Also, in case you want to go down the rabbit hole of doing your own taxes... - if you are an LLC, you'll be filling out a form 1065 - if you are a sole proprietorship, it will be a 1040 schedule C. - also 1040 SE for self-employment income. - if you only made a little and received no 1099 (and you are not an LLC) you can get away with just slapping the total revenue in line 10 of form 1040 schedule 1 (other income, reserved for random other income). - and finally, if you owe more than $1000 in taxes, you _have to_ pay quarterly estimates or you will be penalized. Wee! Taxes aren't fun, just meticulous. Do your best. The government only gets REALLY mad at those who don't file.
Hi MK, thanks for a super helpful video as always! Just wondering, if I'm a U.S. based author who plans to make my books available in other countries via Amazon or Kobo, do you know if I would have to file taxes individually in each country I made sales in? For example, If I sold books through Amazon UK, then I wouldn't need to file taxes in the UK would I? I'm assuming Amazon would withhold any applicable taxes, so I would just file my regular taxes in the US...
Thank you for the information. I plan on doing all my business of selling my eBooks through Amazon will Amazon be the only source of income that I need to be concerned about with the IRS? Also, being that working with Amazon KDP is brand new, do I need to take a portion (if so how much) out of what I earn through sales of my eBooks to set aside for taxes? Thank you for your help in this M.K. Craig
Yes you'll get a 1099 from Amazon KDP at the end of the year. You should set aside some of your royalties for taxes. Best to consult an accountant on how much, there are different break points in % owed based on overall income reported
If you will owe more than $1000 in taxes in a year, you need to pay quarterly estimated taxes (that's the federal rule, each state has their own rules, I just pay both four times a year). As an entrepreneur it is up to you to determine what to set aside and when you pay.
@@t0dd000 Thank you, MK. I have 13 eBooks now on Amazon, however I have not made any sales yet. Consequently, I have no taxes, but I will not know how much I have made for year, so I do not know if and how much I will owe in taxes. Also, doesn't Amazon take out sales tax on eBook purchases?
Also, how will I know how much taxes I will need to pay to the IRS, just starting out, MK? Have not had to pay any taxes since I have been on SSDI. This is a new venture for me and I have no idea where to start with paying taxes as an my own boss???
You are awesome!
Thank you!
Also, in case you want to go down the rabbit hole of doing your own taxes...
- if you are an LLC, you'll be filling out a form 1065
- if you are a sole proprietorship, it will be a 1040 schedule C.
- also 1040 SE for self-employment income.
- if you only made a little and received no 1099 (and you are not an LLC) you can get away with just slapping the total revenue in line 10 of form 1040 schedule 1 (other income, reserved for random other income).
- and finally, if you owe more than $1000 in taxes, you _have to_ pay quarterly estimates or you will be penalized.
Wee! Taxes aren't fun, just meticulous. Do your best. The government only gets REALLY mad at those who don't file.
Thank you your information is very helpful
You're welcome!
Super helpful video. A lot of it is the same for UK.
Glad I could still benefit in some way
Hi MK, thanks for a super helpful video as always! Just wondering, if I'm a U.S. based author who plans to make my books available in other countries via Amazon or Kobo, do you know if I would have to file taxes individually in each country I made sales in? For example, If I sold books through Amazon UK, then I wouldn't need to file taxes in the UK would I? I'm assuming Amazon would withhold any applicable taxes, so I would just file my regular taxes in the US...
My accountant has never had me remit payments to foreign governments
@@1MKWilliams Good to know. Thanks so much!
Thank you for the information. I plan on doing all my business of selling my eBooks through Amazon will Amazon be the only source of income that I need to be concerned about with the IRS? Also, being that working with Amazon KDP is brand new, do I need to take a portion (if so how much) out of what I earn through sales of my eBooks to set aside for taxes? Thank you for your help in this M.K. Craig
Yes you'll get a 1099 from Amazon KDP at the end of the year. You should set aside some of your royalties for taxes. Best to consult an accountant on how much, there are different break points in % owed based on overall income reported
@@1MKWilliams Thank you, M.K. Much appreciated! Have a great rest of your day. Craig
If you will owe more than $1000 in taxes in a year, you need to pay quarterly estimated taxes (that's the federal rule, each state has their own rules, I just pay both four times a year). As an entrepreneur it is up to you to determine what to set aside and when you pay.
@@t0dd000 Thank you, MK. I have 13 eBooks now on Amazon, however I have not made any sales yet. Consequently, I have no taxes, but I will not know how much I have made for year, so I do not know if and how much I will owe in taxes.
Also, doesn't Amazon take out sales tax on eBook purchases?
Also, how will I know how much taxes I will need to pay to the IRS, just starting out, MK? Have not had to pay any taxes since I have been on SSDI. This is a new venture for me and I have no idea where to start with paying taxes as an my own boss???
Thank you... Great info.!!
Does Amazon pay taxes on your sales since they collect the sales taxes?
Glad I can help. If you use KDP or ACX to sell your books, then yes, Amazon handles point of sale sales taxes and remits them to the correct areas.
They pay the sales tax not your income taxes. Just responding in case you meant income taxes.