Greetings forum members,

Sorry if this thread is placed in the wrong forum but I wasn't sure where it fit in.

I have been collecting income from Apple for iPhone apps that I developed since January of this year (2011). Up until today's date (October 11th, 2011) I have collected nearly $4000.00. Apple does NOT withhold taxes and therefore it is up to me to report this income. I have also come to be aware that Apple does not provide any tax forms, just sales reports, to developers.

After looking through several forums I have discovered different takes on what procedures we are supposed to follow. There appears to be two sides to the argument. The first states that we developers should report our app earnings on our regular taxes (i.e., before April 15th). These folks say these earnings should be reported on Schedule C (as a sole-proprietor business). The other camp states that developers should be paying estimated-taxes quarterly, which I think is to some degree based on making a certain amount of cash--or reaching a certain threshold per month. So, which is correct?

Are there any of you out there that have experience with this and can provide some insight?

Thanks in advance : )

“The first states that we developers should report our app earnings on our regular taxes (i.e., before April 15th). These folks say these earnings should be reported on Schedule C (as a sole-proprietor business). The other camp states that developers should be paying estimated-taxes quarterly, which I think is to some degree based on making a certain amount of cash--or reaching a certain threshold per month. So, which is correct?”----> It depends on the situation; you( you are NOT an employee of Apple) as an independent contactor, a self employer, will receive 1099MISC from Apple ; Apple issuing the form must send it out to you by the end of the day on January 31st, 2012.As Apple pays you $600 US Dollars or more as a non-employee, it is legally required to report it to the IRS, using a 1099-MISC form. For royalty income, a 1099-MISC must be generated for $10 USD or more in royalties.Then you need to report those earnings on your Sch C as long as the amount on Sch C line 31 exceeds $400 and also need to file Sch SE as long as the amount on Sch SE line 4 is $400 or exceeds $400; you need to pay your SE tax on 1040ES. The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year 2011 is 13.3% (10.4% for Social Security and 2.9% for Medicare). For self-employment income earned in 2010, the self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).For both 2010 and 2011, the first $106,800 of your combined wages, tips, and net earnings are subject to any combination of the Social Security part of self-employment tax, Social Security tax. Income you make after $106,800 will not be subject to the Social Security tax Also as you are filing as a sole proprietor and/or a self-employed individual, you generally have to make quarterly estimated tax payments if you expect to owe tax of $1,000 or more when you file your return. However, you do not have to pay estimated tax for the current year if you had no tax liability for the prior year;you were a U.S. citizen or resident for the whole year ; your prior tax year covered a 12 month period.

Thank you for sharing with us this information. Is there an income tax calculator application for the iPhone? As we all know, an income is really taxable. That is an infallible truth. All revenue a person earns should be paid or else he may end up needing cash advances to pay all those extra taxes especially if he haven't been reporting all of the revenues. Therefore, having an income calculator, a person can easily calculate his income. It will be a good intervention to monitor the taxes to be paid.
https://personalmoneynetwork.com/cash-advance/