Fortnite Creative Taxes

[zedbs (zwsb)]

So, i don’t know much about taxes, how does the tax work when I get a payout? Will the tax automatically get subtracted or i must pay it?

[Astrotronic]

Hi Zdebol,

Taxes are not taken out. The payouts would be considered ‘self-employment’ income. I’d expect to pay about 15% tax on your earnings if you’re in the US.

If you earned more than 600$ last year you probably received a ‘Form 1099’, the IRS includes instructions with each tax form, so start with a Form 1040 and add forms as needed. (like ‘Schedule SE’)

[zedbs (zwsb)]

so I don’t pay any taxes at the moment? and will these taxes be deducted from my monthly salary next year or will part of my earned money disappear to pay taxes? and one more question, when the tax profile is in my name or in the name of someone in my family and the payment goes to another person’s bank account, who pays the tax? does it work on the principle that let’s say:

the tax profile applies to me but bank account to someone else, so somehow my tax will be deducted on by bank account (profile taxes) or to some one who takes monthly payouts

[Astrotronic]

Taxes are never taken out. It’s like if you charged 500$ to fix toilets, all the people whos toilets you fixed would just give you 500$, and it’s up to you keep track and report earnings + pay taxes.

I don’t know about the different bank accounts thing. But, if someone (Epic) is sending you a 1099, they are also sending that info to the IRS. - So maybe the IRS expects to see taxes paid for whoever’s name is on the 1099.