Constant Content

OK, so CC is a Canadian company and we aren't getting any 1099's from them. But how do we report our income? Do we say it's royalties or non-employee compensation? What's everybody been doing?

No reporting to the IRS means I don't report it.

I'm a horrible person and I should probably feel bad.

I did it as non-employee income.

Funny thing, I've already asked three different accountants the same question in case I decide to make it a full-time occupation, and none of them has been able to give me a direct answer! They all said that online transactions are not really regulated in my country unless you have an online business with a registered SSN and all. I could register as a freelancer, but then I'd have to pay approximately 600 Euro every per trimester for self-insurance and a hefty 35% cut from my income which, at this point at least, is not worth the hassle.

I'll just go with Lysis' solution for the time being!

Thanks everybody. I think I will report it as non-employee comp too.

Some countries have little to no Internet regulations. Lucky for them!

I'm in Australia and my accountant has requested that I report my foreign income earnings from writing as self-employed income to the Australian Taxation Office. So whatever I earn in US dollars is entered into a spreadsheet showing the US dollar amount. Then I convert it to Aussie dollars in Paypal (ugh, disgustingly exorbitant exchange rate) and note down the Aussie dollar value **on that day** the conversion took place. It's important to be accurate about the conversion rate because it fluctuates so regularly. Income earned in Aussie dollars from Aussie clients is ALSO listed on the same spreadsheet with GST included, but without exchange conversions.

At the end of each reporting quarter, I tally up the total amount of Aussie dollars on the spreadsheet and submit the Business Activity Statement. Aussie dollar earnings are entered as regular self-employed income. US earnings converted to Aussie dollars are entered as foreign income. For those Aussies claiming GST input credits, you only pay GST on any Aussie income you declare. There is no GST payable on foreign earnings, even if you convert them to local currency into your bank account, so it pays to keep income sources itemized and separated

I'm in the UK. I report the amount that I get in GBP after converting from USD via Paypal as self employed income. Paypal fees must be a deductible business expense as I can't do business without paying them, so I don't see the point in converting my income using the official exchange rate and them deducting the fees as a business expense, as the total amount of taxable income would work out the same.