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I have two applications in the app store which are doing fine! I wanted to know how do I report the income to the IRS that I received from my iPhone apps. I called IRS and they told me to report as normal income.

I read somewhere that I need to report income (estimated taxes) quarterly.

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The IRS gave you an answer about a tax question, and you still felt the need to ask a bunch of anonymous people on the internet? – DJClayworth May 4 '11 at 15:31
@DJClayworth: I wish I could vote down comments. – mehaase May 6 '12 at 4:41
@DjClayworth the pencil pusher he talked to at the IRS is not a lawyer. He got a boilerplate response when there are a multitude of possible responses, subjects can even make brand new private agreements between the IRS and them for their own special taxation regime. – CQM Jun 15 '12 at 15:19
@CQM Are you saying you know for sure that the anonymous guy answering this query on the internet is a lawyer? Or has at least as good qualifications as the "pencil pusher" from the IRS? Or is human? – DJClayworth Jun 18 '12 at 16:14
@DJClayworth no and no. I said what I meant verbatim. – CQM Jun 18 '12 at 16:29

The IRS is correct. Report it on Schedule C or in a pass-through entity form (Form 1065) if you have an LLC. (Along with your expenses, of course.)

There are rules as to how much tax you need to pay throughout the year. Estimated taxes are part of this. You may be able to get away with not paying estimated taxes separately for your iPhone profits if you usually get a substantial refund. In other words, the amount you didn't pay throughout the year can be "made up" by overwithholding on another job.

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What about iPhone app income without having an LLC? – user2877 Feb 27 '11 at 13:36
Just as a sole proprietorship? Schedule C. – mbhunter Feb 27 '11 at 17:46
Is it possible to report earnings from App Store as individual without any related business (sole proprietorship, LLC, etc.) using Schedule C with expenses? – Altaveron Sep 18 '15 at 16:24

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