# confusion with US TAX withholding please clarify?

I have one item with codecanyon, but from JAN 1 2016 US TAX withholding applied to only my US sales i think 30%.

My Item price is 19 author level 5 so i got 10.45 for each sales but when it comes to US i have received only 5.89. instead of 7.315 what happened?

Item price : 19/2=9.5
5th level 0.19*5 = 0.95
Final: 9.50+0.95= 10.45

30% withholding : 3.135
10.45 - 3.135 = 7.315

\$1.425 missing???

But i get only: 5.89

30% comes from the original item price I.e. 19 that should bring numbers closer?

The 30% is taken from the item price rather than the list price, this is how the calculation goes:

List price = \$19
Item price = list price - 20% (buyers fee to Envato) = \$19 * 80% = \$15.2
Now calculate the 30% from the item price = \$15.2 * 30% = \$4.56 (to the IRS)
Envato take 31.25% from the item price as author fee = \$15.2 * 31.25% = \$4.75 (to Envato)
Your net earnings = \$15.2 - (\$4.56 + \$4.75) = \$5.89

Thanks for the quick reply and now i understand the reason.