Agency Based Discussion > Envato

Another Envato Tax question....

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Gel-O Shooter:
Doing my 2016 taxes. :(  I got a 10-99 from Envato saying I made $16 in royalties.  I cancelled my account before I ever got a payoff just to avoid tax problems.  So do I really have to pay taxes on $16 that I never received and never will, which was in effect, a gift to them?  >:(

Chichikov:
Denounce them to the tax office for fraud!

Noedelhap:

--- Quote from: Gel-O Shooter on March 28, 2017, 09:20 ---Doing my 2016 taxes. :(  I got a 10-99 from Envato saying I made $16 in royalties.  I cancelled my account before I ever got a payoff just to avoid tax problems.  So do I really have to pay taxes on $16 that I never received and never will, which was in effect, a gift to them?  >:(

--- End quote ---

You did earn it, just because they hold onto it doesn't mean it's not your money. So yes, that $16 belongs to your taxable income.

Although I pay income tax on sales revenue after it appears in my bank account, because with some agencies it's impossible to track the actual transaction date.
Not sure if that's the correct way to do it, but it prevents me from paying "virtual" taxes.

Gel-O Shooter:

--- Quote from: Chichikov on March 28, 2017, 10:10 ---Denounce them to the tax office for fraud!

--- End quote ---

I think I will. 

My love note to Envato:

"You sent me 10-99 saying that you paid me $16.00 in 2016.  That is not true.  I closed my account before I was ever paid anything by you.  Since you kept $16.00, which I'm sure you didn't pay taxes on (since you shifted the tax burden to me), that would probably be considered tax evasion on your part under US law.
So you can either pay me the $16 or I will be reporting you to the IRS for US tax evasion.
Your choice"

To anyone from Envato reading this:  I'm not kidding, I've already downloaded the form from IRS.gov.

sgoodwin4813:
Envato and FT both provide the amount earned during a calendar year to the IRS, regardless of whether it was paid (like all the other agencies do).  Very annoying.  For Envato that is the total sales price not the amount you earned - you need to deduct their seller fees off as a cost.

Since they reported the amount to the IRS I would include it in your income just to avoid any possible hassles.  However, once you deduct off the 60% or whatever it is they keep it isn't going to add a lot to your taxes.

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