who ultimately is required by the irs to collect and pay the foreign seller tax? This is a topic that many people are looking for. g4site.com is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, g4site.com would like to introduce to you Tax Talk Webinar Recording 2019. Following along are instructions in the video below:
Everyone thank you for joining us today for our tax talk webinar. Im tricia tricia your host for today. And im a member of the kdp university team season in the us comes around once a year and if youre eligible kdp sends an email letting you know that your end of the year tax forms are ready.
But unless youre 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 cant advise you how to complete the tax interview or give you tax advice. What are we doing here today today. Im gonna give some general tax information outline some common scenarios.
And define some of the less common terms featured in the tax interview. Well 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 us. In most cases. We have combined your forms.
So youll 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. Youre 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. Theres 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 youve 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 theyre 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 its not limited to the address changes your name changes or you change your business status as a reminder youll 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 youre like me.
And you try to do your taxes as early as possible you dont 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 were gonna watch a video that demonstrates how to download your end of the year tax forms from your kdp account your content provider and youre 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 youre a us author or publisher. Whos earned more than ten dollars in us royalties during the calendar year will issue form. 1099 mis c.
Yearly honor before january 31st. If youre 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 well 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 youre 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 youre outside the us youll 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 havent already you can choose to go paperless by clicking the yellow go paperless button. Once weve 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 dont have any tax forms or they arent available yet youll 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.
Youll be able to access your tax forms online. Once theyre 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 lets 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 youll need to answer different questions if youre an independent author or publisher.
Then you would if youre 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 us marketplace.
Even if you live outside the us as long as youre selling products in the us 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 us. 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 youll 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 youre outside the us youll 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 us.
Ten. On the irs website. If your country doesnt have a tax.
Identification. Number you can apply for a us. Individual tax identification vacation.
Number or an employee identification number. If youre 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. Weve 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 countrys treaty with the us.
And if your country doesnt have a treaty with the us you will be subject to the 30 percent tax. Withholding. Lets talk about some of the different terms that you may encounter when youre completing the tax interview.
When youre determining if youre a us citizen or if you should complete the interview as a us. Citizen theres a section called the us 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. Us person for tax.
Purposes the us. Persons test asks questions to help you determine if you meet any. Criteria that would consider you a us.
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. Theres a link in the companion document from todays webinar that will take you to the substantial presence test on the irs website in the international portion of the tax interview.
Theres a question about whether or not youre a beneficial owner. So. What exactly is a beneficial owner.
The beneficial owner is the person or entity who benefits from the payments. When youre 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 youre not familiar with is are you an agent acting as an intermediary. An agent acting as an intermediary is a person or company. Thats 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. Theres 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 us.
One unlikely if this applies to you you would be registered with the us and have a tax id now just because youre selling your books on amazons us marketplace. This doesnt mean that you would answer yes to this question. Unless your business has a physical location in the us.
You probably dont 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.
Theres an area for your signature. If youd like to submit the form with a digital signature. All you need to do is type your name in the box.
And acknowledge that youre submitting the form with a digital signature. If you dont 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 its received by amazon. Thank you for joining us today for the tax talk webinar as a reminder. Well be posting a recording of the webinar on kdp universitys youtube channel and will also open a page on the kdp university.
Help pages that includes fa cues from todays webinar as always happy publishing you .
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