You know your business best. That’s why Soundrop allows you to report your taxes in the way that makes the most sense for your career.
Clients that previously distributed music through Loudr will remember that Loudr issued 1099s, reporting your withdrawals to the IRS.
Soundrop will not be issuing 1099s.
We recognize that when you make a withdrawal on music earnings there may be multiple rights holders (a label, other band members, etc.) to whom you distribute royalties. It’s not up to us to determine what portion of your withdrawals you report individually as income.
It’s up to you (along with any tax professionals you consult with).
That being said, we want to stress that it’s still important for you to accurately claim your income. To view your 2016 withdrawals:
- Log into your Loudr artist account/s
- Click the WITHDRAW button
- Click “Show Transactions”
- Scroll through your withdrawal history for 2016 and look for the amounts marked "Completed" in red.
- Total these up and that’s your income for 2016.
IMPORTANT NOTE: Because Loudr retained management of their distribution service for some part of last year, they MAY decide to send out 1099s for January/February of 2016. However, if you’ve already added up your withdrawals for 2016 (and then made any necessary adjustments when determining what is reportable income), YOU DO NOT NEED TO WAIT for any 1099s to file taxes, as you’ll have already claimed that income — or some portion of it — when preparing your return.
We hope this change makes things easier for you at tax time, and we wish you many good things for your music in 2017!