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Tax FAQ for US Affiliate Partners

 

United States Persons: Generally, "United States persons" include citizens or residents of the US (including green card holders or US resident aliens that satisfy the 183 day "substantial presence test"), and partnerships or corporations created or organized in the US or under the laws of the United States.

If you are a US person, please complete and submit Form W-9 here.

For US persons, the purpose of a Form W-9 is to provide your identifying information (name, address, TIN, tax classification, etc.) and establish your status as a US person. We are required to obtain a US taxpayer identification number ("US TIN") from each US person prior to making payment. If we do not receive a valid US TIN (e.g., SSN or EIN), then we are required to withhold 30% of your gross payments and deposit the amounts with the IRS.

Q. If I don't fill out the tax page will any of my earnings be withheld?
A. If you do not complete your W9 tax page then 30% of your earnings will be withheld.

Q. Do I need to supply all of the tax information Creative Market asks for or can I choose to only supply a portion?
A. The IRS requires that the relevant forms be filled out completely. The absence of required tax information may result in (additional) withholding.

Q. If I am a US citizen but live and maintain a residence or address in another country does that affect the tax information I must supply to Creative Market and/or how much (if any) of my earnings will be withheld?
A. No, US citizens must provide a completed Form W-9. Once received, Creative Market will no longer be required to withhold on your earnings.

Q. Does the amount of my Creative Market earnings affect what tax information I need to supply or the amount (if any) that will be withheld?
A. No, at this time, all shop owners on Creative Market must provide their Form W-9.

Q. Do I need to pay tax to the IRS directly?
A. Creative Market will be collecting and remitting any withholding to the IRS. The US government will not expect you to self-assess this tax.

Q. Are my Creative Market earnings classified as royalties?
A. Generally, transactions in digital creative content gives rise to royalty earnings.

Q. What is a Form 1099-MISC?
A. This form reports the amount of your gross sales on Creative Market that may be taxable in the US, as well as any amounts required to be withheld from your sales and/or affiliate commissions.

Q. What is the difference between a Form 1099-MISC and a 1099-K?
A. The term 1099-MISC is a general term for reporting that encompassing a large variety of types of earnings. The 1099-K reports only certain types of income.

Q. Do I report my total/gross amount of sales for my taxes or the 70% I get after Creative Market takes their percentage?
A. Shop owners will be required to list the gross amount shown on their Form 1099-MISC.

Q. What time period does my 1099-MISC cover?
A. The 1099-MISC covers one calendar year (Jan 1st through Dec 31st).

Q. The bulk of my Creative Market earnings were from sales made in a previous year. If I withdraw those earnings in a subsequent year do I show those earnings on the current year’s taxes or do I need to amend the tax forms I submitted last year?
A. US income tax rules require that your sales be reported in the year they occur. The time that a shop owner requests payout is generally not determinative.

Q. Does the gross amount on the 1099-MISC include money I withdrew and money I left in my Creative Market account?
A. Yes, the IRS considers all sales as part of the gross amount regardless of whether or not you withdrew none, some, or all of your earnings.

Q. Are all US partners getting a 1099-MISC?
A. You will receive a 1099-MISC unless you fall under one of the following situations:

  1. You will not receive a 1099-MISC if your sales were $10 or less. Please note that if you had affiliate commissions, but no product sales you will not receive a 1099-MISC and we don’t report affiliate commissions in a situation like that.
  2. You will not receive a 1099-MISC if you selected C Corporation or S Corporation as your Tax Classification on your W9. The IRS does not require Creative Market to file a 1099 for these types of shops as they are corporate entities.
  3. You will not receive a 1099-MISC if you failed to provide an address or entered the wrong address.
  4. You will not receive a 1099-MISC if you changed your address after we pulled the information to mail it.

Please note that in the situations above you can still find the information and breakdowns here: https://creativemarket.com/account/taxes/statements

Q. Why haven’t I received a 1099-MISC for both of my shops and partner sales
A. If you have more than one shop or are a partner you will only receive one if you indicated the same info on your W9 for both. The amounts listed would be the gross for product sales and bundle commissions for all shops you own. The Other Income listed would be the total amount of affiliate commissions for all shops you own.

Q. Where can I find my tax statement?
A. Creative Market provides you with a tax statement PDF which you can easily download. It is important to note that this is not an official government tax document however, it does include the numbers which we report to the IRS. 

This statement is typically available before the official tax documents are mailed and will allow you to get a head start on your taxes. 

Q. Why does my dashboard page not match what’s on my 1099-MISC?
A. Your dashboard page may not match up where it lists Total Revenue because of things such as discounts, bundles, etc. The the dashboard page is not a tax information page.

Q. Are refunds included in the gross on my 1099-MISC?
A. No.

 

Disclaimer: Creative Market does not provide tax advice. For further information and to ensure you are complying with tax laws, please consult a tax professional.

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