What do I need to know about taxes on my royalties?
Bennett Media & Marketing will mail a Form1099-MISC to each U.S. author who was issued a payment for $10.00 or more in royalties (or incurred backup withholding greater than $0.00) 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 Bennett Media & Marketing 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 Bennett Media & Marketing 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, Bennett Media & Marketing 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.
When does Bennett Media & Marketing mail the 1099-MISC or 1042-S?
We are required by law to mail the previous year’s form 1099-MISC by January 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.