Understanding KDP Tax Information for Self-Published Authors
As a self-published author, navigating the world of taxes can be overwhelming. However, it’s crucial to understand how tax laws apply to your income and to comply with all requirements. In this article, we’ll explain what you need to know about KDP tax information, so you can keep your finances in order and avoid potential legal issues.
What is KDP tax information?
Kindle Direct Publishing (KDP) is Amazon’s self-publishing platform that enables authors to publish and distribute their books worldwide. As a self-published author on KDP, you’re responsible for reporting and paying taxes on your profits. Therefore, you must provide KDP with accurate tax information to avoid tax withholding and penalties.
Types of KDP tax information forms
KDP offers two tax information forms for authors: W-9 and W-8BEN. The form you need to fill out depends on your tax residency and citizenship.
W-9 form
If you’re a US citizen or resident alien, you’ll need to fill out a W-9 form. This form requests your name, address, and tax identification number (TIN), which can be either your social security number (SSN) or employer identification number (EIN).
W-8BEN form
If you’re a non-US citizen or resident alien, you’ll need to fill out a W-8BEN form. This form declares that you’re not a US taxpayer and relieves you from most US tax withholdings. You’ll need to provide your name, address, and foreign TIN (if applicable), as well as certify your tax residency status and claim any applicable tax treaty benefits.
When to provide KDP tax information?
You need to provide your KDP tax information before you can publish your book or receive any payment. Once you submit your tax information, KDP will review and verify it within a few days. If your tax information is incomplete or incorrect, KDP may withhold up to 30% of your earnings for US taxes or applicable tax treaties until you provide the correct information.
How to update KDP tax information?
If your tax status changes or you need to update your tax information, you can do so by logging into your KDP account and accessing the “Royalty Tax Information” page. KDP may request additional documentation to verify your tax status, such as a foreign tax identification number certificate or a tax residency certificate.
Conclusion
Understanding KDP tax information is critical for self-published authors to avoid potential tax issues and comply with tax laws. By filling out the appropriate tax form and keeping your information up-to-date, you can ensure that you receive your earnings in their entirety. As always, we recommend consulting with a tax professional or an attorney for any specific tax advice or questions related to your book profits.
