Why does Booktango need my Social Security number?
What tax information can Booktango provide for me?
When does Booktango mail the 1099-MISC or 1042-S?
Why didn’t I get a 1099-MISC this year?
If I was paid under $10.00 in royalties, do I have to report it on my income tax?
Why is the income stated on my 1099-MISC or 1042-S form not equal to the sum of my royalty payments for the calendar year?
When will Booktango post Quarter 4 royalties so I can complete my income tax return?
Tax Form Submisison
I submitted a Form W-9 or a Form W-8BEN in the past. Why am I being asked for it again?
I opted-out of submitting my tax information. Why does Booktango continue to request my tax information?
If my company should receive the royalties instead of me, as the author, what do I need to do?
My company’s W-9 was accidentally added to my individual account (or vice versa). How can I correct this?
International Authors
I am an international author, what do I need to do regarding the tax forms and ID numbers?
How do I know if my country has a tax treaty with the United States that allows me to claim a lower rate of withholding?
What if I don’t have an ITIN?
What if I don’t have an EIN?
How do I file Form W-7 with the IRS (to obtain an ITIN)?
1099-MISC
What is a 1099-MISC form?
Who will receive a 1099-MISC form?
What if there is an error on the 1099-MISC form? Is it too late to make changes?
The amount on my 1099-MISC form doesn’t match my checks; what is wrong?
One of my checks was not received during the tax year. May I request a corrected 1099-MISC?
Why isn’t there a “Recipient’s Identification Number” on my 1099-MISC form?
The “Recipient’s Identification Number” on my 1099-MISC form is incorrect; what do I do?
The “Recipient’s name” on my 1099-MISC form is incorrect; what do I do?
The “Recipient address” on my 1099-MISC form is incorrect; what do I do?
I cannot locate my 1099-MISC form; how can I request a copy?
Where can I find more information about my tax forms?
How much royalty do I earn for each e-book I sell?
100%
You will receive every penny of your e-book sales through the Booktango Bookstore which means every dollar you generate is yours. You will receive 100 percent of the net payments if sold through another channel.
Royalties will not be paid on copies provided free of charge.
The exact amount you earn from each e-book you sell could differ depending on whether the sale is made directly from Booktango or through another retailer. Outside retailers will take a cut of your sale, which results in lower royalties for you. Below we've outlined two different scenarios: one royalty payment if a reader purchases a book from Booktango and one royalty payment if a reader purchases a book from another retailer.
Here's an example of a common sales transaction if you publish your e-book with Booktango:
The List Price for your book is $4.99.
The Retailer/Transaction Fee varies from vendor to vendor. (Booktango's bookstore fee is 0% of the list price.)
Your Royalty Rate through the Booktango Bookstore is 100%. (You get all of the sales.)
Your Royalty Rate through channel partners (Amazon, Kobo, Apple, etc.) is 100% of net.
How much royalty you would earn if you made a sale through Booktango:
Booktango Bookstore
List Price - Retailer/Transaction Fee = Net Sale x Royalty Rate = Royalty Earned
$4.99 - $0 = $4.99 x 100% = $4.99
How much royalty you would earn if you made a sale through an outside retailer:
Sample Retailer
List Price - Retailer/Transaction Fee* = Net Sale x Royalty Rate = Royalty Earned
$4.99 - $2.19 = $2.80 x 100% = $2.80
* Retailer transaction fees differ by retailer and currently range from 20%-65%. Some vendors also charge an additional fee per sale of $0.25 per book. For retail sales, Booktango does not take any of this fee — it all goes to the retailer.
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Where do I see my sales?
ONLINE REPORTS
We'll help you track sales and royalty information in online reports in your account dashboard on the Booktango website.
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What information is available in the online sales and royalty reports?
LOTS
In the Reports tab of your Booktango account dashboard, you will be able to view a variety of information regarding sales of your e-book(s) and royalties earned. You can export these reports as Excel or PDF files for your personal records.
- Sales Report: In the "Sales Report," we do our best to provide you with up-to-date information regarding your e-book sales. The goal here is to give you a good estimate of how and where your e-book is selling. You can sort sales data based on title, format, retailer, sale date, etc. You can also filter the sales data to create further customized reports.
We update this report for you as frequently and as accurately as we can. However, please note that because external retailers operate on their own schedule, it can take time for them to report their sales information back to us. This means your online report cannot be updated in real time for each sale you make.
- Royalty Report: In the "Royalty Report," we show you your finalized e-book sales for each quarter.
If you want to learn more, watch our royalty reporting tutorial.
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How long does it take for a sale to be listed in my online "Sales Activity Report"?
IT DEPENDS
The information in the “Sales Report” is updated throughout the quarter to give you an idea of how and where your book is selling. We deliver sales information to you as soon as we can, however this data cannot be updated in real time and may not reflect finalized information.
The time it takes a sale to be listed in your sales report is determined by the type of sale:
| Sale type |
Time until listed |
| Booktango Bookstore |
72 hours |
| Retail sales (e.g., Amazon.com) |
Four weeks or more |
Please note: External retailers — Apple, Amazon, Barnes and Noble, etc. — operate under their own schedules, and Booktango cannot control the frequency with which they report sales information.
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How often is my "Royalty Report" updated?
EVERY QUARTER
Because external retailers operate on their own schedule, it can take time for them to report their sales information back to us. This means it may take up to 60 days after the close of the royalty quarter for sales information to be finalized and posted on your "Royalty Report" in your account.
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When is my EFT information updated?
We update new or modified EFT information on January 31, April 30, July 31 and October 31. To ensure your royalty funds are transferred to your preferred account, please make sure your account information is accurate prior to these dates. Changes made after these dates will be reflected on the following pay cycle.
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Will I still see a royalty statement if there were no sales in a quarter?
YES
Once the statement for a quarter in which you have made no sales has been finalized, you will see the reporting period for that quarter available in the dropdown report menu with $0.00 indicated in parenthesis. If you choose to run that report, you will see a message that says “No sales reported for the period selected.”
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Can you provide me with the names of customers who bought my book?
NO
Industry practice, consumer privacy rules and Booktango business policy do not allow us to provide this information to you or to anyone else. While we and our retail partners protect the identities of individual customers, we do provide you with as many details as we can in your "Sales Report."
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I have a specific question about my royalty and sales reports. Where can I go to get the answer?
If you have a specific question that is not addressed in our Frequently Asked Questions, please use contact us at 877-445-8822 or customersupport@booktango.com.
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I need to change my address. How can I do that?
YOUR BOOKTANGO PROFILE
You can easily change your contact information or email address at any time by logging in to your Booktango account dashboard and visiting the Profile tab. Don’t worry; the information in your Profile is not visible to other Booktango users.
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When am I paid royalties?
EACH QUARTER *
First Quarter: January 1 to March 31 (checks available in late May)
Second Quarter: April 1 to June 30 (checks available in late August)
Third Quarter: July 1 to September 30 (checks available in late November)
Fourth Quarter: October 1 to December 31 (checks available in late February)
* You are paid for the books sold in the given quarter time frame once you reach the threshold of $50.00 or more.
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How do you pay me?
ELECTRONIC FUNDS TRANSFER, DIRECT DEPOSIT OR CHECK
By default, your book sales royalties are paid by mailed check.
Or, you can opt in to the Electronic Funds Transfer (EFT) by adding your bank account information to your Booktango account. Simply log-in to your account and click on "Profile," then under "Tax Information" click on "Update Electronic Payment Information." Or, you can fill out and returning the direct deposit form (download direct deposit form PDF).
We update new or modified EFT information on January 31, April 30, July 31 and October 31. To ensure your royalty funds are transferred to your preferred account, please make sure your account information is accurate prior to these dates.
With EFT or direct deposit, instead of receiving mailed checks, your royalty payments will be deposited into your bank account. Please note: If you are paid by check, a $5.00 check fee will be deducted from your royalties; however, there is no fee for direct deposit or EFT payments.
If you choose to be paid by check, you will start receiving royalty payments the first quarter that your royalty earnings for a book reach $50.00 or more. We will continue to hold your royalties until the balance due to you is $50.00 or more, as stated in our publishing terms and conditions agreement. If you choose to be paid by EFT or direct deposit, you will start receiving royalty payments the first quarter your royalty earnings reach $1.00.
For each payment option, royalties are paid quarterly (four payments per year).
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How long does it take to receive payment?
TWO MONTHS AFTER QUARTER CLOSES
It takes about two months after the quarter closes until the royalty payments are sent to you. First Quarter checks are mailed in late May, Second Quarter checks are mailed in late August, Third Quarter checks are mailed in late November, and Fourth Quarter checks are mailed in late February. (See specifics in the FAQs above)
The two month timeframe is because we do not receive the reporting sales information until 30 days after the close of the quarter. Then, we need additional time to verify, compile and send the information to you.
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Can my royalty check be split between a co-author and myself?
YES
By default, only you, the author/account holder, are paid royalties. However, you can split your royalty payments between two or more co-authors if you prefer. If you would like to arrange this, please contact a Booktango representative or use our Live Chat feature.
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Can I arrange for someone else to receive my royalty payments?
YES, BUT...
Only if you transfer the entire rights of your agreement with Booktango to that person. That person will also hold the copyright for the book. If you would like to arrange this, please contact us.
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Am I paid royalty when I purchase copies of my own book?
YES
Any purchases you make of your own e-book — whether through a retailer or our website — will be treated as any other sale of your e-book. Thus, you will most certainly receive royalty payments for each copy that you buy. In the end, it's basically like you're receiving an author discount.
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I need to update my tax information. How can I do that?
BOOKTANGO ACCOUNT
You can fill out your W-9 or W-8BEN online through your Booktango account. Simply log-in to your account and click on Profile to update your information.
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TAX REGULATIONS
We require your Social Security number to comply with the government’s tax regulations. Since you have the opportunity to earn additional income from book sales, the government requires that you pay taxes on the total earnings. The W-9 form allows you to provide a Taxpayer Identification Number, or TIN. If you are publishing your book under your own name or a pen name, your TIN is your Social Security number. If you are publishing under a business name, or you want your royalty check to be addressed to a business, you can enter your employer identification number instead of your personal Social Security number.
If you do not supply your taxpayer ID number, we are required to withhold taxes at the rate of 28 percent of total earnings.
If you supply us with your taxpayer ID at a later date, we cannot return the withheld tax money because we do not retain it — it is passed on to the government by law. You can speak to a tax professional about how to report this at the end of the tax year in order to receive a tax return for any additional amount that you are due.
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General Tax Information
Booktango will mail a Form1099-MISC to each U.S. author who earned more than $10.00 during the calendar year. The income and withholding represent royalties from Quarter 4 of the previous year through Quarter 3 of the Form 1099-MISC year. The form will be mailed by Jan. 31, and should be delivered to the author in February. This form is required by the Internal Revenue Service (IRS) to report royalty income and withholding. If the author was not paid any monies during the calendar year, then he or she will not receive a Form 1099-MISC. The IRS requires Booktango to have the form mailed/postmarked by Jan. 31, not delivered by Jan 31.
International authors will receive a Form 1042-S instead of a Form 1099-MISC for the royalties earned and the amount withheld during the calendar year. The Form 1042-S will be mailed by March 15.
The IRS requires Booktango to have a Form W-9 or Form W-8BEN on file for each author who may earn royalties. The tax form must include the individual or company’s U.S. Taxpayer Identification Number (SSN, EIN, or ITIN). If the author refuses to provide the form or the digital equivalency, Booktango will begin withholding taxes at the rate of 28% for U.S. citizens (or resident aliens) or 30% for nonresident aliens living outside the U.S. in accordance with U.S. tax law.
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What tax information can Booktango provide for me?
Booktango will provide a Form 1099-MISC or Form 1042-S stating royalties earned during a calendar year and the amount of withholding, to assist you in accurately reporting your royalty income. For further information please consult your professional tax consultant.
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When does Booktango mail the 1099-MISC or 1042-S?
By law Booktango is required to mail the previous year’s Form 1099-MISC by Jan. 31 of the current year. For non-U.S. persons, the previous year’s Form 1042-S will be mailed by March 15 of the current year.
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Why didn’t I get a 1099-MISC this year?
If you were paid less than $10.00 in the previous calendar year, you will not receive a 1099-MISC.
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If I was paid under $10.00 in royalties, do I have to report it on my income tax?
For any questions on reporting your income to the IRS, please consult your professional tax consultant.
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Why is the income stated on my 1099-MISC or 1042-S form not equal to the sum of my royalty payments for the calendar year?
The tax form reports the total royalties income earned over the calendar year and taxes withheld. “Royalties income earned” is the amount of your checks before withholding. Your payments equal the difference between your total income on the form and any taxes withheld.
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When will Booktango post Quarter 4 royalties so I can complete my income tax return?
Quarter 4 royalties will not be paid to you until the following calendar year; therefore, Quarter 4 royalties will be included on the Form 1099-MISC or 1042-S you receive the following year. Please refer to the Form 1099-MISC or 1042-S you may receive from Booktango to learn the amount of money that has been reported as royalty income (and withholding) for tax filing purposes. Form 1099-MISC will be mailed by Jan. 31of the current year, and Form 1042-S will be mailed by March 15.
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Tax Form Submission
I submitted a Form W-9 or a Form W-8BEN in the past. Why am I being asked for it again?
If you receive a request from Booktango to submit your tax information, then we do not have your Form W-9 or W-8BEN in our system, and we need you to resubmit the appropriate form. We may not be able to assign a received tax form to your account due to an issue with matching your tax form with your author account, the tax form may include an incomplete address, or it could be another reason.
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I opted-out of submitting my tax information. Why does Booktango continue to request my tax information?
The IRS requires that we have a complete tax Form W-9 or W-8BEN on file even if an author has opted-out of submitting tax information. We are required to request the tax form annually.
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If my company should receive the royalties instead of me, as the author, what do I need to do?
First, an account for your company must be created in our system. To have an account created for the company, speak to customer support about a reassignment of rights. Second, a Form W-9 needs to be filled out for the company using the company EIN for the tax ID. Third, the company’s W-9 must be submitted either online through the company’s Booktango account, or by mail (be sure to reference the company’s Booktango account number).
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My company’s W-9 was accidentally added to my individual account (or vice versa). How can I correct this?
If your company’s W-9 was added to your individual account, please correct by submitting your individual W-9 and referencing your individual Booktango account. Also, make sure that your company’s W-9 is connected to your company’s account. If your individual W-9 was added to your company’s account, please correct by submitting your company W-9 and referencing your company Booktango account.
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International Authors
I am an international author, what do I need to do regarding the tax forms and ID numbers?
You will need to submit a Form W-8BEN to Booktango. When filling out the form, please remember to include your IRS issued U.S. taxpayer identification number (ITIN for individuals, EIN for companies), your author account number, your country of citizenship, and claim to a lower tax treaty rate (if applicable). Even if you don’t have a U.S. taxpayer identification number yet, you should still submit an initial Form W-8BEN to establish that you are not a U.S. person. Submit the Form W-8BEN once you have a U.S. taxpayer identification number in order to claim a reduced rate or exemption from withholding if your country has an income tax treaty with the United States.
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How do I know if my country has a tax treaty with the United States that allows me to claim a lower rate of withholding?
If applicable, you may claim a reduced rate of withholding as a resident of a foreign country with which the United States has an income tax treaty. See the Tax Treaty Tables within Internal Revenue Service (IRS) Publication 515 (see the helpful links below), “Withholding of Tax on Nonresident Aliens and Foreign Entities”, under “Copyrights” for your country’s tax treaty rate. Submit Form W-8BEN when requested by Booktango whether or not you are claiming a reduced rate of withholding.
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What if I don’t have an ITIN?
If you do not have a Social Security Number (SSN) and are not eligible to get one, you must obtain an Individual Taxpayer Identification Number (ITIN) to claim your country’s reduced tax treaty rate (if applicable). To apply for an ITIN, file Form W-7, “Application for IRS Individual Taxpayer Identification Number” (see helpful links below) with the IRS. It usually takes 4-6 weeks to receive an ITIN from the IRS.
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What if I don’t have an EIN?
Companies may apply for a U.S. Employer Identification Number (EIN) by filing a Form SS-4 with the IRS.
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How do I file Form W-7 with the IRS (to obtain an ITIN)?
The W-7 tax form needs to be submitted by you, the author, to the IRS directly. This form is not processed or submitted by Booktango. Booktango can supply you with a support letter that will need to be submitted with Form W-7. Once this process is completed, the IRS will supply you with an ITIN. The ITIN will need to be included on the W-8BEN form that can be completed online through your secure author account or sent to Booktango directly. If you require a W-7 support letter, please make the request with customer support and be sure to include your author account number, legal name, and mailing address.
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1099-MISC
What is a 1099-MISC form?
Form 1099-MISC is used to report royalty income and backup withholding. The form is for each person who earned at least $10 in royalties during the past calendar year.
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Who will receive a 1099-MISC form?
Authors who have been paid at least $10 in royalties during the past calendar year will receive a 1099-MISC form. Form 1099-MISC applies to U.S. residents and U.S. resident aliens ONLY and is not sent to nonresident aliens or foreign persons. Nonresident aliens and foreign persons receive Form 1042-S.
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What if there is an error on the 1099-MISC form? Is it too late to make changes?
1099-MISC forms are not due to be filed with the IRS until March 31, so we still have time to make changes if necessary. Even after that, we can still file corrected forms with the IRS, so do not panic if something might be wrong.
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The amount on my 1099-MISC form doesn’t match my checks; what is wrong?
The amount of royalties reported on the 1099 is the gross amount of royalties paid before any backup withholding. The royalty amount should match the amount of royalties on your statements from Q4 of the previous year to Q3 of the 1099 year, plus any iPad or offset distribution royalties wherever applicable. Subtracting the withholding (box 4) from the royalty income (box 2) should equal the total monies paid to you during the 1099 year. If after careful analysis, you still believe there is an error, please contact Booktango customer support.
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One of my checks was not received during the tax year. May I request a corrected 1099-MISC?
If the check was sent to the address on-file during the tax year, the 1099-MISC must include the income (and withholding if applicable) associated with the payment. If the check has still not been received, please contact customer support and request a re-cut.
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Why isn’t there a “Recipient’s Identification Number” on my 1099-MISC form?
The “Recipient’s Identification Number” is the box that should include your U.S. Taxpayer Identification Number (TIN). U.S. persons should submit a Form W-9 to Booktango to report their Social Security Number (or EIN for a business). If we receive the update before the IRS filing deadline, March 31, we can guarantee that the updated form with the new identification number will be submitted to the IRS. We encourage online submission of the Form W-9 through your secure author account.
Please note: authors may incur a penalty from the IRS for failing to report their TIN or for providing an invalid TIN.
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The “Recipient’s Identification Number” on my 1099-MISC form is incorrect; what do I do?
Submit a Form W-9 to provide Booktango with your corrected Social Security Number (or EIN for a business). If we receive the update before the IRS filing deadline, March 31, we can guarantee that the updated form with the new identification number will be submitted to the IRS. We encourage online submission of the Form W-9 through your secure author account.
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The “Recipient’s name” on my 1099-MISC form is incorrect; what do I do?
The recipient name on your Form 1099-MISC is the person or entity who earned royalties income during the tax year. In most cases, the name must remain unchanged.
However, if you were the recipient of the royalty income during the year and there is a spelling error with the last name, then we may be able to issue a correction before filing with the IRS on March 31. To request a 1099-MISC name correction, contact Booktango customer support.
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The “Recipient address” on my 1099-MISC form is incorrect; what do I do?
The IRS does not match addresses. If you have received the form, then there is no need to request a new form with an updated address. If you would like to update your address for future mailings, please contact Booktango customer support.
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I cannot locate my 1099-MISC form; how can I request a copy?
Please contact Booktango customer support and request a copy of your 1099-MISC form. Be sure to indicate the tax year. The copy can be e-mailed with the Taxpayer Identification Number masked, or sent by the post if necessary.
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Where can I find more information about my tax forms?
Check out these helpful links:
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