Last year was my first one with the app store. How do taxes work? Does apple send us a form letting us know how much we've earned? What can we deduct from that? I'd hire an accountant, but I haven't really made that much from Apple to justify the added accountant expense.
If you're a registered business, you'll have to work out your revenues/expenses and see where you stand, if you didn't make any profit, no taxes. If you're just a person, same thing pretty much applies, just have to make sure you report it as additional income (and associated expenses). If you use Turbo Tax or H&R they have a whole section on that stuff.
When doing your taxes make sure to deduct as many expenses as you can think of that you've used that can be considered related to development. Used a Mac and iPhone to develop on? Deduct them; you can also deduct a portion of your phone bill. Developed at an office, deduct it; if you've developed from home, you can deduct a large 'working at home' amount per month from the last year. Any business trips can be deducted as well. *Whisper* A really good accountant will be able to make your profits disappear. If you look at Gameloft's supposed meagre 'profits' from $110m in revenue you'll see they must have really good accountants I'm not condoning ripping off the government of course… Taxes are what pay for the police department, schools, health, fire department, roads, etc. etc. etc., but if you struggled this year, you have a right to make sure you list all your profits and expenses correctly so you don't struggle paying profits you reinvested back into the company.
Apple will not send you any forms. It is entirely up to you, or your accountant, to calculate how much money you made, and how much to give to the government.
