Canadian wanting to self-publish on Amazon, what tax issues must I keep in mind?
March 16, 2011 6:25 PM Subscribe
I want to self-publish my books on Amazon, Smashwords, Barnes & Noble etc. I am a Canadian (Ontario). What do I need to know about this, for tax purposes, before I start?
posted by JoannaC to Work & Money (3 answers total)
Assume I understand about book writing, book marketing, how to get it out there and be a salesperson etc. I have done my research in this area! Assume too that it is feasible to attain a modicum of success (i.e. income) with this little sideline---perhaps not on the level of Konrath or Hocking, although that would be nice, but money just the same. Enough money that I ought to keep some sort of record of it and take care of the accounting/taxes. So...how exactly do I go about this, being in Canada?
I know that Smashwords has a form I can fill out which will give me an American tax number. I know I can use this with Amazon to get some of the tax they deduct automatically credited back. But how will Revenue Canada deal with this? I assume I must declare this as self-employed income---what documentation will they require so that I can prove the amount?
If I make enough income so that I have to pay taxes on it, I will do so, obviously. And You Are Not my Accountant, obviously as well :) If it got to that point where I did have a ton of money from this, I would consult a professional. I am just curious, as I get this underway, about what sorts of records I will need to keep and if any Canadian mefites have been down this road already and can suggest to me what tax/financial shenanigans I will need to keep in mind, outside of the writing/marketing issues.