Hey folks, following the distribution of the 1099 forms, we’ve been getting a frequently asked question.
"Why is the earnings figure listed in my 1099 form larger than the amount that i’ve withdrawn from Envato this year?"
Here’s your answer:
The “earnings” amount displayed on your Form 1099 is your gross (or total) income from January 2016 to December 2016. This is the total revenue you received over the course of the year through Envato before we make deductions from Envato service charges and taxes.
These charges are:
- Any taxes
- Author fee
- Customer fee
This earnings figure is different to the total amount that you would have withdrawn from Envato over the course of the year, which is what you would have received after these deductions are made.
Keep in mind, when you prepare your tax return you may be able to claim a tax deduction for the author fee charges. We suggest you speak to your tax adviser / accountant if you need further assistance.