward to a smoother 2016 tax season.

You are not the only one – I am very happy for this change. I’m on several other marketplaces that are based in the US and provide a 1099, and never really liked having to separate out my Envato income from that process. So this is very welcome.

EDIT – oops, I had only made it up to page 4 when I saw your response :P Guess in light of your latest post I should read the whole thread first :). If I read that right Envato will be reporting more than our commission on the 1099?

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

I think this question has been asked before, but it’s something I think about a lot this time of year when the G.A.S. starts to peak ahead of the holiday season. I was just curious if you set aside a certain percentage for a given year, or just buy gear as needed, or just put 100% back (or more :)) into music production gear.

For myself, I try to put about 20% back in – not only to get a lot of totally necessary gear but also to save a bit on taxes when the time comes.

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

Freaking amazing! Excellent work, soundaround!

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

1. There seems to be a wide range in Uke’s when it comes to price. Now I understand the basics of consumership and agree we get what we pay for. However, is there anything wrong with spending somewhere closer to $60-$100 for my first Uke versus the $150-$300 you and others have talked about? Is the difference in quality substantial? Here’s a few of the inexpensive models I’ve been looking at and plan on going to see again in just about an hour. http://www.guitarcenter.com/Ukuleles-Folk---Traditional-Stringed-Instruments.gc?extup=50-100&ipp=25&esid=Ukulele

I was kind of pulling $150 out of the air because I was thinking about what I paid for my first ukulele, which was a Lanikai tenor. I think that’s pretty close price estimate for a decent tenor (though I’m sure you could find one for a few bucks less). The ones you linked to were concert and soprano ukuleles mainly, which are a little smaller and typically a little less expensive. I think many would work for a first ukulele for sure – I still love my Lanikai, and use it regularly. It’s one of the best uses I ever put $150 to :) So I can vouch for the brand at least, but that said it would be best if you had a store nearby where you could strum around on a few and see what you like. Even if you don’t know how to play you’ll have some opinion of what sounds and feels better, regardless of price. I don’t think I would go much less than $60 as a general rule, since then you’d likely get into intonation and tuning problems that would plague any attempts at recording.

Definitely try playing a soprano before buying – those are very small and don’t work with my fat fingers at least. I do okay on a concert size, though.

@Leatherwing – I didn’t mean to compare a solid wood guitar with a laminate uke – of course there’s no comparison! What I was (poorly) trying to say was that as a general rule quality, playable laminate ukuleles are much cheaper than their quality, playable laminate guitar equivalents, and same with solid wood ukes vs solid wood guitars. You can get, say, a Kala all solid mahogany tenor for $260, which is an instrument that would keep you for a long long time, compared to all solid wood guitars starting at about a grand.

I definitely agree as primarily a guitar player that a guitar has greater depth, range, and can be more satisfying and versatile. However, the light, airy sound of ukuleles can border on the sublime, and I will say that there were a few “Big K” models, and even cheaper Pono models, that I’ve played in shops in Hawai’i that were just fantastic.

Oh, and I agree, the capo is your friend :)

Also, one thing that pops into my mind is that you’d need either a pickup or a mic + interface of some sort to record any stringed instrument. MusicBox, do you have a setup for that are are you purely keys at this point? Because that opens up a whole new can of worms…

988 posts Go Acoustic!
  • Has sold $125,000+ on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
  • Made it to the Authors' Hall of Fame
  • Had an item featured on Envato Market
+5 more
jhunger says

I’ll give you my two cents, and it may not be worth that much…

I agree, if you really want to learn guitar, and you’re learning ukulele in spite of disdain for the instrument, it’s best to just learn the guitar from the get go. The ukulele tuning is different and there are only 4 strings, so although there is some crossover (e.g. just learning to hold down strings on a fret with one hand while plucking or strumming with the other), there are also differences that you have to unlearn.

However, that said, here are all the reasons that I actually think you should get the ukulele first :)

1. Yes, this community has a healthy prejudice against ukuleles. To this I say an emphatic whatever. They’re beautiful instruments (if you get a real one), extremely versatile, and also so much fun to play. For that reason alone I recommend getting one. My theory is that most naysayers have never touched a good ukulele – bummer for them.

2. To get a halfway decent guitar you’re at the very least going to drop several hundred dollars, and at least a grand for solid wood. Get a cheap guitar and you’ll be discouraged because it will be difficult to play and make sound good. On the other hand you can get a very nice laminate ukulele for around $150, and solid wood models start at around $250-300.

3. Once you do reach your ultimate goal of learning guitar, an ukulele is a great compliment as a backing track. You can also play it with an ethnic kind of sound where you might use a mandolin or something.

4. Some may disagree, but I think the ramp up for learning an ukulele will be a lot shorter than for learning a guitar, or at least to the point where you can play a simple song all the way through.

Regarding hand size – there are 4 different sizes of ukulele. If you have big hands, consider a tenor. If your hands are too big for a tenor, you’ll have trouble with a guitar as well.

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