How is DistroKid income taxed (the 1099)?

It’s taxable income, and DistroKid reports what you withdraw on a 1099 or 1042 form. What you owe depends on your whole situation, so that part is a job for a tax pro.

Per DistroKid’s help page on tax forms, you get a form if you made a withdrawal in the previous year. It comes by email from statements@tax1099.com. DistroKid doesn’t issue W-2s.

If you changed your tax details partway through the year, each payee gets a separate form for the withdrawals made under their name.

Before you can withdraw anything, DistroKid needs your tax information. US artists fill in a W-9 with their Social Security number or ITIN, or an EIN if they’ve registered a business. Artists outside the US fill in a W-8BEN. DistroKid asks for it once a year. Payouts run through Tipalti, which our DistroKid review covers.

DistroKid’s help center doesn’t say which type of 1099 it sends. The IRS instructions for Form 1099-MISC put royalties of $10 or more in box 2. If yours is a 1099-MISC, that’s where to look.

Not getting a form doesn’t make the money tax-free. Whether it counts as self-employment income, and how withholding works if you live outside the US, depend on details DistroKid won’t advise on. Its help pages send every tax question to a tax professional. Bring the form and your DistroKid receipts.

Last checked

More on Money and royalties