Taxes/Business status for indie games
Do any of you work for an employer as well as sell indie games? Are you claiming the games as a business? If not, are you claiming deductions for any outsourced work(art mainly) as a hobby deduction. Regardless of yes/no to claiming as a business, how are you setting it up for taxes?
NBA2K, Madden, Maneater, Killing Floor, Sims
I don't make enough currently to have a "real business" set up, but that's the goal. Currently, money I make is just additional personal income. It's not ideal as I may have to worry about penalties for unpaid taxes at the end of the year, but it works for now.
You can still claim deductions for work related to that additional income.
You can still claim deductions for work related to that additional income.
Former Microsoft XNA and Xbox MVP | Check out my blog for random ramblings on game development
Do any of you work for an employer as well as sell indie games? Are you claiming the games as a business? If not, are you claiming deductions for any outsourced work(art mainly) as a hobby deduction. Regardless of yes/no to claiming as a business, how are you setting it up for taxes?
If you are wondering about whether or not you personally should set up a business vs keeping it as a hobby because you are getting a significant amount of income, it would be worth your time to talk to an accountant or a lawyer. It's going to vary person to person and situation to situation.
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