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"Why is the earnings figure listed in my 1099 form larger than the amount that i’ve withdrawn from Envato this year?"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This earnings figure is different to the total amount that you would have withdrawn from Envato over the course of the year, which is what you would have received after these deductions are made.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.
Is there a way to view this gross (or total) value within the statement area? Or calculate it from CSV export?
This from the Finance Folks:
The statement page shows the gross amount (Earnings). The CSV report also shows a breakdown. You just need to select the period of last year.
Sorry the only reason I ask is “Customer Fee” is mentioned in the post above. We don’t currently get access to that value, and the only $ we see in earnings/statement/css is net earnings after customer fee has been applied.
I do not think we have access to this “gross” value anywhere.
e.g. statement print out only has “net” value ( no mention of customer fee ):
And CSV file shows net earnings after the customer fee cut is taken out. No gross.
e.g. if we sell a $59 list price item, the statement shows our earnings is $47 ( the $12 customer fee has been applied, but it doesn’t say $12 or $59 anywhere so we cannot calculate gross price ) and it also shows our author fee of $5.87 - with a net earnings of $41.13. The gross earning value of $59 that includes the customer fee is not available to us.
So I guess my question is, does 1099 include the gross earning $59 list price sale? Or the second gross earning $47 value after customer fee?
This no-access-to-list-price-data thing has been going a while.
Your gross earnings is the Item Price - which does not include buyer fee, but includes author fee.
If you want to be able to reconcile the amount, please go to your statements page and select “last year” for the period. It would show your gross earnings which should reconcile to your Form 1099 and it would show your author fees for the period - which you may be able to claim as a tax deduction.
Note that when you receive your Form 1042, this would show your earnings from US buyers only. For your tax return in your own country, you may need to use this statement page.
Hope that helps!
I got it now. Gross Earnings is the $47 “Item Price” ( this is the “List Price” minus the “Customer Fee” ). The $5.87 “Author Fee” comes out of our Gross Earnings leaving the $41.13 net earnings.
We only see Gross Earnings and do not have access to any “Customer Fee” or “List Price” data.
Sorry I just got a bit confused, as the post above made me think this Gross Earnings amount included the “Customer Fee”, but it doesn’t.
Perfect! Let me know if you need further details!
I do not want Envato to Pay tax for me from this year. I will pay directly to IRS. Is that possible?
Because when I get $10, I’m paying tax for $17 which is unacceptable. So please let me pay my tax myself.
Also, When is it expected to get the Tax Document via Mail? Did you already send that for other country authors?