How to Get a 30% Increase in Amazon Kindle Royalties

Have you written and published anything on the Amazon Kindle store yet? You're a freelance writer, after all. It makes sense to write your own stuff along with articles for clients too.

I've had a couple of different book series selling well in the Kindle bookstore for almost 2 years now and they royalties are really handy each month.

The biggest problem I've had as a non-US author is that Amazon insist on withholding 30% of my royalty income and giving it to the IRS. You see, when you sign up for your Kindle Direct Publishing account, you're required to submit a short tax questionnaire. Your answers determine whether they withhold almost a third of your income or not.

The only way I had to get that income back into my account where it belongs was to submit a tax return in the US each year. That's really painful, especially since I already submit a tax return here in Australia at a different time every year.

So you can imagine how thrilled I was when my long-time friend and mentor figured out a way to get out of paying that 30% withholding amount.

You can find the original article, along with instructions how to stop the IRS from withholding 30% of your royalty payments here:

Now, I followed the instructions and I figure it took me around 15 minutes to complete the necessary steps. The IRS issued me a new EIN immediately.

I logged into my Amazon Kindle Direct Publishing account, re-submitted the tax questionnaire with the EIN included and now they don't withhold ANYTHING from my income.

That's an instant 30% pay rise I just received on my royalty checks each month!! Thanks for the tip, Lee. The additional income is MUCH appreciated.