So I’m doing my taxes, do I get a 1099 or W-2 from Audiojungle?
Can you tell me how am I suppose to report my income then? Is this a grey area?
Search the forums. There are quite a few threads. Here’s the most recent one:http://audiojungle.net/forums/thread/american-authors-its-tax-season/84716
Just report your income based on your monthly withdrawals. For example, if you’re using PayPal, that makes things easy as you have a list of each monthly withdrawal. You don’t need anything special from Envato.
Also, Brandon has some good advice here.
Hope that helps
P.S. Of course you should consult a tax professional if you have any questions on specifics. I don’t think either Phil or I are CPAs
Envato is based outside the US so they are not required to send you a 1099 form. The W2 is only for employees so its not applicable.
However, you are required to report your earnings user form Schedule C – as sole proprietorship income. IRS does monitor PayPal accounts as they can be associated with SSN now.