Taxes and hiring help..

I think we can cut the 50% from the revenue and mark it as Royalties payment and only record the other 50% as profit. You should consult a professional on this!

 

Apple isn't going to send you any tax forms. You will need to figure out taxes on your own.

And yes, business expenses are tax-deductible, and paying your artist is a business expense. You really should consult with an accountant just to make sure you're doing everything right.

 

Yes, that sounds more like it. WHEN do they pay you though? In April, I earned over $250 in the US, so how long does it take for a monthly sales report in iTunes connect/a check to appear?


Thanks!

 

According to your contract, they have 45 days after the end of the month to pay you. You should expect a financial report at the end of May/beginning of June, and payment in the beginning/middle of June.

 

My b-day is June 3rd, so it sounds like I may get a nice present. A REALLY nice present. In fact, I should buy a car


Thank you!

BTW: A VERY reliable source informed that they have recieved there April check, but no t the report. So apparently they come early sometimes.

 

That's so funny! July 3 is also Keith's birthday (my husband/Imangi Studios guru)! Hopefully we'll get a nice present too.

Are you sure your source got their April check, and not their March check? Everyone is receiving their March checks right now.

 

I need to learn how to read... You said JUNE 3, not JULY 3 Yes, hope you get a great present then.

 

It might have been a mistake, I don't know. Well, I guess I will have to wait. Every time I want to check my bank account, I have to ask my mom to check it The monthly sales report (in iTunes connect) should show around the same time that the moneys arrives, correct?

Yes, my birthday is June 3rd. My sisters is July 19th. I am sure that I will get a MUCH bigger present from my Grandpa than from the Apple, but it will be nice to have my work pay off.


Best wishes!

Robert
CEO, App Tech Studios

 

I'm not a CPA and have no professional training in accounting, but I think I can tell you what you want to know.

First, W2s are only for employees. If Apple were to send you a form, it'd be a 1099, but they have not been sending those so far. Either way, you claim this income on 1040 Schedule C (self-employment). There, you can deduct any expenses (including hired help), and only the profit gets carried over to your income tax return.

If you're the one paying half to the other guy, make sure he fills out a Form W9 (http://www.irs.gov/pub/irs-pdf/fw9.pdf) and gives it to you. Depending on how much he makes, you may need to issue him a 1099 and you'll need his taxpayer ID (usually SSN) for that... if you don't do that, and he doesn't include that money on his tax return, then you could be on the hook!

You may be able to form a partnership or LLC; whether this is simple or difficult, cheap or expense, depends on the state you're in.

 

Does that mean that mean that I can get an iMac and deduct it off of mine (well, my dads) taxes?

 

I believe if most of the iMac's use is for business. (If it's your only computer, the IRS will assume it's primarily for personal use.) Note that you might be limited to deducting up to the amount you made, I don't remember the precise rules on this.

Also, who is the dev, you or your dad, or both of you? FYI, you might get a lower rate if you filed yourself rather than having him include it.

 

I am the dev. My can't program, he is a manager for a cool company. I also have a macbook aluminum, so it isn't my only computer. I will only buy it after I earn the money to get it (my dad tells me that it is important that I save and earn some money and I agree), so it will be less the amount that I earn.


Thanks!