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Then Apple is your distributor, not your employer.
by Tijdreiziger 9y ago
Then Apple is your distributor, not your employer.
- scarface74 9y agoThe IRS requires Apple to send them and you a form 1099K - What does my Form 1099-K report to me? A Form 1099-K includes the gross amount of all reportable payment transactions. You will receive a Form 1099-K from each payment settlement entity from which you received payments in settlement of reportable payment transactions. A reportable payment transaction is defined as a payment card transaction or a third party network transaction. https://www.irs.gov/businesses/understanding-your-1099-k https://www.irs.gov/businesses/understanding-your-1099-k I’m sure other countries require something similar. Either way, they need either Your SSN or your TIN to report it.
- Tijdreiziger 9y agoYes, because you still need to pay income tax over money you earn, whether an employer paid you or you are independently doing business transactions (i.e. you are self-employed). The page you linked even says "It is important that your business books and records reflect your business income, including any amounts that may be reported on Form 1099-K." Another way to think about it: If Apple were your employer, you'd have to fill out a timesheet and they'd have to pay you at least minimum wage. That's not the case; if your app sells 0 copies, Apple will pay you exactly nothing, regardless of how many hours you spent making the app.