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View Full Version : Possibly stupid question about ARe and 1099s



DancingMaenid
12-13-2014, 11:54 AM
This might be a stupid question, but I figured it'd be best to ask around. If necessary, I'll contact the site directly, but since I know some people on here distribute via All Romance Ebooks, I thought I'd ask here.

I've been looking into creating a publisher/author account to sell self-published erotica on ARe. When I took a peek at the sign-up page, though, I was a little confused about something. Under tax information, it asks if you're going to use the account as a publisher or an author/group of authors. If you select that you're an author, the following question comes up: "Will you issue 1099s to yourself and/or to any other authors whose books were sold through this account in order to report royalties earned to the IRS?"

I'm not sure what they mean by that. I know that Amazon and Smashwords are supposed to provide tax documents for you so that you can report your earnings on your taxes. But I don't know what ARe means by asking if I will be issuing a 1099 to myself.

I'm also not entirely clear on the difference between listing myself as a "publisher" or an "author/group of authors." I'm sort of both in this instance, though I don't own a publishing house or anything.

Thanks. I feel stupid that I couldn't figure this out by looking on their website and googling, but I really wanted to see what other people have done.

Cathy C
12-13-2014, 05:17 PM
A publisher is required to issue an IRS 1099 to its authors when payments to them exceed $600. When it's a group of authors, such as in an anthology, the "editor" or lead author is responsible to receive the payments from the website and then pay it over to the natural person(s) who will receive the income.

The website is telling you that if a pen name is more than one taxpayer, they will not pay each person individually. They'll only pay one person.

Word of warning to writing teams or anthology lead authors.

DancingMaenid
12-13-2014, 11:31 PM
Thanks for the explanation. I was thinking it might be something like that, but didn't want to take it for granted.

So, in my situation, I should put "no", right? Should I still say that I'm using the account as an author (as opposed to a publisher)?

Cathy C
12-14-2014, 03:18 PM
It could be that they don't issue 1099s at all. I can understand why they wouldn't, because it implies a level of duty that would create a employer/employee agency on them, instead of a seller/vendor one. I think if you use them, you should be prepared to issue your own 1099 from you, as the business owner, to you, the author. Even if it's less than $600, just plan to do it. :)