I'm NO expert!! I'm just good at doing research. :) However, please please let me know if any of the info I shared is wrong or misleading!! Thanks a million! Also, can't believe I'm at almost 10K! 🤩 You guys are the BEST, and I couldn't do it without you!! 💛
Don’t quote me but at 5:30 I believe you only need a 1099 if you make over $600. Maybe they send the form anyways, but you don’t need to log it unless it’s over $600. My dad is an accountant and told me if I didn’t make over that then I didn’t need to include it in my taxes. Again though, don’t quote me because I might need misunderstanding your point.
@@TaylorHaselton Thanks for pointing that out!! I know they’ll send you a 1099 if it’s over $10 and you’re a US resident, but I’ve also read that if your business doesn’t make over $400, then you don’t need to worry about taxes. But maybe it’s more specifically $600? Not positive, but either way, doesn’t hurt to include it in your taxes! Somewhat depends on what people are most comfortable with. :)
Hi Sarah!!! Love you by the way❤ So I created a kdp account and it seems that now amazon is withholding taxes from your royalties… is this new updated information?
Amazing video for someone like myself. First year I have to do a business tax. Usually by now I have already did it. But this year I’m definitely procrastinating it. This video really helps even though I’m from Canada 🇨🇦. Thanks a million!!!☺️
Do you select individual or business? Is it safe to put your social on this site or do you suggest getting an LLC for liability protection and getting an EIN number?
I select individual! And yes, totally safe to put your social on KDP! It's needed for tax purposes only, so you don't have to worry about anything bad happening to it. :)
Hi Sarah, I've been watching some of your videos and have found them to be so helpful! I don't know if you've answered this question before, but I'm just curious ... do we have to collect and pay sales taxes or does Amazon KDP do that for us? This is the big thing that is holding me up because it seems like such a nightmare to deal with! Thanks so much.
Good day to you, Sarah! In the sea of click baiting videos to earn big sums on KDP, you are a gem. No one is talking about real hard stuff like taxes. I am non US resident, and just found out how to make that 30% tax withholding go away. So, from what I have learned, Amazon is taking 30% from all KDP earnings, and I gotta pay taxes to US on that rest of 70%? What percentage are they taking away, yearly or quartaly? Also, my native country is taking 45% from what is left... So, I am trying to decide whether to go in this advanture. I dont know anything about paying taxes, how to write accounting book. For whole my life I am dreaded of paper works of official institutions (goes naturally in my country). So this is a big hurdle for me. Please, help if you can. Thank you so much! Best regards. Snezana
Hi, Snezana! Thanks a million for your support! I really appreciate it. First off, I'd like to preface this by mentioning I'm no tax expert, especially for other countries! I've got a decent idea of how things work in the US, but I can't say for other locations. However, I am pretty sure that KDP doesn't withhold any of your earnings for tax purposes. You'll receive your full royalty, which you'll be personally responsible for paying taxes on. Either way, definitely give KDP a try! For me personally, I pay about 15% for taxes on anything related to my business income, including KDP, which still leaves me with plenty. But make sure you understand the laws, especially if you exceed that minimum amount. Sorry I can't provide you with the most specific information, but I hope that helps you get on the right path! Wishing you all the best!
Yes! That's exactly what "for commercial use" means. Typically, this just means you can't resell the image all on its own, but you can implement it into your creations and then sell them!
Thanks! This was so helpful and simply explained. One question, when setting up a KDP account is it good to setup with a P.O box or your physical home address?
What kind of expenses are you talking about? So far, I have published 3 journals/sketchbooks (1 sale) and 1 coloring book (no sales) on KDP using Canva, so the cost of Canva would be an expense, right?
Great question! Yes, if you have the Canva subscription, that would certainly be an expense. Other possible expenses include other subscription and software services, such as Book Bolt, Helium 10, and InDesign. Or if you commissioned someone on Fiverr to design a book for you or you purchased templates on Etsy, those would also be expenses. Ultimately, whatever you use to sell your books! :)
@@SarahLarson thanks for replying. what kind of taxes would there be if a friend of mine did illustrations for one of the books but didn't want any money for it?
Great question! I think things get a lot more complicated for non-US residents, so I don't want to steer you in the wrong direction here. 😂 I'd advise looking into the laws of your country! And fortunately, it should still be pretty easy to go through the tax interview if you're a non-US resident.
Do you have to report sales taxes for each sale? My wife sells a book through KDP and we are wondering if Amazon does that for us or if we have to report that.
Thanks so much for this video!! If you don't mind, I have a question... When filling in my tax information, I'm assuming I should click "individual" since I'm just one person who's selling and doesn't technically own a business or anything. But... It says "individual" includes "Sole Proprietors or Single-Member LLCs where the owner is an individual." I looked into that a bit, and if I understand correctly, a single member LLC just reports all income on their own individual tax return as if the LLC doesn't exist. S O l ol, that would mean I don't need to go in and do any formal paperwork to create a business if I wanna sell through KDP, right? Lemme know if that's at all confusing; my main concern is I just want to know I don't need to go in and get some tax business ID number and all that, at least not yet. (You mentioned in your video how after a certain amount you gotta figure that stuff out since you'd be making a significant quantity of money, but that's not really a concern for me as of right now since I just wanna try doing some low content book selling and see how it goes heh.) Thanks again !! 🌱
@@SarahLarson See ths is My issue.....I Actually DO already have an EIN (Don't need to use My SSN bcuz I want to sell under My Business name). However, I can do so under, 'Individual' as a Single-member/Sole Proprietor, according to KDP but it doesn't allow me to save & continue at the end. So how can I use my Business name, along w/the EIN versus my name.....I'm Confused?!🙁
So glad to hear that! I can't give you super-specific advice (I don't want to steer you wrong!), but I believe you can find a form on the IRS's website that'll help you calculate your estimated quarterlies! And to my knowledge, you shouldn't have to worry about things at the state level, but naturally, look up the laws of your state to be sure. :)
Hi, I am so happy I went across this video. I am thinking about starting doing KDP Amazon and I don't know what is the first step. Do I have to register as a business? Would you be able to help me with that ?
Hi, Joanna! That's super awesome! Getting started is really easy, so don't overthink it. :) Essentially, you just need to create an account and plug in some info! Check out this video for how to get started: ruclips.net/video/bqTBUi-YVWc/видео.html. Hope this helps!! ✨
Hi Sarah, Thank you for all the effort you have putted on this video! I just have one question: You mentioned that we should print it out tge signature and to send it to the provided adress, and I was wondering to which adress should I sent my signature? Thanks in advance!
Absolutely, Xhilda!! You don’t have to print it out and mail it-I’d personally recommend just doing it online, but if mailing it makes you more comfortable, just search for the Amazon mailing address that is closest to your location, and it’ll pop right up! :) Hope that helps!
So...I have a question. I made just under 60 dollars since late November when I started. I'd like to know if I'm still required to file. I'm in the state of Illinois and I've never had to file taxes before. So I'm a little confused and worried at the same time as I don't want to do this wrong. The royalties you earn I assume is the income right?
First off, I'm not a professional, so I don't know everything. :) But yes, your royalties are your income! In this case, I'm guessing you would need to file, since you did go over the $10. I can't say for your particular state, but I'm guessing the same thing applies. It might be wise to contact a professional and see what they have to say about it! Wishing you all the best!
Social security is probably better! But again, it depends on where you're at in terms of your sales. If they're low enough, you may not even technically need to report them on your taxes. An LLC is really only important for protecting yourself from liabilities, and given there are few when selling through KDP (at least to my knowledge), it's not a necessity for most people. :) Hope that helps! I just operate under a sole proprietorship and probably will continue to do so for a good long time; it makes things easier legally, in my opinion. :)
Bingo! You won’t get a 1099 (I think that’s the file type) if you make less than $10 during the calendar year. At that point, it’s so small that’s it’s not worth worrying about. :)
That's a bit different and varies by state, so make sure to do your own individual research! I usually just pay a chunk of money at the end of each year, though I'm sure there's a way to incorporate it into estimated quarterlies. Ahhh, taxes!
I have a question. As a Non US Citizen, I got an EIN from IRS. I was told that i will be banned from Amazon because of my EIN. I am paranoid. Can you explain why i will be banned from Amazon for using my EIN
Eesh, that's annoying. Unfortunately, I only really have information relevant to US citizens, so I'd recommend contacting support to explain your situation and ask what alternatives they'd suggest! I'm sure there's some workaround to your issue.
So I took a closer peek at the tax info on KDP's site, and it seems you should be able to use your EIN without any issues if you're a non-US citizen. Click the box that says TIN for a more in-depth look! It should be valid for both individuals and non-individuals. kdp.amazon.com/en_US/help/topic/G200641090
I'm from Algeria, if I have an ein number and my taxes in amazon become 0%, how much should I pay to IRS at the end of the year? and Will I pay manually, or will Amazon take care of the matter for me?
I'm no tax expert, especially for other countries! I wish I had all the information, but it would probably be wise for you to consult someone. Wishing you all the best! However, I can say that you'll probably have to pay manually. Amazon gives you all your royalties, and it's up to you to pay the taxes on them.
Yes, you can! As a sole proprietor, I'm able to write off my expenses when paying taxes. :) An LLC would be the next step up, for example, but that's really only worthwhile if you need more protection in the case of liabilities! Not too essential with something like KDP.
Thank you for the video that was very interesting & informative. For me it's different because I am in the UK (born & raised); I have my fictional e-books on sale on both Amazon KDP & Smashwords and when I signed up I had to fill in a W8-BEN form online as the UK has a tax-treaty agreement with the USA (this is my first year as a self-employed individual) and they are both US Companies. Very recently I had Smashwords send me a 1042-S form for my records and they sent one to the IRS because last year in 2021 I sold 2 of my e-books. Need to double-check even though I am in the UK am I paying taxes towards the US or the UK? And if it is the US how do I pay the tax plus do I need to fill in any tax-form for the IRS? Thank you.
Oh wow, that's complicated! Honestly, I don't really know how all that works. I want to say you'll be paying taxes to the US because of KDP, butttt I may be wrong, so don't quote me! You'll probably want to speak to a tax expert to figure things out!
Hmm, you’ll have to contact KDP about that! As long as you’ve already filled out your author info and bank info, you shouldn’t be getting an error. And to my knowledge, there’s no other way to fill it out.
I'm NO expert!! I'm just good at doing research. :) However, please please let me know if any of the info I shared is wrong or misleading!! Thanks a million! Also, can't believe I'm at almost 10K! 🤩 You guys are the BEST, and I couldn't do it without you!! 💛
Don’t quote me but at 5:30 I believe you only need a 1099 if you make over $600. Maybe they send the form anyways, but you don’t need to log it unless it’s over $600. My dad is an accountant and told me if I didn’t make over that then I didn’t need to include it in my taxes. Again though, don’t quote me because I might need misunderstanding your point.
@@TaylorHaselton Thanks for pointing that out!! I know they’ll send you a 1099 if it’s over $10 and you’re a US resident, but I’ve also read that if your business doesn’t make over $400, then you don’t need to worry about taxes. But maybe it’s more specifically $600? Not positive, but either way, doesn’t hurt to include it in your taxes! Somewhat depends on what people are most comfortable with. :)
@@SarahLarson Definitely makes sense! I feel like tax rules change all the time too, better to be safe than sorry overall!
Hi Sarah!!! Love you by the way❤
So I created a kdp account and it seems that now amazon is withholding taxes from your royalties… is this new updated information?
@sarah Larson
Very informative and did you say "Unfortunately or fortunately" you can or can't deduct expenses, well you explained it after better. Thanks
Amazing video for someone like myself. First year I have to do a business tax. Usually by now I have already did it. But this year I’m definitely procrastinating it. This video really helps even though I’m from Canada 🇨🇦. Thanks a million!!!☺️
So glad it could help!! Best of luck with your business taxes! Haha, always an intimidating (and expensive) time of the year!
Do you still have to pay taxes even though you are in Canada?
@@aggie_candy I have heard we need to pay double taxation and it is kinda discouraging :(
This is so helpful! Thank you so much! Also did you change your hair? Looks pretty!
Sooo glad I could help!! And aww, thank you!! You're so sweet!! 💛Got it cut recently and curled it for the video. 😊
@@SarahLarson no problem at all! And ah makes sense, looks great!
Do you select individual or business? Is it safe to put your social on this site or do you suggest getting an LLC for liability protection and getting an EIN number?
I select individual! And yes, totally safe to put your social on KDP! It's needed for tax purposes only, so you don't have to worry about anything bad happening to it. :)
Thank you for this video! I really needed help with this 😅 and you made it less stressful 😊
Hi Sarah,
I've been watching some of your videos and have found them to be so helpful! I don't know if you've answered this question before, but I'm just curious ... do we have to collect and pay sales taxes or does Amazon KDP do that for us? This is the big thing that is holding me up because it seems like such a nightmare to deal with! Thanks so much.
Hi, Donna! Thanks so much for supporting my channel!! I really appreciate it! 💛 NO worries about sales tax! Amazon handles ALL of that for you. :)
Good day to you, Sarah! In the sea of click baiting videos to earn big sums on KDP, you are a gem. No one is talking about real hard stuff like taxes. I am non US resident, and just found out how to make that 30% tax withholding go away. So, from what I have learned, Amazon is taking 30% from all KDP earnings, and I gotta pay taxes to US on that rest of 70%? What percentage are they taking away, yearly or quartaly? Also, my native country is taking 45% from what is left... So, I am trying to decide whether to go in this advanture. I dont know anything about paying taxes, how to write accounting book. For whole my life I am dreaded of paper works of official institutions (goes naturally in my country). So this is a big hurdle for me. Please, help if you can. Thank you so much! Best regards. Snezana
Hi, Snezana! Thanks a million for your support! I really appreciate it. First off, I'd like to preface this by mentioning I'm no tax expert, especially for other countries! I've got a decent idea of how things work in the US, but I can't say for other locations. However, I am pretty sure that KDP doesn't withhold any of your earnings for tax purposes. You'll receive your full royalty, which you'll be personally responsible for paying taxes on. Either way, definitely give KDP a try! For me personally, I pay about 15% for taxes on anything related to my business income, including KDP, which still leaves me with plenty. But make sure you understand the laws, especially if you exceed that minimum amount. Sorry I can't provide you with the most specific information, but I hope that helps you get on the right path! Wishing you all the best!
thank you so much!! i guess i never finished setting that up.
Glad this could help you!! 💛
Hey, I’m new to KDP.
If I find an image online that’s “for commercial use” like On unsplash... is it legally ok to put on my book to sell
Yes! That's exactly what "for commercial use" means. Typically, this just means you can't resell the image all on its own, but you can implement it into your creations and then sell them!
Thanks! 😊
Thanks! This was so helpful and simply explained. One question, when setting up a KDP account is it good to setup with a P.O box or your physical home address?
So glad I could help!! 💛 Just your physical home address! It won’t be visible anywhere. :)
@@SarahLarson Thanks!
What kind of expenses are you talking about? So far, I have published 3 journals/sketchbooks (1 sale) and 1 coloring book (no sales) on KDP using Canva, so the cost of Canva would be an expense, right?
Great question! Yes, if you have the Canva subscription, that would certainly be an expense. Other possible expenses include other subscription and software services, such as Book Bolt, Helium 10, and InDesign. Or if you commissioned someone on Fiverr to design a book for you or you purchased templates on Etsy, those would also be expenses. Ultimately, whatever you use to sell your books! :)
@@SarahLarson thanks for replying. what kind of taxes would there be if a friend of mine did illustrations for one of the books but didn't want any money for it?
Hmm, I’d guessing that that wouldn’t be tax-deductible, but naturally, I’m no expert. :)
Thanx, for info. What about non US residents? 😁 Have some idea? 🙏🤗
Great question! I think things get a lot more complicated for non-US residents, so I don't want to steer you in the wrong direction here. 😂 I'd advise looking into the laws of your country! And fortunately, it should still be pretty easy to go through the tax interview if you're a non-US resident.
Taxes are on the royalty, or on the entire selling price of the book?
Do you have to report sales taxes for each sale? My wife sells a book through KDP and we are wondering if Amazon does that for us or if we have to report that.
Great question! Thankfully, that isn't something you need to worry about. That's all on Amazon for a change. :)
Do I need to pay taxes to the government? If I earn thru kdp?
Thanks for the info!! For the bank account can I just use my personal bank account or do I need a business account?
I'm sure most people use personal, so you're good to go that route! :)
Thanks so much for this video!! If you don't mind, I have a question... When filling in my tax information, I'm assuming I should click "individual" since I'm just one person who's selling and doesn't technically own a business or anything. But... It says "individual" includes "Sole Proprietors or Single-Member LLCs where the owner is an individual." I looked into that a bit, and if I understand correctly, a single member LLC just reports all income on their own individual tax return as if the LLC doesn't exist. S O l ol, that would mean I don't need to go in and do any formal paperwork to create a business if I wanna sell through KDP, right? Lemme know if that's at all confusing; my main concern is I just want to know I don't need to go in and get some tax business ID number and all that, at least not yet. (You mentioned in your video how after a certain amount you gotta figure that stuff out since you'd be making a significant quantity of money, but that's not really a concern for me as of right now since I just wanna try doing some low content book selling and see how it goes heh.) Thanks again !! 🌱
Hey! You can just select individual without any worries. :) No tax ID or fancy forms necessary!
@@SarahLarson Okay, thanks so much !! Have a nice day ~
@@SarahLarson See ths is My issue.....I Actually DO already have an EIN (Don't need to use My SSN bcuz I want to sell under My Business name). However, I can do so under, 'Individual' as a Single-member/Sole Proprietor, according to KDP but it doesn't allow me to save & continue at the end. So how can I use my Business name, along w/the EIN versus my name.....I'm Confused?!🙁
thanks so much! is there any location where i can learn more about this?
You can always go right to the source! :) kdp.amazon.com/en_US/help/topic/G201723290
Your video is SUPER helpful, thank you! My question is how do we calculate our estimated quarterly taxes? Thanks!
Also - is there anything we have to pay in taxes at the state level? I know every state is different but just a general question.
So glad to hear that! I can't give you super-specific advice (I don't want to steer you wrong!), but I believe you can find a form on the IRS's website that'll help you calculate your estimated quarterlies! And to my knowledge, you shouldn't have to worry about things at the state level, but naturally, look up the laws of your state to be sure. :)
Hi, I am so happy I went across this video. I am thinking about starting doing KDP Amazon and I don't know what is the first step. Do I have to register as a business? Would you be able to help me with that ?
Hi, Joanna! That's super awesome! Getting started is really easy, so don't overthink it. :) Essentially, you just need to create an account and plug in some info! Check out this video for how to get started: ruclips.net/video/bqTBUi-YVWc/видео.html. Hope this helps!! ✨
Hi Sarah,
Thank you for all the effort you have putted on this video!
I just have one question: You mentioned that we should print it out tge signature and to send it to the provided adress, and I was wondering to which adress should I sent my signature?
Thanks in advance!
Absolutely, Xhilda!! You don’t have to print it out and mail it-I’d personally recommend just doing it online, but if mailing it makes you more comfortable, just search for the Amazon mailing address that is closest to your location, and it’ll pop right up! :) Hope that helps!
@@SarahLarson But then thing is ty and I can't sent it online and they don't accept my signature.
Hmm, that’s really weird. You may want to contact KDP support about that!
So...I have a question. I made just under 60 dollars since late November when I started. I'd like to know if I'm still required to file. I'm in the state of Illinois and I've never had to file taxes before. So I'm a little confused and worried at the same time as I don't want to do this wrong.
The royalties you earn I assume is the income right?
First off, I'm not a professional, so I don't know everything. :) But yes, your royalties are your income! In this case, I'm guessing you would need to file, since you did go over the $10. I can't say for your particular state, but I'm guessing the same thing applies. It might be wise to contact a professional and see what they have to say about it! Wishing you all the best!
nice and very much informative
Hello thank you for the info! Question is it better to use a LLC or my social security for taxes
Social security is probably better! But again, it depends on where you're at in terms of your sales. If they're low enough, you may not even technically need to report them on your taxes. An LLC is really only important for protecting yourself from liabilities, and given there are few when selling through KDP (at least to my knowledge), it's not a necessity for most people. :) Hope that helps! I just operate under a sole proprietorship and probably will continue to do so for a good long time; it makes things easier legally, in my opinion. :)
Very helpful....Subscribed :)
Late reply, but you don't have to report the income if you don't make at least $10? I'm in the US for context.
Bingo! You won’t get a 1099 (I think that’s the file type) if you make less than $10 during the calendar year. At that point, it’s so small that’s it’s not worth worrying about. :)
What about how do you pay your state tax.
That's a bit different and varies by state, so make sure to do your own individual research! I usually just pay a chunk of money at the end of each year, though I'm sure there's a way to incorporate it into estimated quarterlies. Ahhh, taxes!
I have a question. As a Non US Citizen, I got an EIN from IRS. I was told that i will be banned from Amazon because of my EIN. I am paranoid. Can you explain why i will be banned from Amazon for using my EIN
Eesh, that's annoying. Unfortunately, I only really have information relevant to US citizens, so I'd recommend contacting support to explain your situation and ask what alternatives they'd suggest! I'm sure there's some workaround to your issue.
So I took a closer peek at the tax info on KDP's site, and it seems you should be able to use your EIN without any issues if you're a non-US citizen. Click the box that says TIN for a more in-depth look! It should be valid for both individuals and non-individuals. kdp.amazon.com/en_US/help/topic/G200641090
I'm from Algeria, if I have an ein number and my taxes in amazon become 0%, how much should I pay to IRS at the end of the year? and Will I pay manually, or will Amazon take care of the matter for me?
I'm no tax expert, especially for other countries! I wish I had all the information, but it would probably be wise for you to consult someone. Wishing you all the best! However, I can say that you'll probably have to pay manually. Amazon gives you all your royalties, and it's up to you to pay the taxes on them.
If I applied as an individual for kdp, could I still write off the expenses? Or is that only if I applied as a corporation?
Yes, you can! As a sole proprietor, I'm able to write off my expenses when paying taxes. :) An LLC would be the next step up, for example, but that's really only worthwhile if you need more protection in the case of liabilities! Not too essential with something like KDP.
When you enter your SSN to set up the kdp, do they pull your credit? Or is it just there for tax purposes?
It's for identification and tax purposes. Amazon kdp does nothing with your credit
Just for tax purposes
No credit involved!
Thank you for the video that was very interesting & informative. For me it's different because I am in the UK (born & raised); I have my fictional e-books on sale on both Amazon KDP & Smashwords and when I signed up I had to fill in a W8-BEN form online as the UK has a tax-treaty agreement with the USA (this is my first year as a self-employed individual) and they are both US Companies. Very recently I had Smashwords send me a 1042-S form for my records and they sent one to the IRS because last year in 2021 I sold 2 of my e-books. Need to double-check even though I am in the UK am I paying taxes towards the US or the UK? And if it is the US how do I pay the tax plus do I need to fill in any tax-form for the IRS? Thank you.
Oh wow, that's complicated! Honestly, I don't really know how all that works. I want to say you'll be paying taxes to the US because of KDP, butttt I may be wrong, so don't quote me! You'll probably want to speak to a tax expert to figure things out!
every time I go to fill out the tax info it says error.. is there another way?
Hmm, you’ll have to contact KDP about that! As long as you’ve already filled out your author info and bank info, you shouldn’t be getting an error. And to my knowledge, there’s no other way to fill it out.
Bad Audio
Taxes are on the royalty, or on the entire selling price of the book?