If you earn revenue from Spotify, understanding your tax obligations is crucial. Spotify issues a 1099 form to certain creators to report earnings to the IRS. Here’s everything you need to know about the Spotify 1099, how to obtain it, and what to do with it.
What Is Spotify 1099?
A 1099 form is an IRS document used to report non-employee income. Spotify issues Form 1099-MISC or Form 1099-K, depending on your earnings and payment method. This form summarizes your income from royalties, streams, and other payouts, which must be reported on your tax return.
Who Receives a 1099 from Spotify?
Spotify follows IRS regulations for issuing 1099 forms. You will receive a 1099-MISC if:
- You are a U.S.-based artist or rights holder who earned at least $600 in revenue from Spotify within a calendar year.
- You are subject to U.S. tax laws and receive payments as an individual or sole proprietor.
If you meet the earnings threshold, Spotify will issue the 1099 form by January 31st of the following year. If you do not meet the threshold, you will not receive a 1099 but are still responsible for reporting your earnings.
How to Get Your Spotify 1099
Spotify typically issues 1099 forms through its Spotify for Artists or Spotify Royalties Portal. To access your form:
- Check Your Email – Spotify notifies eligible recipients when their 1099 form is available.
- Log into Your Spotify for Artists or Royalties Account – Navigate to Payments & Tax Documents to find your 1099.
- Download the Form – Save a copy of your 1099 for tax filing and record-keeping.
If you expect to receive a 1099 but do not see it, contact Spotify Support for assistance.
What to Do with Your Spotify 1099
Once you have your 1099 form, follow these steps to report your Spotify earnings:
- Include It on Your Tax Return – Independent artists report their earnings on Schedule C (Form 1040) for self-employment income.
- Deduct Business Expenses – Reduce your taxable income by deducting expenses such as music production, marketing, equipment, and distribution fees.
- Pay Self-Employment Taxes – Spotify earnings are subject to Social Security and Medicare taxes. Use Schedule SE to calculate your tax obligation.
Final Thoughts
If you generate revenue from Spotify, it’s important to stay on top of your tax responsibilities. Even if you don’t receive a 1099, you must report all earnings to the IRS. Keep track of your income and expenses, and consider consulting a tax professional for guidance.