Hey Guys do you have to pay state taxes on the games

777ideas.com777ideas.com Member, PRO Posts: 895
edited November -1 in Working with GS (Mac)
Hey Guys, do you have to pay state taxes on the money you receive from apple.

Comments

  • butterbeanbutterbean Member Posts: 4,315
    No, Apple takes their 30% share, and you get 70% of the profit from the sale of the app.

    But you need to take the taxes out yourself, and the general rule of thumb, depending on how much you're making is 30%

    Then when tax season comes around, beginning of 2011, Apple will have your earnings statement ready to download for the year 2010, so it shows how much you earned, but you're responsible for taking out the tax money.
  • PhoticsPhotics Member Posts: 4,172
    kirk1234 said:
    Hey Guys, do you have to pay state taxes on the money you receive from apple.

    Do you mean sales tax or income tax?
  • 777ideas.com777ideas.com Member, PRO Posts: 895
    yea government taxes
  • JamesZeppelinJamesZeppelin Member Posts: 1,927
    A couple things have to be separated for taxes.

    State tax depends on your state but you do not need a sellers permit or do you need to pay state sales tax anywhere.

    You aren't selling a product.

    You are making commission and giving apple the right to sell.
  • butterbeanbutterbean Member Posts: 4,315
    So we're still responsible for federal taxes right? I think no matter what income you make, with or without a seller's permit, aren't you still responsible for paying the government taxes?
  • 777ideas.com777ideas.com Member, PRO Posts: 895
    not sure
  • JamesZeppelinJamesZeppelin Member Posts: 1,927
    Right

    We owe taxes. But there are three types

    Sales tax, apple is paying for us
    Fed income tax, we all have to pay that

    State income tax, varies per state

    California has a state income tax and an 800 flat LLC tax to top it off for those of us who go that route
  • JamesZeppelinJamesZeppelin Member Posts: 1,927
    Sorry I failed to aknowlegde what I said applies to US only
  • 777ideas.com777ideas.com Member, PRO Posts: 895
    so say if someone makes $1,000 dollars how much government taxes would that person have to pay in PA.
  • JamesZeppelinJamesZeppelin Member Posts: 1,927
    It really depends on your overall income
    With only 1k I think you can just chalk it up as additional income on the regular form.

    Your overall income determines your taxes

    If you make under certain amount you don't even need a buisiness liscense.

    I would just pop it in the online ez form at tax time.

    Masks sure to check your state for Requirements.

    Also I would double check the cutoff before needing a BL

    You don't wanna mess with that stuff.
  • BeyondtheTechBeyondtheTech Member Posts: 809
    Don't forget to counter with your expenses - GameSalad subscription, Apple Developer Program subscription, Mac hardware, electricity, office space and furniture, PDF textbooks (hint: Photics), marketing costs, etc.

    Get a good accountant and he'll itemize and balance everything out for you, but you're still likely to pay.
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