Non-US Tax witholdings?

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Annmarie09

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Hi all,
So I recently published on kindle. I'm a UK-based indie author, with very little experience regarding tax etc.. Do amazon really withold 30% of royalties for tax for non-US authors? I haven't recieved my first payment yet, so I am a little dubious about the whole thing.
Do you have to fill in the tax return form every year?

Thanks!
 

ebar

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I'm currently trying to fight my way through that system which is an absolute pantomime and might ultimately replace Microsoft products as my personal leading cause of anti-Americanism. Go though relevant the help sections on the Amazon Publishing site, prepare to do a lot of reading.

You'll have to get an ITIN number, which is basically a tax number for non Americans. There should be a double taxation agreement between the UK and US that should allow you to avoid Amazon sending the money to the US Tax man in the first place.

Oh and if you think dealing with the US tax authorities from the UK is fun, try being a UK citizen who is resident in Ireland - that just adds to the hilarity!
 

shaldna

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Hi all,
So I recently published on kindle. I'm a UK-based indie author, with very little experience regarding tax etc.. Do amazon really withold 30% of royalties for tax for non-US authors? I haven't recieved my first payment yet, so I am a little dubious about the whole thing.
Do you have to fill in the tax return form every year?

Thanks!

For non-US authors to recieve the full amount you will need to have an ITIN - this can take some time to process.

Scarlet did a post on this a while backwhich is really helpful.

http://absolutewrite.com/forums/showthread.php?t=202216
 

Annmarie09

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Oh and if you think dealing with the US tax authorities from the UK is fun, try being a UK citizen who is resident in Ireland - that just adds to the hilarity!

I feel for you, I really do. If it helps any, my situation isn't ideal either. I somehow have to apply as an under 18 dependent by the end of the year or risk losing the 30% witheld tax :/
 

Annmarie09

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Thank you, Shaldna! That link is really helpful, I think the whole process is starting to make more sense now :)
 

girlyswot

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I think the easiest thing to do in your situation is not to apply for the ITIN now, but to submit a tax return in April, reclaiming whatever tax has been withheld. At that point the IRS will issue you with an ITIN automatically and you won't have to go through the process again.

Though I will admit, I haven't done this myself, being in the amazingly privileged position of a UK citizen who happens to have a US social security number.
 

Annmarie09

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Yes, I think this is probably what I'm going to do. Either way, I'm going up to the US embassy in London over the weekend to get some advice on it, as I live really close anyway.
Just checking, but do you only need to file a tax return if the money is being witheld by the IRS? So if it's amazon doing the witholding, you don't need it?

Thanks!
 
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