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Help: Help from any US player who knows how to do taxes for income on EU.

lethal

lethal

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I was going to report it as misceallaneous (1099-MISC), but it requires PAYER’S (mindark I'm assuming) name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone number. As well as the payers TIN. I have no idea how to get MA's TIN or what that even is really, Unsure on a lot of the rest of the details.

This is one of the times living in the US sucks 😰
 
We also require same information in our country outside USA. Submit support ticket to mindark for required information including TIN and they will provide you with this.
 
I don't know particularly how US taxes work - but a big question would be, is it income from work or income from a hobby?

As income from a hobby it would not be taxable. Because if you have to show income, then you would be able to claim the costs of earning that income. Just consider, there is the depreciation on computer & associated hardware, power & internet service costs, home office costs. etc (the % that related to playing EU).

I will take a bet that the costs will be greater than the income. The Tax office would just not want to know
 
I have wondered the same thing. And if we can deduct losses on the off chance we make less than we depo'd.
:broke:
 
All my Money in Entropia is advertising! I use Entropia to advertise and get more business! 😇
 
If you're a Twitch streamer, Entropia is a business expense.
 
In the USA you do have to declare hobby income in the year you receive it. The question one has to answer is was the income from a hobby or a business.

If it was a hobby you can't deduct anything against it . You only need to enter the amount you received and your done. If it was a business then you can deduct as normal. The following link is from the USA IRS and explains how one should decide if the income is from a hobby or business.

Here’s what taxpayers need to know about paying taxes on their hobby activities | Internal Revenue Service

Tax Tip 2021-94, June 30, 2021
www.irs.gov www.irs.gov

IRS Tax Tip 2021-94, June 30, 2021
Many people are engaged in hobby activities that are also a source of income. For example, some people started selling handmade items during the pandemic. These people must report this income on their tax return.
A hobby is any activity that a person pursues because they enjoy it and with no intention of making a profit. This differs from those that operate a business with the intention of making a profit.
In determining whether their activity is a business or hobby, taxpayers must consider nine factors.

These factors are:​

  • Whether the activity is carried out in a businesslike manner and the taxpayer maintains complete and accurate books and records.

  • Whether the time and effort the taxpayer puts into the activity show they intend to make it profitable.

  • Whether they depend on income from the activity for their livelihood.

  • Whether any losses are due to circumstances beyond the taxpayer's control or are normal for the startup phase of their type of business.

  • Whether they change methods of operation to improve profitability.

  • Whether the taxpayer and their advisors have the knowledge needed to carry out the activity as a successful business.

  • Whether the taxpayer was successful in making a profit in similar activities in the past.

  • Whether the activity makes a profit in some years and how much profit it makes.

  • Whether the taxpayers can expect to make a future profit from the appreciation of the assets used in the activity.
All factors, facts and circumstances with respect to the activity must be considered. And, no one factor is more important than another.
If a taxpayer receives income from an activity that is carried on with no intention of making a profit, they must report the income they receive on Schedule 1, Form 1040, line 8 PDF.

More Information:​

Subscribe to IRS Tax Tips

Page Last Reviewed or Updated: 29-Jul-2021
 
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I haven't been withdrawing from the game (yet), but in all my reading on this too being in the US, hobby income is the way to generally go for most. Depending on how you play, it could technically qualify as a business, but the spirit of lilmoo's bullets above basically boils down to whether you are really focusing on playing the game or running a profitable operation in the game. At least for me, a lot of the game stuff comes first, and when I do profit in relatively small amounts, it's secondary (though a nice perk).

I liken it to little old ladies that make quilts and sell them at churches, etc. They may come out a little ahead in the end (if they aren't outright donating them), but their main goal in making them generally isn't to profit, especially to the point of supplementing their income given the amount of time that goes in on a $/hour basis.

If I were consistently withdrawing most every year though due to profits, then I'd feel like I'd have to look a little more closely at the business reporting side. As it stands though, it's more like clearing out your hobby supplies once in a blue moon and maybe coming out ahead if that hobby got more popular. If I was instead reselling in-game regularly, then that's definitely more business-like too. Either way, the main thing is to make sure you're reporting income in some fashion rather than omitting it entirely.
 
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