A Publisher's Conversation with Authors: Royalties and Taxes

It is Tuesday. Monday's madness is over, and Wednesday will take us over the hump, so Tuesday it is--for some serious discussion with authors. Tuesday talks mean to address authors in waiting and self-published authors who would like to go a more traditional route or who would at least like to take their steps with a publisher by their side. 

Since today is Tax Day, it seems like an appropriate time to explain how royalties and taxes are intertwined. Some authors become quite confused. Well, it is confusing because of the multiple years involved in royalty statements, payments, 1099s, and tax filings. Here is a visual that might help.

 

Books sold	Royalties paid	MSI sends 1099 to IRS and author	Authors report royalties on 1040 (and to state)
2023	2024	2025 (January)	2025 (April)
2024	2025	2026 (January)	2026 (April)
2025	2026	2027 (January)	2027 (April)

 

Note that 1099s are only sent when royalties exceed $600. For amounts less than that, authors are on their own to report the earnings (always wisest to be honest).

Bottom line: Moving from royalties earned, to royalties paid, to royalties reported will be a journey of three years.

The Tuesday talks reflect real discussions between the management of MSI Press LLC and our own authors or those would-be authors who come through our doors but don't make the cut--yet. If you have a topic that you would like addressed, leave the question in the comment section. Chances are, in our 22 years of publishing first-time and experiences authors, we have had a conversation with one of our authors that we can share with you.

 See more Publisher Conversations with Authors HERE.

 Learn more about publishing from an acquisitions editor -- how to get your book proposal accepted, why proposals are turned down/accepted, and how to find the right publisher for your book. On special sale for $5 while inventory lasts at MSI Press webstore. Also available as an e-book and an audiobook.

To purchase copies of this book at 25% discount,

use code FF25 at MSI Press webstore.

Want to read this book and not have to pay for it?

Ask your local library to purchase and shelve it.

Sign up for the MSI Press LLC monthly newsletter

(recent releases, sales/discounts, awards, reviews, Amazon top 100 list, author advice, and more -- stay up to date)

Check out recent issues.

 

Follow MSI Press on Twitter, Face Book, Pinterest, Bluesky, and Instagram. 

Interested in publishing with MSI Press LLC?
Check out information on how to submit a proposal.

We help writers become award-winning published authors. One writer at a time. We are a family, not a factory. Do you have a future with us?

Turned away by other publishers because you are a first-time author and/or do not have a strong platform yet? If you have a strong manuscript, San Juan Books, our hybrid publishing division, may be able to help.

Planning on self-publishing and don't know where to start? Our author au pair services will mentor you through the process.

Interested in receiving a free copy of this or any MSI Press LLC book in exchange for reviewing a current or forthcoming MSI Press LLC book? Contact editor@msipress.com.

Want an author-signed copy of this book? Purchase the book at 25% discount (use coupon code FF25) and concurrently send a written request to orders@msipress.com.

Julia Aziz, signing her book, Lessons of Labor, at an event at Book People in Austin, Texas.

Want to communicate with one of our authors? Send a note to info@msipress.com

Steven Greenebaum, author of award-winning books, An Afternoon's Discussion and One Family: Indivisible, talking to a reader at Barnes & Noble in Gilroy, California.

   

MSI Press is ranked among the top publishers in California.

Check out our rankings -- and more -- HERE.