Sorry I am asking this question here. I couldn't find any legal or tax category.
I am a developer based out of US. When a user buys an app for $0.99 they have to pay $0.25 tax on it. So Apple collects
App Price: $0.99
Tax: $.25
Total: $1.24
Afterwards Apple pays us developers 70% off $0.99 i.e. $0.69
My question is that do I need to pay Fed & State taxes on $0.69? Hasn't that amount been already taxed and tax taken out of it by Apple ($1.24) or did I miss something?
I searched Apple Dev fourms and only found this answer on the topic - https://forums.developer.apple.com/message/90695#90695
I appologize I am new to this.
I think everybody is missing the point here. The developer said he is "based out of US". Shouldn't he be able to avoid paying the withholding tax thanks to the W-8 BEN-E (W-8 BEN or W-8 IMY) IRS forms? Furthermore SaaS and Software is only taxable in certain states and not in others: https://www.taxjar.com/blog/saas/saas-sales-tax Laura