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Permlink Replies: 25 - Pages: 2 [ 1 2 | Next ] - Last Post: Nov 21, 2014 2:48 AM Last Post By: Sean
nonfictionman

Posts: 86
Registered: 03/03/11
Would Really Appreciate Some Help RE: Tax Withholding
Posted: May 8, 2013 9:02 AM
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Hi everybody,

I'm UK based and for some time Amazon has been withholding 30% of my US earnings and giving them to the IRS. I'd been meaning to get it sorted for some time and didn't as a result of both fear and laziness. With so much information out there, some of it conflicting, whenever I attempted to study the process I got seriously put off and put it aside again.

I've finally completed the laborious process of getting an ITIN number after discovering that with an EIN, whilst the easiest way of getting Amazon to stop withholding money, you cannot claim back previously withheld taxes with an EIN. Apparently you can with an ITIN (I sure hope so!).

So, I'm armed with my ITIN, Amazon have been sent my ITIN, what I need help with is the final hurdle - the part which seems to lack information online. What form/process do I now need to go through to get back my withheld cash? I have a form 1042-S which shows withholding credit of $3990.74 which is a fair old chunk of change for me!

Thanks in advance to anybody who knows how or has been through this process!
notjohn

Posts: 15,239
Registered: 01/06/10
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: May 8, 2013 2:02 PM   in response to: nonfictionman in response to: nonfictionman
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You get a refund (up to $3600) by filing form 1040-NR the following spring.
RWilliams

Posts: 4
Registered: 04/29/13
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: May 8, 2013 3:57 PM   in response to: nonfictionman in response to: nonfictionman
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Is there not a tax treaty between the US and UK? There is between the US and Australia.
Given that you would have to declare the foreign income in your UK return, you should also get a tax credit for the tax withheld by the IRS, which may or may not make the whole ITIN question redundant.
eli123

Posts: 1
Registered: 09/16/10
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Aug 24, 2013 9:21 AM   in response to: RWilliams in response to: RWilliams
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You can check website www.audiosolutionz.com and i hope you can find some answer there.
it conducts lot of live audio conferences & webinar session on various subject matters.

I hope it helps.

Thanks
G
Alan Boyer

Posts: 1
Registered: 11/22/13
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Dec 12, 2013 1:18 PM   in response to: eli123 in response to: eli123
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check out the following website on personal finance

http://www.abmoneycoaching.com/products/

There is an eBook and eClasses on W-4 withholding.

Hope that helps.
Graeme

Posts: 39
Registered: 03/24/13
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Dec 12, 2013 1:31 PM   in response to: nonfictionman in response to: nonfictionman
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This is going to sound strange but when everyone starts talking about tax I don't have a clue, I know we need to pay our taxes but to be honest I had to ask my mum and dad about the tax interview forum. I hope I'm not the only one here who thinks this. I feel like everyone starts talking a different language.

Hope you get that one sorted nonfictionman.


My new book here.

http://www.amazon.co.uk/Small-Book-Inspiration-Non-Fiction-ebook/dp/B00H87B58Y/ref=sr_1_7?s=books&ie=UTF8&qid=1386719883&sr=1-7

wirdmonger

Posts: 1,074
Registered: 01/07/12
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Dec 12, 2013 1:59 PM   in response to: nonfictionman in response to: nonfictionman
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Nonfiction man I'm about to do this too. I know I saved a link somewhere that gave two UK ways to do it. One if you ahvea small business and one if you are sole trading. I knew I had to do it but its taken the motivation of holding a cheque in my hand with a chunk missing to actually get around to it!
juniewint

Posts: 696
Registered: 09/16/12
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Feb 16, 2014 5:36 AM   in response to: notjohn in response to: notjohn
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Finally figured out where you got your name, NotJohn. When you log in to Kindle it asks, Not John? From this I have deduced that your real name IS John. That's the extent of today's brain exertion.
pinkdinky

Posts: 268
Registered: 11/11/11
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Sep 4, 2014 6:22 AM   in response to: nonfictionman in response to: nonfictionman
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I came across this website yesterday that explains 'HOW TO' I hope this helps as I have yet to do it. http://catherineryanhoward.com/2012/02/24/non-us-self-publisher-tax-issues-dont-need-to-be-taxing/
M.R. Brazear

Posts: 4,847
Registered: 07/18/13
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Sep 4, 2014 7:31 AM   in response to: juniewint in response to: juniewint
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juniewint wrote:
Finally figured out where you got your name, NotJohn. When you log in to Kindle it asks, Not John? From this I have deduced that your real name IS John. That's the extent of today's brain exertion.
I think I will go and change my name to Not Margaret! As to the brilliant idea of claiming the witholding back from the HMRC, I just wonder if it would work. Sorry, Mr Taxman, you can get the other 2000 quid from the IRS.
Marcela Martine...

Posts: 236
Registered: 01/15/13
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Sep 4, 2014 11:43 PM   in response to: M.R. Brazear in response to: M.R. Brazear
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M.R. Brazear wrote:
juniewint wrote:
I think I will go and change my name to Not Margaret! As to the brilliant idea of claiming the witholding back from the HMRC, I just wonder if it would work. Sorry, Mr Taxman, you can get the other 2000 quid from the IRS.

I think you need to talk to a tax person over there. In the US at least you are not allowed to take a credit for income tax paid to another country IF you can get a refund from that country. Tax laws are fill of those kinds of pitfalls. Just saying.
rufuscobb

Posts: 126
Registered: 12/01/11
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Sep 5, 2014 3:36 AM   in response to: nonfictionman in response to: nonfictionman
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Sorry nonfictionman, this isn't a reply to your post but i just wanted to add something to the conversation. I should start out by saying I am a UK author and have not yet applied for an ITIN or an EIN, so am subject to 30% tax withholding.

I got an email from Createspace this morning saying that I needed to fill out my tax interview at Createspace otherwise they would stop selling my books. I went the to site and filled out the form. At one point it asked me if I had a UK tax reference, I do as I have been doing my own tax returns for years, so I put it in. It is called a Unique Tax Reference (UTR) and as far as I know every taxpaying UK citizen should have one (I'm not claiming that as a fact - it just seems to me to be obvious that they would, like a NI number) but many people may not be aware of theirs unless they have dealt with the tax people directly, as I have.

Anyway, I competed the form and clicked on submit. It accepted it and told me that my taxwitholding rate was now 0%. Hang on a minute, I thought, have I circumvented the system? So, I logged on here at Amazon KDP and went through the tax form again. Same thing, it allowed me to put in my UTR and at the end it told me that my tax withholding rate was now 0% and I'm 99% certain that before i started to fill out the form it said 30%.

No ITIN, no EIN. Maybe they have changed the rules and are now accepting UK tax codes - which would make sense as they have a treaty with our country. I was curious if this was the case as at Audible.com it says all you need to join and get your books recorded is a US or UK tax code - which seemed to imply you didn't need any number from the IRS. Could this be the answer to our prayers?

Anyway, I will have to wait and see what the outcome is, the problem being that I don't sell enough in the US to generate any income - one book last month and that was the first for many months - so will have to wait a while to get a proper reading of the situation.

Rufus

Edited by: rufuscobb on Sep 5, 2014 3:43 AM
M.R. Brazear

Posts: 4,847
Registered: 07/18/13
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Sep 5, 2014 4:02 AM   in response to: rufuscobb in response to: rufuscobb
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rufuscobb wrote:
Sorry nonfictionman, this isn't a reply to your post but i just wanted to add something to the conversation. I should start out by saying I am a UK author and have not yet applied for an ITIN or an EIN, so am subject to 30% tax withholding.

I got an email from Createspace this morning saying that I needed to fill out my tax interview at Createspace otherwise they would stop selling my books. I went the to site and filled out the form. At one point it asked me if I had a UK tax reference, I do as I have been doing my own tax returns for years, so I put it in. It is called a Unique Tax Reference (UTR) and as far as I know every taxpaying UK citizen should have one (I'm not claiming that as a fact - it just seems to me to be obvious that they would, like a NI number) but many people may not be aware of theirs unless they have dealt with the tax people directly, as I have.

Anyway, I competed the form and clicked on submit. It accepted it and told me that my taxwitholding rate was now 0%. Hang on a minute, I thought, have I circumvented the system? So, I logged on here at Amazon KDP and went through the tax form again. Same thing, it allowed me to put in my UTR and at the end it told me that my tax withholding rate was now 0% and I'm 99% certain that before i started to fill out the form it said 30%.

No ITIN, no EIN. Maybe they have changed the rules and are now accepting UK tax codes - which would make sense as they have a treaty with our country. I was curious if this was the case as at Audible.com it says all you need to join and get your books recorded is a US or UK tax code - which seemed to imply you didn't need any number from the IRS. Could this be the answer to our prayers?

Anyway, I will have to wait and see what the outcome is, the problem being that I don't sell enough in the US to generate any income - one book last month and that was the first for many months - so will have to wait a while to get a proper reading of the situation.

Rufus

Edited by: rufuscobb on Sep 5, 2014 3:43 AM

I had the same thing from CS yesterday and noticed they were asking for EIN, ITIN or UK tax reference. Also, it is a new thing to be able to do the CS form online, as before you had to print it out and send it. Since I put my US number into kdp, I have not been subject to witholding at CS either. It is good for everyone if they are now accepting UK numbers.

It is also a new thing to have the 0% confirmed straight away. I had to wait a few days before that happened.

Edited by: M.R. Brazear on Sep 5, 2014 4:02 AM
villagoise

Posts: 3,082
Registered: 11/13/11
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Sep 5, 2014 4:12 AM   in response to: nonfictionman in response to: nonfictionman
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Go to the link pinkydink provided and ignore notjohn.

Also this link http://ein-for-amazon.blogspot.fr/

You can also do a forum search for EIN and you'll find several threads relating to the subject of UK authors and US tax withholding.
Marcela Martine...

Posts: 236
Registered: 01/15/13
Re: Would Really Appreciate Some Help RE: Tax Withholding
Posted: Sep 5, 2014 5:19 AM   in response to: M.R. Brazear in response to: M.R. Brazear
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M.R. Brazear wrote:
I had the same thing from CS yesterday and noticed they were asking for EIN, ITIN or UK tax reference. Also, it is a new thing to be able to do the CS form online, as before you had to print it out and send it. Since I put my US number into kdp, I have not been subject to witholding at CS either. It is good for everyone if they are now accepting UK numbers.

It is also a new thing to have the 0% confirmed straight away. I had to wait a few days before that happened.

Edited by: M.R. Brazear on Sep 5, 2014 4:02 AM

There is a new law that came into effect on the US on July 1st called FATCA. The F stands for Foreign. This law changed lots of stuff. Not needing a US tax id for some things is one of them, but I thought royalties were not among the types of income that this would apply to. Apparently it is..... interesting.

Also interesting is that CreateSpace still talks about sending paper forms in its help pages. I guess they haven't updated them yet

Edited by: Marcela Martinez Millan on Sep 5, 2014 5:19 AM

Edited by: Marcela Martinez Millan on Sep 5, 2014 5:20 AM

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