Writing 101: What You Should Know About Taxes
It's March...do you know where your income is coming from? Before you break the federal law, figure out what you should know about taxes as a self-published author. Two Sides to Every Coin Once you sell a certain amount of books through any venue, from Amazon to Smashwords, you will receive a check in the mail or an automated payment of some sort; it all depends on the payment information you've submitted. When this happens, it's an amazing day. You earned money as an author , and you are a success. And you are liable for it as a taxpaper. Because here's what you may not know about self-publishing: you're doing it as an independent contractor. What does that mean? It's pretty simple. You have sold something, a product, on Amazon (or B&N, or whatever). Amazon has taken their cut of the profits and now they are giving you what you have earned as the author. But they have not taken taxes out . Amazon is not your employer. You didn't fi...