Don’t let the IRS take a third of your self-published royalties. Simon Whaley takes you step-by-step through the IRS tax interview process.
No business likes giving away 30% of its income when it doesn’t have to, and that applies to your writing business too. If you’ve opened your first self-published royalty statement to discover 30% of your income has been withheld, you need to act now to stop it happening in the future.
It’s all down to the American Inland Revenue Service (IRS), which requires American companies to withhold 30% of any income earned through them by non-US citizens.
Most of us who self-publish do so via an American-based organisation, such as Amazon, Smashwords, Apple, or Draft2Digital. This means they all have to adhere to IRS regulations. Unless you’ve told these organisations to the contrary, they assume you owe the IRS tax on this royalty income that you’ve earned.
