Tax-Withholding ....

[adonis0213]

If anyone can help me with this issue, I would appreciate it.

I plan on self-publishing with Smashwords within the next month or so and it came to my attention that the IRS, not them, withhold 30% tax for anyone outside of the US.

Now, here's my issue.

I was born in the US, but until the end of the year I am currently living abroad (in Ecuador, where there is not tax treaty). I wanted to know if me, being a US citizen, would be exempt from this tax withholding. If so, how?

I have emailed Smashwords concerning this issue, but they have yet to get back to me (three weeks now!). So if someone can help me out here and answer this question, I would really appreciate it.

[OneandonlyDoc]

I would assume that they'd know you're a US citizen when you put in your EIN/SSN for tax purposes, don't they?

[adonis0213]

Actually you are right, thank you.

Also I finally got a reply from Smashwords on this matter

"Since you are a citizen, use your SS# which should exempt you from the 30% withholdings"

[jaxx6166]

Regardless, as a US citizen, you should hold on to at least 50% of your income from the sales of your books, usually I think they only allow you to make up to $600 before you NEED to actually pay tax on them, but it's better to err on the side of caution. Some of my more famous writerly friends routinely save at least 50% of their income so the tax man does not come knocking. You don't want to be the Wesley Snipes of self publishing

[adonis0213]

Thanks for the advice. I wouldn't want to be the Wesley Snipes of self publishing