Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 10-11-2011, 03:23 AM
Junior Member
 
Join Date: Oct 2011
Posts: 1
iPhone app income and taxes - new developer

Greetings forum members,

Sorry if this thread is placed in the wrong forum but I wasn't sure where it fit in.

I have been collecting income from Apple for iPhone apps that I developed since January of this year (2011). Up until today's date (October 11th, 2011) I have collected nearly $4000.00. Apple does NOT withhold taxes and therefore it is up to me to report this income. I have also come to be aware that Apple does not provide any tax forms, just sales reports, to developers.

After looking through several forums I have discovered different takes on what procedures we are supposed to follow. There appears to be two sides to the argument. The first states that we developers should report our app earnings on our regular taxes (i.e., before April 15th). These folks say these earnings should be reported on Schedule C (as a sole-proprietor business). The other camp states that developers should be paying estimated-taxes quarterly, which I think is to some degree based on making a certain amount of cash--or reaching a certain threshold per month. So, which is correct?

Are there any of you out there that have experience with this and can provide some insight?

Thanks in advance : )



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 10-15-2011, 02:49 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“The first states that we developers should report our app earnings on our regular taxes (i.e., before April 15th). These folks say these earnings should be reported on Schedule C (as a sole-proprietor business). The other camp states that developers should be paying estimated-taxes quarterly, which I think is to some degree based on making a certain amount of cash--or reaching a certain threshold per month. So, which is correct?”----> It depends on the situation; you( you are NOT an employee of Apple) as an independent contactor, a self employer, will receive 1099MISC from Apple ; Apple issuing the form must send it out to you by the end of the day on January 31st, 2012.As Apple pays you $600 US Dollars or more as a non-employee, it is legally required to report it to the IRS, using a 1099-MISC form. For royalty income, a 1099-MISC must be generated for $10 USD or more in royalties.Then you need to report those earnings on your Sch C as long as the amount on Sch C line 31 exceeds $400 and also need to file Sch SE as long as the amount on Sch SE line 4 is $400 or exceeds $400; you need to pay your SE tax on 1040ES. The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3% (10.4% for Social Security and 2.9% for Medicare). For self-employment income earned in 2010, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).For both 2010 and 2011, the first $106,800 of your combined wages, tips, and net earnings are subject to any combination of the Social Security part of self-employment tax, Social Security tax. Income you make after $106,800 will not be subject to the Social Security tax Also as you are filing as a sole proprietor and/or a self-employed individual, you generally have to make quarterly estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. However, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year;you were a U.S. citizen or resident for the whole year ; your prior tax year covered a 12 month period.


Last edited by Wnhough : 10-15-2011 at 02:51 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 12-12-2011, 04:59 AM
Junior Member
 
Join Date: Dec 2011
Posts: 1
Thank you for sharing with us this information. Is there an income tax calculator application for the iPhone? As we all know, an income is really taxable. That is an infallible truth. All revenue a person earns should be paid or else he may end up needing cash advances to pay all those extra taxes especially if he haven't been reporting all of the revenues. Therefore, having an income calculator, a person can easily calculate his income. It will be a good intervention to monitor the taxes to be paid.
https://personalmoneynetwork.com/cash-advance/



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
IRS Launches the IRS2Go App for iPhone, Android; Taxpayers Can Check Refunds, Get Tax Information TaxGuru For 2010 1 10-12-2011 09:23 AM
F1 student & income from selling iPhone apps ozery Income 1 03-10-2011 02:17 AM
IRS Launches the IRS2Go App for iPhone, Android; Taxpayers Can Check Refunds, Get Tax Information Samatg For 2010 0 01-25-2011 04:17 PM
Condominium Deposit Loss due to Developer Fraud - How to treat the loss on taxes? Betico Itemized Deductions 0 09-08-2010 02:05 PM
Do I have to pay taxes on income I earned outside Arizona State? TaxGuru Arizona 0 10-05-2008 11:01 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.