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#2
02-12-2004, 07:31 AM
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 Re: Software Royalty "Arthur L. Rubin" <ronnirubin[at]sprintmail.com> wrote: - quote - > "D. Stussy" wrote:
Indeed. Royalties paid on the products of your labor are> > Faraz Khan wrote: > > > Last year I received $2400 in royalties on a software that i > > > wrote for a company.... > > There is a difference. Royalties aren't subject to FICA/SE tax. > Aren't they, if the work was personally created? (I realize > that the OP said that isn't the case, but the company > doesn't know that.) Schedule C, not Schedule E, and are subject to SE tax. This is well known to free-lance writers, photographers, and the like; there is no reason I can think of to suppose it wouldn't apply to programmers. -- Chris Green << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
02-11-2004, 02:37 PM
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| Re: Software Royalty "D. Stussy" wrote: - quote - > Faraz Khan wrote:
Aren't they, if the work was personally created? (I realize> > Last year I received $2400 in royalties on a software that i > > wrote for a company. I dont own the copyright or anything > > like that on the software. I occasionally (once a week) > > work for the company to maintain the website where the > > software runs. At the end of the year my company send a > > 1099Misc form with $2400 reported in the Royalty box. Out > > of that $515 was the federal tax withheld and $135 was the > > state (AZ) tax. My question is, shouldnt this be reported > > on a W2 since i did the work on a weekly basis. What > > differnce does it make in the tax that i would owe (or get > > back)? > There is a difference. Royalties aren't subject to FICA/SE tax. that the OP said that isn't the case, but the company doesn't know that.) << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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02-10-2004, 08:25 PM
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| Re: Software Royalty Faraz Khan wrote: - quote - > Last year I received $2400 in royalties on a software that i
There is a difference. Royalties aren't subject to FICA/SE tax.> wrote for a company. I dont own the copyright or anything > like that on the software. I occasionally (once a week) > work for the company to maintain the website where the > software runs. At the end of the year my company send a > 1099Misc form with $2400 reported in the Royalty box. Out > of that $515 was the federal tax withheld and $135 was the > state (AZ) tax. My question is, shouldnt this be reported > on a W2 since i did the work on a weekly basis. What > differnce does it make in the tax that i would owe (or get > back)? - quote - > I am using TurboTax to file do taxes. Should i report this
There is no difference, but it goes on Schedule E.> as regular income or as a royalty? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
02-05-2004, 09:54 PM
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| Software Royalty Last year I received $2400 in royalties on a software that i wrote for a company. I dont own the copyright or anything like that on the software. I occasionally (once a week) work for the company to maintain the website where the software runs. At the end of the year my company send a 1099Misc form with $2400 reported in the Royalty box. Out of that $515 was the federal tax withheld and $135 was the state (AZ) tax. My question is, shouldnt this be reported on a W2 since i did the work on a weekly basis. What differnce does it make in the tax that i would owe (or get back)? I am using TurboTax to file do taxes. Should i report this as regular income or as a royalty? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| royalty, software |
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