Most countries tax their citizens. Lots of people complain about that, but the world would stop functioning if goverments could not charge taxes. They're used to create roads and repair bridges, among many other important tasks, so we all pay them more or less willingly. And if you've been earning money as a self-published author, you may be required to pay them as well.
Taxing Your Income
By law, you are required to give the government a certain percentage of your earnings. When you work and receive a paycheck, these taxes are automatically deducted from that paycheck. At the end of the year you may even receive a tax return from paying too many taxes throughout the year.
But when you earn income through self-publishing, taxes are not taken out because you do not receive a paycheck. You are not someone's employee; you are receiving royalties. Because this money is not taxed, legally it is labeled as self-employment income. And when you receive a self-employment income, your tax burden increases because now you have to claim that income and pay the necessary taxes.


















