{"id":147,"date":"2015-11-18T21:18:54","date_gmt":"2015-11-19T04:18:54","guid":{"rendered":"http:\/\/www.rissarenae.com\/blog\/?p=147"},"modified":"2015-11-22T16:02:47","modified_gmt":"2015-11-22T23:02:47","slug":"quest-for-stories-part-1","status":"publish","type":"post","link":"https:\/\/www.rissarenae.com\/blog\/2015\/11\/quest-for-stories-part-1\/","title":{"rendered":"Q4S Part 1: IRS, and Royalties, and ISBN’s! Oh My!"},"content":{"rendered":"

Welcome to the first part in my self-publishing series. In this post, we\u2019ll talk about gathering the tools you’ll need to prepare for self-publishing. This entails gathering all the identifying information for yourself and your book, such as information to feed the IRS, places to stash all the cash you’ll be making from your novels, and obtaining an ISBN number to impress the ladies … I mean retailers.<\/p>\n

So let\u2019s get this out of the way (because it’s dull and boring!)<\/p>\n

Keep The IRS Happy<\/h1>\n

Regardless of whether you are a US citizen or a citizen of another country, you must obtain either a Social Security Number (SSN for US citizens) or a Taxpayer Identification Number (TIN for non-US citizens). This is because all the eBook retailers are based in the US where you must pay US taxes on the royalties you receive. Amazon<\/a>, SmashWords<\/a>, Barnes&Nobel<\/a> (nook<\/a>), and CreateSpace <\/a>will not allow you to publish without one of these two numbers.<\/p>\n

\"The<\/a>

… or you’ll be dealing with these guys<\/p><\/div>\n

If you\u2019re a US citizen, you should already have your Social Security Number (SSN). If not, apply for one<\/a>.\u00a0 SSN\u2019s are obtained from the Social Security Agency<\/a>, and not the IRS.<\/p>\n

If you\u2019re not a US citizen, you must apply for a Taxpayer Identification Number<\/a> (TIN). TIN\u2019s must be obtained from the IRS, not the Social Security Agency. To apply, go to the IRS website<\/a>\u00a0 and search for \u201cTIN\u201d.<\/p>\n

Tax Withholding<\/h1>\n

For US Citizens, the IRS will take about 30% of your royalties as tax. Ouch, I know. The good thing is that all eBook retailers will handle the setup and the tax forms for you. At the end of the tax year, most sites will let you choose whether to receive the necessary form by email or snail mail.<\/p>\n

\"I'll<\/a>

I’ll take that.<\/p><\/div>\n

For non-US Citizens, some sites will tell you if your country qualifies for tax breaks on your book royalties. This means that instead of the IRS withholding 28-30% of your royalties for tax purposes, you can apply to have a lesser withholding tax applied.<\/p>\n

The eBook retailer may walk you through this: you will need to fill out a W-8BEN form, citing the specific article of the tax treaty you\u2019re claiming to reduce your tax. Most sites will fill this out for you automatically. I only know Canada\u2019s tax treaty; your country may have their own, and sites like Smashwords will be kind enough to tell you what you need to file.<\/p>\n

Canada\u2019s provision article is: pages 36 and 37 of IRS Publication 901: U.S. Tax Treaties. (as of 2015)<\/p>\n

But be sure to double-check the information provided to you on the site, or look up the tax treaty yourself. The IRS loves to change their documentation every year.<\/p>\n

Royalties to PayPal<\/h1>\n

Only Smashwords <\/a>will allow you to set up PayPal<\/a> as a payment option. All other sites require banking information to wire you the money. In some cases you can opt to get physical cheques, but the threshold is usually around $75-$100 USD before they will cut you a cheque.<\/p>\n

\"Sssss-mokin!\"<\/a>

Sssss-mokin!<\/p><\/div>\n

If you don\u2019t have a PayPal account, all you need is a credit card and an email to sign up. The PayPal threshold is generally smaller, around $10 in earnings must be amassed before a payment is made.<\/p>\n

Royalties to a Bank Account<\/h1>\n

In order to set up wire transfer, you\u2019ll need a whole bunch of numbers and codes to set up your bank account information on all eBook retailer sites. Most banks will give you this info online. If not, call your bank and ask for the following:<\/p>\n