US withholding tax for authors (KDP, Amazon, etc.)

Betty Sanchez10 said:When I received my first payout, I took the necessary paperwork to the local tax office, reported it as foreign income, and filed the appropriate quarterly estimated tax forms. Every time money hits my account, I file those forms and treat the income as royalties from an independent contractor agreement. I use this site to run the numbers: https://www.isplate.info/kalkulator-...jelu-2018.aspx

So far, they haven't asked me to provide any proof, but if they do, I don't see why it would be an issue. This is a legitimate creative work in the truest sense, and I can simply present the Amazonian terms of service, which functions as a binding contract. At least, that's what people in similar situations told me; they were dealing with a different foreign firm rather than Amazon, but the tax office accepted it and stopped asking for a localized version of the contract.

Getting information at the tax office is an uphill battle because most of them don't have a clue what they're looking at. You mention the internet or international transactions, and they look at you like they've seen a ghost.

The sales tax on books doesn't apply here unless you're planning to physically sell books in person in the US without a publisher or middleman, but I don't know much about that since it was never my concern.

Regarding payments, you have to use PayPal or a similar service that allows you to receive funds from Amazon, because Amazon still doesn't offer direct transfers to US banks in certain setups. It isn't complicated, though. Once the money lands in my PayPal, I just transfer it to my checking account and that's that.

If there is anything else you need to know, feel free to reach out via private message.

Is it still like that?
I opened a foreign currency account at JP Morgan Chase, and when I was signing up for Amazon, it accepted all those JP Morgan Chase details. What does that actually mean—does it mean the payments won't land even though everything looks fine on the screen?

Now they’re asking for a TIN. I see other people mentioned earlier that they were asked for different numbers...
Do I need to enter my TIN alongside the HR-pa number, or just enter it as the TIN?
And do I need to activate this TIN somewhere? I heard that's a thing, but I don't know if it's actually true!

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Arthur Flores2 said:Is it still like that?
I opened a foreign currency account at JP Morgan Chase, and when I was signing up for Amazon, it accepted all those JP Morgan Chase details. What does that actually mean—does it mean the payments won't land even though everything looks fine on the screen?

Now they’re asking for a TIN. I see other people mentioned earlier that they were asked for different numbers...
Do I need to enter my TIN alongside the HR-pa number, or just enter it as the TIN?
And do I need to activate this TIN somewhere? I heard that's a thing, but I don't know if it's actually true!

.

It hasn't. Things have changed.

Arthur Flores2 said:Is it still like that?
I opened a foreign currency account at JP Morgan Chase, and when I was signing up for Amazon, it accepted all those JP Morgan Chase details. What does that actually mean—does it mean the payments won't land even though everything looks fine on the screen?

Now they’re asking for a TIN. I see other people mentioned earlier that they were asked for different numbers...
Do I need to enter my TIN alongside the HR-pa number, or just enter it as the TIN?
And do I need to activate this TIN somewhere? I heard that's a thing, but I don't know if it's actually true!

.

Just enter the SSN. Nothing else is required.

Hi everyone, looking for some quick confirmation on this.
If I'm understanding the KDP publishing rules correctly, you don't actually need to set up an LLC or a business entity right away. You can just publish as an individual and report your Amazon earnings on your personal tax returns, unless your income hits a certain threshold—around $50,000, if I recall? Thanks.

Daniel Moore14 said:Hi everyone, looking for some quick confirmation on this.
If I'm understanding the KDP publishing rules correctly, you don't actually need to set up an LLC or a business entity right away. You can just publish as an individual and report your Amazon earnings on your personal tax returns, unless your income hits a certain threshold—around $50,000, if I recall? Thanks.

Of course you can publish as an individual—regardless of how much you make.

Tyler Gonzalez6 said:Of course you can publish as an individual—regardless of how much you make.

Is anyone here currently employed by a company while also publishing on KDP as an individual? I'm wading through a 60-page tax document regarding royalties, and just when I think I finally get it, I realize I'm lost again... from what I've gathered, an author has to register with the IRS within 8 days of receiving their first payment. Can anyone confirm if that's right? Also, if you have experience with this, could you walk me through the process—what documents do I need to file with the IRS, and when do the tax payments actually happen? Truly grateful for any help. 🙂