Fair warning, this is not going to be a happy post. A lot of times I try to deliver good news or positive vibes with my posts, but today? Well, today you’re probably going to leave unhappy. You’ll see why in a bit.
So, you’ve been published! Your book is out in the wild, selling copies and making you dough! Success! You’re on the way to riches, watching with glee and satisfaction as money slowly funnels into your bank accounts or arrives in publisher’s checks.
For many young authors, this is “the end” of the line as far as they are concerned when it comes to money. They wrote the book, and now royalties roll in. End of story, right?
No, unfortunately. It’s the end of the book’s story, but it’s not the end of the writers. Even if they create a one-hit wonder and call it quits afterwards … they can’t just sit back and relax. Because sooner or later, the IRS will come calling.
Now, from my mention of the IRS, you may rightfully realize that yes, I’m speaking about taxes as a US writer, and any specifics that I’m going to offer are going to be focused around my experiences with the US tax system. Which isn’t to say that if you’re not a US citizen you won’t find something to gain from this post, but it may be more general advice than specific. Regardless of where you live, after all, you’re going to have taxes of some kind. They may not be exactly like what I speak of here, but they may be similar.
Anyway, first things first. You will pay taxes on your book sales.