What are these forms and which one will i get?
What are these forms and which will i get?
Between January and March of each year, Envato will provide you with tax forms 1099 or 1042, the date you can expect to receive the form and the form that you will receive will vary depending on whether you have submitted your W8-BEN, W8-BEN-E or W9 forms.
- If you have submitted your W9 form we will be sending you your Form 1099, to be posted to your account billing address by January 31.
- If you submitted a Form W8BEN or W8BEN-E, we will be posting your Form 1042 form by March 15 each year.
- If you had earnings before you submitted your Form W8BEN or W8BEN-E, you will receive a Form 1099 for your earnings before you submitted the form and a Form 1042 for your earnings after your submitted the form.
For more information regarding these forms, please contact your local tax advisor.
FAQ: Tax Forms 1099
What appears on the 1099 form?
It provides a summary of your US-sourced income as well as taxes paid to the IRS on your behalf. You may use this information in completing your tax return, so make sure you give them to your tax advisor/accountant.
The earnings and taxes related to the earnings that were credited to your Envato account during the period January to December.
What do the figures mean?
The amounts shown as income are your total earnings for the period January to December. The amounts shown as the tax paid are the taxes that Envato collected from your earnings and paid to the IRS on your behalf.
Why did I not get a Form 1099?
Either you did not have any earnings from Envato during the period or you are a non-US person and have submitted a Form W8BEN or W8NE-E. If you submitted a Form W8BEN or W8BEN-E, you will receive a Form 1042 which would have similar information as the Form 1099 from March following the year your earnings have been credited to your Envato account.
When will I get my form?
You will receive Form 1099 by January 31 following the calendar year that your earnings have been credited to your Envato account.
Can I get the form for a different period so that it matches the financial year of my country?
No, unfortunately, the form is an annual form that has to match the United States financial year (i.e. January to December). This is an IRS requirement.
Can I get it electronically?
Yes, you can. Your electronic statements are under your account settings - Author Tools - Tax Summaries.
What do I do with my summary?
You may use this information in completing your tax return, so make sure you give them to your tax advisor/accountant.
When do I get my money back?
Depending on whether you have other earnings (apart from your earnings from Envato), your personal tax rate and the tax laws in your home country, you may be entitled to a refund on some of the taxes paid after you lodge your tax return with the tax authority in your country.
My Form 1099 says royalties of $X but on my statements page, my funds show a lesser amount. Why is that?
The earnings amount displayed on your Form 1099 is your gross (or total) income from January to December. This is the total revenue you received over the course of the year through Envato before we make deductions from Envato services charges and taxes.
These charges are:
- Any taxes
- Author fee
This earnings figure is different to the total amount that you would have withdrawn from Envato over the course of the year, which is what you receive after these deductions are made.
Keep in mind, when you prepare your tax return you may be able to claim a tax deduction for the author fee charges. You can get the total amount of the author fees from your statement page. We suggest you speak to your tax adviser/accountant if you need further assistance.
Where do I find the total amount of author fees that I paid Envato?
You may find the total earnings, taxes and author fees for any period in your statements page. Just select statement from the drop-down box on your username (the top right hand corner).
What do the figures mean?
The amounts shown as income are your total earnings for the period January to December. The amounts shown as tax paid are the taxes that Envato collected from your earnings and paid to the IRS on your behalf.
What do Royalty, Other Income and Non-Employee Compensation mean?
Royalties are your earnings from licensing your items to your customers and the included support. Other income is your earnings from extended and renewed support. Non-Employee Compensation are your referral earnings.
I am not a US author, but I still received a Form 1099. Why?
You received a Form 1099 because you had some earnings before you submitted your tax information (Form W8) in the previous calendar year.
Box 2 is the income that you earned before your submitted your tax information. Box 4 is the backup withholding tax that was applied to those earnings.
You will also receive a Form 1042 in March which will show your earnings from the time you submitted your tax information.
You may use these statements in completing your tax return in your country. You may be able to claim foreign tax credit for the US taxes you paid against the tax liability in your country. We suggest you give these statements to your tax adviser/accountant.
FAQ: Tax Forms 1042
When will I get my form?
Your Form 1042 will be posted from the United States on 15 March each year.
Why did I not get a Form 1042?
You may not have been issued a Form 1042 because you did not submit your tax information. You were issued a Form 1099 instead.
To ensure that you receive your Form 1042, please submit your tax information by copying the following link and updating it with your username https://themeforest.net/user//tax_information/new
Can I get the form for a different period so that it matches the financial year of my country?
No, unfortunately, the form is an annual form that has to match the United States financial year (i.e. January to December). This is an IRS requirement.
Can I get it electronically?
Yes, you can. Your electronic statements are under your account settings - Author Tools - Tax Summaries.
What do I do with my summary?
You may use this information in completing your tax return, so make sure you give them to your tax advisor/accountant.
When do I get my money back?
Depending on whether you have other earnings (apart from your earnings from Envato), your personal tax rate and the tax laws in your home country, you may be entitled to a refund on some of the taxes paid after you lodge your tax return with the tax authority in your country.
We suggest you ask your tax adviser on how to include the information in your tax return in your country.
My Form 1042 says royalties of $X but on my statements page, but I did not receive this amount from Envato. Why is that?
The earnings amount displayed on your Form 1042 is your gross (or total) income from January to December the previous year. This is the total revenue you received over the course of the year through Envato before we make deductions from Envato services charges and taxes.
These charges are:
- Any taxes
- Author fee
This earnings figure is different to the total amount that you would have withdrawn from Envato over the course of the year, which is what you receive after these deductions are made.
Keep in mind, when you prepare your tax return you may be able to claim a tax deduction for the author fee charges. You can get the total amount of the author fees from your statement page. We suggest you speak to your tax adviser/accountant if you need further assistance.
Where do I find the total amount of author fees that I paid Envato?
You may find the total earnings, taxes and author fees for any period in your statements page. Just select statement from the drop-down box on your username (the top right hand corner).
What do Royalty, Other Income and Non-Employee Compensation mean?
Royalties (Box 2) are your earnings from licensing your items to your customers and the included support. Other income (Box 3) is your earnings from tools license, extended and renewed support. Non-Employee Compensation (Box 7) are your referral earnings. Federal income tax withheld (Box 4) is the backup withholding tax that was applied to those earnings.
You may use these statements in completing your tax return in your country. You may be able to claim foreign tax credit for the US taxes you paid against the tax liability in your country. We suggest you give these statements to your tax adviser/accountant.