So that begs the question... how will the IRS know? I don't want to sound like I am going to cheat the system and not pay taxes.. if I ever get around to an app that makes money tho, is it any different than if I were making tips as a bartender? They are supposed to report it, although I do think that some stores report sales and from that a rough estimate of how much tips a person might make is reported. The point is, and I know this is at the discretion of each developer, but if I only make a few hundred bucks over the course of a year, it hardly seems like it's worth while for the IRS to even follow up on.. but more so, if they don't know about it at all and google/marke/paypal/whoever do not send any info at all, then well.. how many developers actually pay taxes on this money?
I suppose if you made a big app that made $10K, 50K etc or more, it might be more easily tracked. For example, you couldn't just get a google checkout check for $25K one month, put it in the bank and not raise suspicions I am guessing. I don't know what the bank limit is before the bank/IRS start asking questions if you deposit it into a bank, but if it's a small some of say a couple grand a month, well hell, I personally pay a crap load of taxes on everything these days, I don't mind not telling the IRS I made a little extra money to live on. Ideally I personally would set up a legit business and do it right but that is just me. I am guessing especially the younger crowed who may not have kids, homes, etc to lose and making a little cash on the side doing something fun might just ignore the tax thing altogether if there is no way for them to be caught. On Tue, Jan 26, 2010 at 12:10 PM, Streets Of Boston <[email protected] > wrote: > Thanks Mark. > > >"no different than any other business income"< > true, but better be safe than sorry :-) > > E.g. I sell my pictures on smugmug.com and they do send a 1099 and > report earnings to the IRS. When i wrote my question, I wondered > whether Google Checkout had a similar setup. > > > On Jan 25, 1:21 pm, Mark Murphy <[email protected]> wrote: > > Kevin Duffey wrote: > > > I asked that same thing a while ago in response to a different post, I > > > don't recall getting a clear answer to this. I would think that google > > > reports 1099 to IRS to keep track of all income you make... otherwise > > > it's tax free which seems odd to me if you make a few grand. > > > > Payment processors, as a rule, do not have to file 1099's, AFAIK. I > > don't remember getting them from Amazon, PayPal, and Google Checkout > > last year. Your income comes from consumers, not Google. > > > > You simply have to report that income as part of your taxes, no > > different than any other business income. > > > > -- > > Mark Murphy (a Commons Guy)http://commonsware.com| > http://twitter.com/commonsguy > > > > Android Development Wiki:http://wiki.andmob.org > > -- > You received this message because you are subscribed to the Google > Groups "Android Developers" group. > To post to this group, send email to [email protected] > To unsubscribe from this group, send email to > [email protected]<android-developers%[email protected]> > For more options, visit this group at > http://groups.google.com/group/android-developers?hl=en > -- You received this message because you are subscribed to the Google Groups "Android Developers" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/android-developers?hl=en
