I'm contracting to publish a game for someone on Apple's App Store. I will take 15% of the revenue, he gets 85%.
But Apple will report the full amount to the government. Let's say for example this title is very popular (unlikely, but for the sake of argument) and earns a million dollars. I get $150,000, but Apple reports that I got a million.
Am I supposed to be in the much higher tax bracket now? Am I able to report the $850,000 as not my income since I just handed it over to the other guy, who would report it as income?
I'm aware I need to consult the tax code, but I'd like to know at least where to start with this. What kind of money is this?