A book about the tax man?

April 14, 2011 6:11 AM

I've recently started using Kindle Direct Publish. During the signup process, they ask for all of my identifying information so that they can properly cut me a royalty check. What are, if any, my tax obligations?

Does anyone have any experience with this process? They haven't sent me a tax form, or asked that I fill one out, so I assume that they're not going to be taking taxes out of my royalties.

If that's the case, how can I calculate what percentage to set aside from each check to properly cover my taxes at the end of the year?

posted by thanotopsis to Law & Government (3 answers total)

If your income is relatively stable year to year, look at your last year's AGI and compare it to the tax brackets. Whatever bracket you are in, set aside that percentage and you should be generally OK.

Or, a third.
posted by gjc at 6:36 AM on April 14, 2011

Talk to an accountant. After the first year of earning income that is not reported via a W-2 (salary and wages), if the income is high enough, the IRS will generally want you to start submitting estimated taxes on a quarterly basis, as any self-employed person has to do.
posted by megatherium at 7:10 AM on April 14, 2011

Depending on how much you make from this and from other sources, you may be obligated to pay quarterly estimated taxes http://www.irs.gov/businesses/small/article/0,,id=110413,00.html
posted by juliapangolin at 8:10 AM on April 14, 2011