Income Taxes on Ream

Frequently Asked Questions about income taxes for authors

Arielle

Last Update 3 maanden geleden

We all know that taxes can be complicated. In this guide, we hope to demystify how income taxes work on Ream. For Sales Tax, VAT, and other use taxes, check out this guide.


Is my income on Ream taxable?


Yes, your income on Ream is considered taxable in most jurisdictions. Depending on the business type you are being paid out to and the locality you live in, you may have different income tax requirements and brackets. 


Unfortunately, further details on this are beyond the scope of this document and we recommend Ream authors consult with a CPA and look into local income tax laws for more guidance on specific tax situations.


Does Ream withhold tax from my income?


No, Ream does not withhold any income taxes from our authors. 


How is my gross revenue calculated on Ream?


Your gross revenue for income tax reporting is the total amount your readers pay for your tiers minus any refunds and payment processing fees. For deductions and reporting other expenses related to your subscription such as shipping costs, you are able to report this from your own records. We recommend consulting a CPA or tax professional with any additional questions.


How does tax filing work at the end of the year?


You will receive a report of your gross revenue that you can download directly from your Stripe Dashboard if you are an author set up for direct payouts. 


If you are set up for Ream Managed payouts at this time you will have a unique link hosted by our payment partners where you can download your gross revenue receipts at the end of the year. 


Eventually, for all authors, we will be moving this to the Ream Dashboard and hope to have an update before next tax year on this front.


Will I receive a 1099 tax form from Ream?


This depends if your income crosses certain thresholds that require us to prepare specific 1099 forms for you. You can find more details about these thresholds here.


What if I'm not based in the United States?


During your onboarding for payouts, you filled out the requisite information that includes your local tax or business ID as part of the brief tax interview. This is the required information for W-8BEN-E/W-9 filing. 


For more information on income tax treaties with the U.S. for international authors, we recommend consulting a local tax advisor. Ream is required to follow the same laws for income taxes and treaties just as any other online platform or eBook retailer.


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