Hey guys I can't wait to get some videos uploaded for you But I'm abit stuck with setting my store up Is there anyone who could help me with the tax form pretty please
This question is best addressed to UMD Messmaster and he does have some help texts on this subject.
Basically, if you are based in the USA and file a U.S. tax return you will not receive any tax form for income (a 1099K form) from UMD because they do not pay you directly, and they pay their clients thru 3rd party payment systems (Paypal and Dwolla) and therefore the responsibility for sending you a tax form is not with UMD but with Paypal or Dwolla or the 3rd party company that sends you the funds.
I can only speak for myself, a U.S. based wam client who used to receive funds via Paypal, and later switched to Dwolla.....and Paypal complies with the IRS 1099 rules whereby they are only required to send you a 1099K tax form and report yourt income to Tax Authoritoes if the activity on your Paypal account exceeds TWO conditions i.,e.
1) the dollar amount of your transcations exceeds $20,000 in 1 year
AND
2) the amount of your transactions exceeds 200 transactions per year.
If your Paypal account exceeds BOTH of these parameters.....then you WILL receive a 1099 tax form from Paypal. If you do not exceed BOTH of these parameters then you will NOT receive a tax form from Paypal
I believe that Dwolla payments are handled under the same rules.
If you live OUTSIDE of the USA, I suggest you check with Messmaster, but I don't think you will receive any tax forms from UMD, because none of the U.S. based UMD clients receive tax forms either.
Basically, UMD provides you with your income/sales data in your dashboard, and you are responsible to read up on your local country's income tax regulations and then discuss this with your accountant or develop your own income tax reporting strategy....but in a nutshell....
Q:will UMD report your income to the tax authorities = NO, because they do not pay you directly, and all payments come via 3rd party companies like Paypal and Dwolla. Q:will Paypal report your income to the tax authorities = only if you exceed $20,000 and 200+ transactions in 1 year (and file a U.S. tax return).
You should ask Messmaster to guide you thru the form in his store system. The W9 form (for U..S. tax payers) and the W8-BEN form (for overseas clients) is merely a CYA form that is required for Messmasters recordkeeping for his business, and he is required to keep copies of these forms in his business even though he will not be filing reports on your individual stores incomes. So...you need to fill in the forms, bu they will not be used to file reports on you to the tax authorities...they are merely for UMD's business records.
I am neither an accountant nor a tax expert, so my advice is that you contact messmaster to guide you thru the form....but UMD is a business that is required to have records on each client, including TAX ID or social security numbers if you are a U.S. tax payer.
FYI....if you have a store with Clips4sale or with TheMothership (which I also happen to have) then you WILL receive a 1099 tax form from them, because they pay you DIRECTLY via bank transfer and not thru a 3rd party system like Paypal.
Love you, too
