Taxes and Authors
- By: Jessica Faust | Date: Oct 25 2011
Can you please tell me if a publisher takes care of income tax in royalty payments? Or is paying tax the job of the author or agent?
As an author you are not an employee of the publisher, you are an independent contractor. Therefore you are responsible for filing your own taxes and paying them (quarterly). Typically, all payments are sent through your agent and issued from your agent, less her commission. Therefore, at tax time you should receive a 1099 from your agent that shows your actual earnings. And don’t forget to save those receipts for things like your computer, Internet access, printer ink, or the ereader you use. All of those would be considered business expenses.
**Quick disclaimer. I’m not even close to a tax attorney so before filing make sure you check with your accountant on what you really can write-off and what you can’t.