Tax Talk Webinar Recording 2019

Tax Talk Webinar Recording 2019

Hi everyone. Thank you for joining us
today for our Tax Talk webinar. I’m Tricia, your host for today and I’m a
member of the KDP University team. Tax season in the US comes around once a
year and if you’re eligible KDP sends an email letting you know that your
end-of-the-year tax forms are ready. But unless you’re a tax professional, you may
have some questions. KDP customer service is not able to give tax advice or give
instructions on how you should complete the tax interview. We are able to provide
help finding the information you may need to complete the tax interview. Since your tax status is unique, you may need to meet with a tax professional to
help you answer your specific questions. So, if I can’t advise you how to complete
the tax interview or give you tax advice what are we doing here today? Today I’m
gonna give some general tax information, outline some common scenarios, and define
some of the less common terms featured in the tax interview. we’ll be covering
information about why Amazon needs your tax information, discuss how to download
your end-of-the-year tax forms for the sales that you earned in the US
marketplaces, give an overview of the tax interview, and discuss some terms that
you may not be familiar with. Some of you may have had a CreateSpace account last
year and have moved over to KDP. If you reside in the u.s. in most cases we have
combined your forms so you’ll just have the one form that can be downloaded from
your KDP account now if your tax status changed when your account moved to KDP
or you reside outside the US you may have both a CreateSpace and a KDP form
for 2018 royalties both forms can be downloaded from your KTP account the
first question we usually get is why do I need to provide my tax information to
Amazon since Amazon is a us-based company we
require all authors and publishers including nonprofit or tax-exempt
organizations to provide valid taxpayer identification in order to comply with
us tax reporting regulations this is true for all KDP authors and publishers
regardless of where you live by default KDP authors sell on the US
amazon marketplace and from those sales you’re paid royalties these royalties
are considered income by the US taxing authority or IRS since US tax
regulations require Amazon to collect information about authors and publishers
tax status under US law the tax interview helps you submit your tax
information during the account set up for KDP the interview guides you through
a step by step process and gathers all necessary information required to
establish your tax identity and generate a form w-9 for either US authors and
publishers our form w8 for non-us authors and publishers for each tax
interview question there’s a light blue lowercase I in a circle you can hover
over this icon to see more information this information will help provide
additional information that you may find helpful when answering your questions just because you’ve completed the tax
interview during your account setup there are some scenarios where you would
need to retake the tax interview some authors and publishers will receive
emailed notification to retake the tax interview if they’re located outside the
US and took the interview four years ago or if there was information provided
that did not match what the IRS has on file you also need to retake the tax
interview if you have a life change this includes but it’s not limited to the
address changes your name changes or you change your business status as a
reminder you’ll need to make these changes in your
set up prior to retaking the tax interview if any of these changes
occurred during the tax year your end-of-the-year tax form will be
completed with the most recent tax interview entries as part of the
reporting process Amazon provides end-of-the-year tax forms during the
first quarter of the calendar year for content providers that have met certain
conditions if you’re like me and you try to do your taxes as early as possible
you don’t need to wait for the forms to be mailed out the forms will be
available for download from your KDP account and if you would like you can
have your tax forms still mailed to you we’re gonna watch a video that
demonstrates how to download your end-of-the-year tax forms from your KDP
account your content provider and you’re preparing for tax season at the
beginning of every year amazon issues tax forms required by the US taxing
authority called the Internal Revenue Service or IRS if you’re a US author or
publisher who’s earned more than ten dollars in US royalties during the
calendar year will issue form 1099 Mis C yearly honor before January 31st if
you’re an author publisher who resides outside the US and were paid more than
49 cents in US source royalties last year will issue form 1040 to s yearly on
it before March 15 just keep in mind reportable payments are rounded to the
nearest whole dollar so how do you know your tax forms are ready we’ll send you
an email to the email address on your account this email lets you know that
the tax forms are available for download and includes instructions on how to
access the forms if you’re a US publisher with multiple independent
publishing accounts wherever possible your reportable royalties will be
consolidated on one form you only need to access one account and download one
form since all the forms are the same if you’re outside the US you’ll need to
download a form for each business to access your forms through your account
sign in to your KDP account and then click on your names account at the top
click tax information on the left hand side then view provide tax information
if you haven’t already you can choose to go paperless by clicking the yellow go
paperless button once we’ve notified you your tax forms are available you can
click find forms it may take a few moments to pull up your forms when they
appear click the download link this will open up your form as a PDF from there
you can save it to your computer or you can print it if you don’t have any tax
forms or they aren’t available yet you’ll see a message explaining this
when you click the find forms button some common reasons include the forms
have not yet been posted your account did not receive at least 10 dollars in
royalties during the calendar year or your account is exempt from 1099
reporting based on your interview inputs if you opted for paper delivery the
forms are mailed on or before the dates listed depending on where you live forms
may take up to two weeks to arrive regardless of your delivery preference
you’ll be able to access your tax forms online once they’re available
remember that KDP is not able to provide you with any tax advice including what
to do with your tax forms when they arrive if you have questions about how
to file your taxes we recommend you consult a qualified tax professional
let’s talk for a moment about how the tax interview is set up the tax
interview is set up to ask specific questions and these questions will guide
you so that you can provide answers that will correctly determine your tax
withholding and reporting to the IRS this means that based on your answers to
each of the questions the tax interview may change for example you’ll need to
answer different questions if you’re an independent author or publisher then you
would if you’re submitting content as a business or a non-profit once you answer
and submit the answers to key questions the interview questions may check
your completed interview is going to determine if and how much money will be
withheld from each of your sales in the u.s. marketplace even if you live
outside the US as long as you’re selling products in the u.s. marketplace you may
be required to pay taxes or be subject to a 30% tax withholding now even though
everyone with a K tp’ing account is required to complete the tax interview
not everyone living outside the US is required to pay taxes many countries
have treaties with the US and may be eligible for treaty benefits based on
the treaty with your country of residence or where you spend most of
your time and the US you may not have taxes withheld so how would you know if
your country has a treaty with the US the u.s. tax authority or IRS has a
website this website lists all the countries that have treaties with the US
you can access information for your country of residence by going to WWII RS
gov later you’ll have the opportunity to download a companion which contains
links to the IRS website my social security number is considered my tax
identification number or ein examples of tins are Social Security numbers
individual tax identification numbers or items and employee identification
numbers or ein s for business if you’re outside the US you’ll need a tin or an
ITIN to show that your country has a tax treaty with the US now some countries
have their own tins that you can use when completing the tax interview or if
your country does not use tins you can apply for a u.s. ten on the IRS website
if your country doesn’t have a tax identification number you can apply for
a u.s. individual tax identification vacation number or an employee
identification number if you’re a business you can apply by contacting the
IRS by mail but keep in mind that it can take up to seven weeks to complete this
process once your application has been submitted we’ve included a link to the
IRS website in the companion if you need additional assistance if you complete
the interview without a tin or if your country does not have a treaty with the
US that will automatically mean that the US tax withholding will default to 30%
you need to supply the tin to be eligible for a reduction in tax
withholdings based on your country’s treaty with the US and if your country
doesn’t have a treaty with the US you will be subject to the 30 percent tax
withholding let’s talk about some of the different terms that you may encounter
when you’re completing the tax interview when you’re determining if you’re a US
citizen or if you should complete the interview as a US citizen there’s a
section called the u.s. persons test for an individual if you live outside the US
or reside in the US but are citizens of a non-us country you may be considered a
u.s. person for tax purposes the u.s. person’s test asks questions to help you
determine if you meet any criteria that would consider you a u.s. person for tax
purposes if you have a green card or have lived and worked in the US for a
certain amount of time you may be considered a US citizen for the purpose
of tax reporting for more clarification about this section of the interview
there’s a link in the companion document from today’s webinar that will take you
to the substantial presence test on the IRS website in the International portion
of the tax interview there’s a question about whether or not you’re a beneficial
owner so what exactly is a beneficial owner the beneficial owner is the person
or entity who benefits from the payments when you’re completing the interview ask
yourself who ultimately receives the royalties
is it you or is it someone else another question that you may encounter in the
tax interview that you’re not familiar with is are you an agent acting as an
intermediary an agent acting as an intermediary is a person or company
that’s acting on behalf of another individual or group of individuals a
partnership a trust or other flow-through entities may fall under
this category if you have a question about if this applies to you please
reach out to a tax professional there’s also a question about effectively
connected income effectively connected income means that you have business
payments that are connected to the US it may mean that you have a physical
presence in the u.s. one unlikely if this applies to you you would be
registered with the US and have a tax ID now just because you’re selling your
books on Amazon’s US marketplace this doesn’t mean that you would answer yes
to this question unless your business has a physical location in the US you
probably don’t have effectively connected income and if you have
additional questions about if this applies to your situation there are some
examples on the IRS website once you complete the tax interview section
there’s an area for your signature if you’d like to submit the form with a
digital signature all you need to do is type your name in the box and
acknowledge that you’re submitting the form with a digital signature if you
don’t want to sign the tax interview digitally you can print out the form and
mail it to Amazon keep in mind it can take several days for the form to be
processed once it’s received by Amazon thank you for joining us today for the
tax talk webinar as a reminder we’ll be posting a recording of the webinar on
KDP University’s YouTube channel and will also open a page on the KDP
University help pages that includes FA cues from today’s webinar as always
happy publishing you

1 Comment

  1. Bob Rees,Jr says:

    Unfortunately for me, being an "unknown" author..I didn't make enough to report to the IRS per my email from KDP.

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