Specifically, I am referring to Fuse Energy. According to their own math, I am losing about 25% of my royalty payment to fees. I have called them and they say it's not taxes. And it doesn't look to me like I am losing this same 25% on checks from other companies. Or maybe it's just done in some other way that I don't actually see the loss.
I started thinking about this when I was doing my taxes. It looks to me like I am being taxed on money I never got. For example, if Fuse owes me 10K I have to pay taxes on 10K. That's the amount on the statement. BUT, the actual check I got from them was only 7K. Seems to me I should pay taxes on this lower amount.
How does this work? I am missing something! Thanks in advance for setting me straight!