Posts by Sophonic

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
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Sophonic
says




In the US, if Envato builds good tools for reporting, the impact of this change is small. I don’t have a problem reporting total earnings and taking the author fee as a deductible expense. My tax liability is identical to simply reporting earnings.
This isn’t exactly true. If Envato is now reporting your total earnings PLUS their “fee”, then your lax liability is now greater and could potentially put you in a higher tax bracket, which would obviously cause you to pay more in taxes, even though your actual income has not changed.
Your tax bracket is determined by gross adjusted income (i.e. taxable income) not reported revenue. If you deduct the fees and report the full sale amount, then your tax liability is identical to reporting earnings only.

I corrected myself in an earlier post, but I realize that your taxable income is calculated after your deductions. Essentially, in order to arrive at your actual taxable income, you would need to deduct “expenses” that you never paid from the income you never received. It’s an unnecessary step that is being added presumably to save Envato time and/or money, at the expense of its authors. You should not need to even deduct these expenses in the first place in order to arrive at your actual taxable income. As authors, we have no actual expenses to Envato, regardless of what they are saying.

Not only that, but given that PayPal and Envato will both be reporting different figures, that will cause more issues than its worth.

These are my main concerns as well. Another thing is in the USA some states such as mine don’t charge state income tax until a certain level of GROSS income is reached again thats GROSS, deductions and net don’t matter, therefore they are putting me and others at an unnecessary and real risk of hitting this threshold and causing a world of hurt and lots of extra work for nothing.

Another real issue is some people with kids have help from their state gov for their Kids health insurance, you have to have a certain level of income to get assistance and when you fill out the applications they always go by Gross as well. This might be the scariest impact of this situation.

I could care less about the reporting thing but they have to accurately report to the IRS, as of right now they would be forcing me to lie to the IRS about my income if they reported a penny more then what I am paid out on every 15th of the month. Could look like I am trying to commit fraud and beef up my income to get a home loan or something.

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

Is there any Audiojungle Licence that protects buyers from Content ID match claims.

Yes, the license you get when you purchase the song here. Just click on claim and copy paste license text and its cleared. Real easy, takes seconds.

I guess my use of the word protect was a bit vague… so let me try again ;).

What I’m really trying to find out is whether any of the licences prevents the use of content ID matching services so that buyers never actually receive any claims – in other words a limit is placed on the copyright owner so that they no longer have recourse to content matching services.

reply seems to not be working right my reply below*

With adrev you can whitelist a users YouTube channel for use and future uploads so they won’t get anymore claims but that would have to be done manually for customer. Audiojungle does not have a license option to avoid a claim check.

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says


Yes. http://audiojungle.net/forums/thread/adrevnet-really-rocks-/120262

Thanks.

Is there any Audiojungle Licence that protects buyers from Content ID match claims.

Yes, the license you get when you purchase the song here. Just click on claim and copy paste license text and its cleared. Real easy, takes seconds.

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

Does this mean we will now be getting instant payments into our Paypal or like payment service accounts upon each and every sale for the total list price? Will we be billed each month by Envato for their fee?

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

No they won’t do that for you, you have to set aside some cash if you plan to owe taxes. The first year after actually owing taxes from self employment or a business you have to make 4 estimated quarterly tax payments to the government. Can be done pretty easy online. It has to at the very least total the previous years tax bill.

Hope this helps a little bit.

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

Hello, will the 1099 we get from Envato reflect the total gross paid list price of item before the Seller to Envato fee is paid or will it simply reflect the total paid out to us on the 15th of every month times x’s 12?

Im praying its simply the 12 month payout total we receive on each 15th of the month. The first option will create a nightmare for us, red flags will be flying, almost certain to get some sort of Audit.

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

Yeah, 400+ entries! :O I think the competition produced so many great tracks (judging from just a small randomly picked portion I have listened to) that the most fair method would be to just run a random number generator to pick the winner. ;) I am a bit bewildered with the upcoming “participants voting”. I certainly hope it Is going to be at least a pre-selected number of tracks, because simple math shows that one needs almost 7 hours to listen to just 1 minute of each entry!

Yep, exactly what I was thinking. The people who posted their song in the thread especially with a nice graphic will have the sure advantage.

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

I don’t mind getting a 1099-k at the end of the year that reports my monthly 12 payouts, the exact amount that goes into my paypal on the 15th, but if Envato give us some crazy reporting figure that gives us the total list price gross without deducting fee’s we are all screwed.

It will be a mess. Will probably cause a lot of audits and in a US. state like mine, NH, I don’t owe any state income tax unless I meet a threshold of Gross income then its a percentage of the whole thing. Basically if I grossed $49,999 no tax but if its 50,000 then I am totally screwed and getting taxed on whole amount. Every gross dollar counts.

This is a disaster not to mention the double reporting….

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

Just bought another item and now right at the point of sale screen you can also download with no sign of a rating box??? A user would then have to click on the download page to see it, but lets face it after a user downloads why would they then ever go to their download page, there is no need and now no chance of a rating.

This is a really strange set up.

626 posts
  • Has referred 1000+ members
  • Has sold $75,000+ on Envato Market and is now an Elite Author
  • Has collected 50+ items on Envato Market
  • Elite Author: Sold more than $75,000 on Envato Market
+5 more
Sophonic
says

Just bought an Item, after going to my downloads page and hitting the download button for the item purchased the star rating did not appear until I went out of my way to refresh the page.

No average user will refresh the page after download to get the star rating feature to then come up and rate. This needs serious attention.

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