What Do I Tell The Government About Envatos " Withdrawal Holding"?

Envato Authors Author Hangout
1

Howdy

So filing our taxes. Now I had previous posts about this which doesnt make much sense but im really trying to.
Envato takes out a “cut” of my affiliate earnings and than what happens to that money?

For example, I make 3,000 a year in commission with $1200 as “backup holdings”, what do i tell the IRS? " envato is gonna send over cash when they get to it"

Can somone clarify where the tax holding goes? I have write offs for that tax money so why isnt it just paid to affiliate in full? What proof do i have that envato sends it? When does envato send it?

2

You’ll get a form detailing all the taxes withheld. Mines a 1042-S I believe… yours will probably be something different if you’re US based. So you’ll detail the taxes withheld on your tax return and you’ll have the documentation to back that up. They’re usually sent out this month.

As for when Envato ‘send over the cash’, I’d guess at quarterly. Could be annually though, and monthly is unlikely.

3

You shouldn’t be having your taxes withheld to the IRS if you’re based in the US… Did you not fill out your form W-9? You can do so in your settings.

I’m not sure if affiliates get a form 1099 but we authors were sent them early in the new year. That of course should detail both income and withheld taxes so you can claim it back.

Look here:

4

Howdy

I filled out the info. Just waiting on envato now, thanks for clarifying!

5

hey guys, can you solve one more question, if i change my user name, do all my affiliate links with the old user name become invalid? or do i have to update all my envato affiliate links?

6

You’ll need to update all of your affiliate links with the new name, per support:

Note: If you’re using our affiliate program, please remember to update your referral links with your new username.

7

Hey @darrel03,
It’s probably best to email the affiliates team directly so we can discuss these points directly. Please feel free to email us on Emile.ben-atar@envato.com.

All the feedback you have received thus far on this is correct but would be prudent to discuss this directly with us to reduce any risk of confusion.
Thanks
Emile