KDP University: Amazon Education for Authors

KDP UNIVERSITY

Amazon is offering a session on “What KDP authors & publishers should know about taxes” on Thursday, February 7, 2019, from 3 p.m. to 4 p.m. Pacific time.

Visit the KDP University to register for this or other events. Click the Learn More link under Webinars. Select an event. Click Register. Fill out the form and press Submit.

Check out the upcoming events, such as “Developing a Promotional Strategy” on February 28 or “How to create, review, & optimize your Amazon Advertising campaign” on March 7.

At KDP University, you can find a variety of resources for authors who are self-publishing, including videos and formatting guides.

Write Happy, Be Happy

Chris McMullen

Author of the Improve Your Math Fluency series of math workbooks and self-publishing guides

Sorting out your Amazon 1099-MISC forms from KDP and CreateSpace (Tax Year 2015)

Taxes

AMAZON KDP & CREATESPACE 1099-MISC TAX FORMS (YEAR 2015)

I received 12 different 1099-MISC forms for tax year 2015 from Kindle Direct Publishing (KDP), and 3 more 1099-MISC forms from CreateSpace. I obtained my KDP tax forms online, but received my CreateSpace forms in the mail (on February 5).

Check yours against my list below to see if you’ve received them all.

Also, my list below will help you check which international marketplace each form corresponds to.

Verify that the amounts are correct. Occasionally, a mistake is made. (One year, they issued replacements a few weeks after mailing the originals.)

Note that, contrary to rumor, there is NO limit of $600 for book royalties. For book royalties, the limit is $10, meaning that if you earned at least $10 in royalties, you should account for this in your tax return. Amazon will have sent the information to the IRS. Most authors can use Schedule C-EZ, but if you earned too much, you need Schedule C instead, and also if you earn enough, you need to file SE (in addition to Schedule C) for self-employment tax (but if you file SE, there is another place to deduct a little on the 1040). You can subtract reasonable business expenses. (If you feel that writing is a hobby, don’t go by your feeling: There is a chart on the IRS website that can help you determine whether or not the IRS will agree with you about this.) Note that I’m NOT an accountant or tax attorney, so I’m not qualified to advise you on your taxes. You should consult a qualified tax professional for help. I’m just trying to help you find all of your forms and get you pointed in the right direction, and if you do hire a tax professional, you should try to follow along to ensure that they aren’t making any mistakes.

Here are the 12 different 1099’s that I received from KDP:

  1. Amazon Digital Services (United States)
  2. AMEU – UK Digital Services (United Kingdom)
  3. Amazon Digital Services CA (Canada)
  4. Amazon Australia Svcs (Australia)
  5. Amazon Mexico Svcs (Mexcio)
  6. Amazon Media EU SARL (NL) (Netherlands)
  7. Amazon Media EU SARL (IT) (Italy)
  8. Amazon Media EU SARL (ES) (Spain)
  9. Amazon Europe Holding Tech (France and Germany)
  10. Amazon Servicos de Varejo (Brazil)
  11. Amazon Digital South Asia (India)
  12. Amazon Svcs International (Japan)

Here are the 3 different 1099’s that I received from CreateSpace:

  1. On-Demand Publishing (United States)
  2. AMEU – UK Digital Services (United Kingdom). It’s for print sales even though it says Digital, provided that you see CRTSPACE in the bottom left box.
  3. Amazon Europe Holding Tech (continental Europe)

You may have yet another 1099 if you use Amazon Associates, for example. This 1099 is designated ASSOC in the bottom left box.

How do I know which marketplace corresponds to which 1099? I visited KDP and CreateSpace and totaled up all the payments I received in USD from each marketplace in tax year 2015, and checked these numbers against my 1099’s. You should do the same, just to make sure there were no mistakes.

When you log into KDP, click Reports, then click Payments. Next, choose the appropriate marketplace from the dropdown menu. Be sure to look at the Date column, not the Sales Period, and look for 2015.

Write happy, be happy. 🙂

Chris McMullen

Copyright © 2016

Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers

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