Taxes

Tax Interview

All developers onboarding to sell their title on Catalog will need to go through the tax interview with our partner Tax Identity linked from the developer dashboard. Please make sure to enter your information correctly (especially your Tax Identification Number or Foreign TIN) and talk to a tax advisor if there are any parts that you’re unsure about. Panic won’t be able to provide any tax advice.

US Tax Withholding

Any income from selling your title to US customers is considered US sourced income. When Panic pays out royalties on US sourced income to foreign persons we are required to withhold US taxes on all US sourced income.

Your withholding percentage is calculate based on your country of citizenship and residency. There is a treaty section that allows for reduced withholding rates (often times down to 0%) but in order for us to use those reduced rate we need a signed tax form which confirms those treaty amounts apply with your Taxpayer Identification Number (TIN). Check out the IRS page on withholding and tax treaties for more info: https://www.irs.gov/individuals/international-taxpayers/nra-withholding - https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z

If you’re unsure of which treaty amounts apply to you after reading these documents, you’ll need to talk to a tax advisor regarding this.

I Received an Incorrect Tax Withholding Amount

If you believe the tax withholding amount you received is incorrect, reach out to us at catalog-dev@play.date. We’ll be able to send a new link for you to fill out a new tax interview and update the tax withholding to the correct amount. It is imperative you reach out as soon as you realize there’s a mistake. We send withholding amounts to the IRS quarterly. Once a withholding payment is sent to the IRS, we cannot get it refunded. You will need to work with a tax professional to determine the best course of action for a refund from the IRS.

1099-K Tax Forms (US-based Developers)

1099-K’s are prepared when a developer has at least 200 transactions and at least $20,000 in payments. Depending on the state you’re located in, some developers may receive a 1099-K even if they’re under that threshold due to different filing requirements. Many states require 1099-K’s for a lower threshold. Check out this handy article from Stripe that shows all the requirements. If you are issued a 1099-K it will be available via Stripe and you should receive an email notification once available.

Form 1042 (foreign developers)

1042’s are issued by March 15 of each year. This form is issued whether or not you were subject to withholding. Form 1042 will include all US-based sales as well as any withholding amounts. 1042’s are mailed. If you do not receive your tax form by March 31 please reach out to finance@panic.com and we can send you a version electronically.

Address and Contact Information Changes

If you change your mailing address or email please let us know by emailing us at catalog-dev@play.date.