Non-US Writers - How Do You Handle Tax?

[marisawright]

How do other international authors handle tax?

I'm beginning to think the costs of getting a US tax number isn't worth it.

To submit my W7, I need to attach my passport or a certified copy. I'm not sending my passport by mail to the US - I may never see it again! So I need a certified copy.

Notaries in this country don't provide an Apostille (which is required). The US Consulate charges $50 and they won't accept passports over the counter. The only way to submit my passport for authentication is (again) to send it by mail. An Aussie passport costs $200 so I'm really not willing to chance it.

I've only earned $120 in the last twelve months so it hardly seems worth it. What have other people done?

[chelsfield]

I am an American living in he UK, so I currently dance to the tax tune of both countries.

I find this blog on self-publishing helpful, and this post in particular is about authors in your predicament:

catherineryanhoward.com/2012/02/24/non-us-self-publisher-tax-issues-dont-need-to-be-taxing/

Hope this is helpful!

[Ted]

Canadians can get a free copy of their passport for US tax purposes. I got my W7 paper work in order and sent the information to Smashwords and Amazon.

[marisawright]

Nov 21, 2012 6:24:12 GMT -8 Ted said:

Canadians can get a free copy of their passport for US tax purposes. I got my W7 paper work in order and sent the information to Smashwords and Amazon.

Aussies can't

As I said, getting a certified copy of my passport would involve around $75 in fees and postage costs, plus risking my precious passport in the mail (that's another $200+ cost if it gets lost and I have to replace it).

[marisawright]

Nov 21, 2012 4:01:34 GMT -8 chelsfield said:

I am an American living in he UK, so I currently dance to the tax tune of both countries.

I find this blog on self-publishing helpful, and this post in particular is about authors in your predicament:

catherineryanhoward.com/2012/02/24/non-us-self-publisher-tax-issues-dont-need-to-be-taxing/

Hope this is helpful!

Yes, that's great! There's a lot of excellent advice in the comments too, including the fact that you don't need to own a business to qualify for a EIN. It definitely sounds like the way to go, I wonder why Smashwords and other sites don't mention it?

[Julie Harris]

Marisawright - definitely try the things listed in catherineryanhoward's link, and do it by phone. My friend in Sydney got her EIN this way - I was there listening at the time. It really does work.
Julie.

[bergmaster]

I obtained an EIN number by phone from the UK. Now, as soon as the snow melts and I can get to the Post Office, I will be sending off my W-8BEN forms to Smashwords and Amazon. In the phone call to the US IRS I encountered a male assistant who was patient, kind and helpful, so getting the EIN was not the stressful application I thought it was going to be.

[Julie Harris]

Congratulations! I think the writer of the blog mentioned above deserves a medal.

[Ted]

Here is a link to the IRS explanation of Taxpayer Identification Numbers (TIN's) such as ITIN and EIN.


Here is the link to this info about EIN at the IRS, and below is the information on that page.

You will need an EIN if you answer "Yes" to any of the following questions. For your convenience, clicking on the "Yes" option will take you directly to How to apply for an EIN.

Daily Limitation of an Employer Identification Number

Effective May 21, 2012, to ensure fair and equitable treatment for all taxpayers, the Internal Revenue Service will limit Employer Identification Number (EIN) issuance to one per responsible party per day. This limitation is applicable to all requests for EINs whether online or by phone, fax or mail.  We apologize for any inconvenience this may cause.

Do you have employees?	YES	NO
Do you operate your business as a corporation or a partnership?	YES	NO
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?	YES	NO
Do you withhold taxes on income, other than wages, paid to a non-resident alien?	YES	NO
Do you have a Keogh plan?	YES	NO
Are you involved with any of the following types of organizations? Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns Estates Real estate mortgage investment conduits Non-profit organizations Farmers' cooperatives Plan administrators	YES	NO