In the past we have not gotten a 1099 form from Envato. The money still has to be declared as hobby or business income, depending on how you’re reporting, but you don’t have an official tax document. This will be the same for this year – you will not get a 1099 from Envato for 2014 earnings.
It’s possible that for the 2015 tax year and beyond we may see a 1099 from Envato. A few months ago they made the announcement that they would be doing so, but have delayed 1099 reporting until further notice because of complications that arose around the “Author’s Fee” (and possibly other issues for all I know). As far as I know they have not come back with more information after that, but I assume at some point they will be sending 1099s so us. Whether any 2015 earnings will be reported I don’t know, and also it’s not yet determined as far as I know whether they’re also going to reporting the “Author’s Fee” as well as what you actually get paid.
Acoustic guitar is tough too!! The room has more of an impact on an acoustic….The cab sounds good, but the amp in that track is the star. It’s an Oldfield Marquis 36. It gives me every British voice I could want and also has it’s own thing that is pretty amazing… I also record with vintage Silvertone’s, and occasionally use amp sims. My pre helps out too! It’s fun to geek out on this stuff… I like to go all out with searching for guitar sounds!
The ribbon I am using is an old Cascade Fathead 2. with the Lundahl transformer. Mine is from the very first batch ever sold by them. I mostly like it. It can tend to smear the bass a bit when super close to a loud amp, but I just move it back to accommodate. It also has a low output, but that is insignificant to the loud source. For the price, it is hard to beat! Almost all of the electric stuff in my portfolio is recorded with that mic. The cab and mic rarely move.
Yeah, I’m unfortunately quite familiar with the room having an impact . I’m in a better space now, but still sub-optimal, and I think that’s my major hurdle at this point.
I have a Fathead 2, actually from a recommendation on an AJ forum post a while back, and I think it’s impressive for the price. It’s the stock transformer though – would be interesting to try with the Lundahl. I came very close to giving into buying a pair with the Lundahl upgrade and a Blumlein bar on sale for $649 last month, but largely because the Blumlein configuration relies on the room being decent I decided to hold off. Suppose I need to better learn to optimize the gear I’ve got first anyway
OK… If anyone is still following along… I tried my best to emulate this tone… It’s on my latest upload… I don’t want to break rules by posting a link, but this is close to my ears…
This is a dual hum bucker guitar (vintage Gibson) with a compressor pedal into a clean boutique amp… The mic is a ribbon mic on a closed back cab into a vintage API pre. There is some post processing involved… mainly EQ and a reverb.The original sound could very well be a tele in the middle position as well… Hope that is helpful!! Getting good guitar sounds can be very difficult! There are so many factors…
Sorry sorry sorry – I promised myself I wouldn’t geek out, but what ribbon mic are you using, and what do you think of it?
Sheesh, you’re telling me that recording guitar is difficult. I have a hard enough time with acoustics, and there aren’t even any pickups or amps involved.
So yeah, there’s a lot of nervousness there. I can’t say that I’m going to leave AudioJungle fully, but I’m in the process of removing items from my exclusive account and two others (these were from a long time ago and aren’t really performing anyway), and am talking with my collaborator on another one to decide whether to call it quits there as well. My main account I’m going to leave open for now, though.
BTW, in case anybody’s reading this and thinking “OMG I should delete my profile!!!” I should clarify that there are multiple reasons for me wanting to close accounts outside of my main one. For me it’s an overall shift of focus and strategy, namely around the sanity perspective of maintaining one account and also making some of my work available for PRO submission. The tax issue is just one small input that’s spurring me to move the songs off sooner rather than later.
Ultimately I believe that it’s a good sign that Envato is taking more time with the US reporting issue, and hopefully once they have the input they need they’ll make the right decisions around it.
I have my gripes from time to time, and am worried about recent developments on the tax reporting side, but I absolutely continue to love the Jungle as well. I’ve met a ton of great people up here and have been awed at both the talent of the authors and also of the way the staff has grown (and continues to grow) into a mature marketplace.
Congratulations, Matthew – living the dream
Hello fellow Americans,
I know this information might be buried somewhere in the many threads that have been locked, but I want to ask while the asking is good…
With regards to Envato’s new US tax policy; I know that we aren’t being issued a 1099 for tax year 2014, so therefore I won’t be reporting my 2014 income as the full “item price” which includes the new “author fee.” I’ll just be reporting what I always have, my yearly total of PayPal deposits from Envato. Is everyone doing the same thing?
As for 2015, I’m not sure if it’s been settled…will the new policy be implemented in tax year 2015? I read at some point that it was on hold while everything is investigated further.
Considering how the new policy might affect the my tax bracket, I’m thinking about leaving AJ. But that’s only because I’m not sure how the “author fee” will be deductible as an expense. Is it really possible that a large amount of “income” we don’t actually receive can be deducted as “negative income” and/or an expense?
Argh, I wish I could gain some clarity on this. I love AJ, the community especially. I don’t want to leave, but I feel like there is something off about this new policy.Thanks in advance for any advice!
The last thing I heard on the US reporting was that they had originally intended to start tracking in 2015, but had delayed it until some unspecified date because they needed to more fully research the ramifications. Unfortunately VAT concerns drowned out the US concerns at that point (understandably), but I’m still waiting on pins and needles for some news on the US part of things. I would hope that at least it would be delayed until 2016.
I’m not really sure about deducting the so-called “Author Fee” either, and I’m especially concerned as a non-exclusive author that it will be an awful lot to deduct as a percentage of the reported price. Envato has promised documents to back these things but as far as I know they haven’t made the format public. So yeah, there’s a lot of nervousness there. I can’t say that I’m going to leave AudioJungle fully, but I’m in the process of removing items from my exclusive account and two others (these were from a long time ago and aren’t really performing anyway), and am talking with my collaborator on another one to decide whether to call it quits there as well. My main account I’m going to leave open for now, though.
Like you, for 2014 I plan on reporting the total dollar amount that Envato paid me, as I have every year since 2009, and do for every other marketplace I’m selling songs with.
Since I am just starting in this business, I am very new to how the taxes work. My wife is also starting her own online business and we both have spent more money on starting up our businesses last year than we received in actual earnings. So, doesn’t that actually lesson our tax burden and help lower our taxes? If everything goes to plan, this year we will actually be making more than we spend.
Yep, everything you can legally write off will lessen the tax burden, and I think there’s some expectation that especially start up businesses will spend more than they bring in during some tax years. Just make sure you’re profitable 3 out of 5 years or else the IRS may become interested in you .
So difficult)Do you like this system?
That made me laugh ! I don’t think I have ever heard anybody at least in the U.S. say, “I love taxes! I can’t wait until April so I can pay more!”
That said, the quality of my daily life is directly impacted by things like food safety, public security, well maintained roads, utilities, etc. etc. etc. Although there are certain things I’d prefer my state and federal government would spend less or more on, and it’s not perfect by any means, overall it’s a pretty good deal.
That depends on a huge number of variables, how you’re reporting, how much you’ve made, where you live, etc.
For myself, I have a day job as well as stock income, which puts me into a higher tax bracket than if I were doing stock income alone. I also live in Oregon, which tacks on 9% on top of the federal tax, and also in my district there is a metro tax which is another small percentage. If I lived down the street in Multnomah County, I would owe yet another local tax. There’s also property tax that I owe because I own a house, and these vary from district to district as well.
At the federal level there are other payroll taxes that I’m subject to for my day job, whereas there’s self employment tax for the income I report on Schedule C. However, I can write off certain things (equipment for my music business, mortgage interest for the house, any money I put in a 401(k) or traditional IRA, and so on).
At a pretty gross estimate, I would say that for my music income I’m paying around 35-40% in taxes. But again, that’s mainly because the income from my day job propels all my music earnings into a higher tax bracket. If my only income were stock music, I’d be paying far less of a percentage of it.