The topic of self-publishing and taxes is something I recently learned about, as I finally filed my income tax yesterday. First off, note that I’m a Canadian, so this post may not apply if you’re American. Secondly, note that the H&R Block rep I spoke with was absolutely awesome, so much so that I ended up giving him a copy of my book, which he promised to read and tell all his friends about. Yay networking!
Anyway, I’m Canadian, and the assisted publishing company I went through to publish my book — iUniverse — is an American company. Last year, I made approximately $500 in royalties off my book (feel free to gasp in awe or shake your head in pity, depending on your own self-publishing experience). I figured such a small amount would be easy enough to do taxes for. I was wrong.
So I went to H&R Block, which is one of those accounting firms who set up booths in the mall and do basic tax returns for good prices. Fair enough — I have no idea how to do my own taxes, and my return wasn’t particularly complicated this year. Or so I thought. You see, if you’re Canadian, and you need to file foreign income, the rate for the return goes way up. We’re talking double the price. Gah!
Now, I don’t know how this changes if you do your taxes yourself, or go via a professional business accountant (the ones who charge obscene rates by the hour). But it’s something to be aware of!
So the take-away from this post is:
If you’re self-publishing through a foreign company, you’re going to have to claim foreign income on your tax return! Dum dum dummmmmm!
That’s all for today. Have a lovely Wednesday, everyone, and enjoy the unrelated media below!