So I've been selling a few themes through mobihand for a few months. Made only about 150-200$. They just sent me a 1099-MISC Form and the 150-200$ was listed as "royalties". What exactly am I supposed to do with this?? Surely I dont have to file a tax return. I'm not employed as Im just finishing up university. I was a bit hesitant when i signed up as I had to provide by SSN and etc. Any help?
you dont have to claim anything less than $600 - but i believe also that since you are a student, you can claim exempt? not sure of that... but 99% sure of the <$600.
It should be reported as a Schedule C IF your TOTAL income meet the federal requirements for having to report income.
acmlt30, you state you are unemployed so if you had no other income, you probably dont have to report it. BUT if you have worked in the tax year and have to report other income, you will need to report the Royalties as income on a Schedule C.
StaticFX you are correct in the under $600 rule, but that only applies if you have no other income to report. If you have to report any income, you have to report it all. However, you can also claim it as a business deduct all valid expenses, internet, webhosting, computers used for the "business", advertising, losses in refunds, ect....
