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KDP Payment Setup: A Guide to Getting Paid Your Royalties
One of the most exciting moments for a new KDP author is seeing those first sales appear in their reports. But for those sales to turn into actual income, you must complete the crucial final step of your account setup: the KDP payment setup. This is the process of providing Amazon with your bank and tax information so they can pay you your hard-earned royalties.
While the process is straightforward, it is mandatory. You cannot get paid until this information is fully and correctly entered into your KDP account. This guide will walk you through the simple, step-by-step process to ensure your payment setup is complete and correct.
Key Takeaways & Summary
A Mandatory Step to Get Paid: You must complete your payment and tax information on your KDP account before Amazon can send you any royalty payments.
Two Key Sections: The setup involves two main parts on your KDP account page: “Getting Paid” (your bank information) and “Tax Information”.
Direct Deposit is Best: The fastest and easiest way to get paid is via Electronic Funds Transfer (EFT), also known as direct deposit.
Complete the Tax Interview: The online “tax interview” is a required step that validates your identity with the IRS and ensures the correct amount of tax is withheld (if any).
What You Need Before You Start Your KDP Payment Setup
To make the process quick and easy, gather this information before you log in to your KDP account.
Your Bank Account Details: You will need your bank’s name, the account holder’s name, your account number, and your routing number.
Your Taxpayer Identification Number (TIN):
For US Authors: This is your Social Security Number (SSN) for individuals, or an Employer Identification Number (EIN) if you’ve set up a business.
For International Authors: This is the tax ID number issued by your home country.
The Step-by-Step Guide to KDP Payment Setup
Step 1: Navigate to Your KDP Account Page
Log in to your KDP account at kdp.amazon.com.
In the top right corner, click on your name (e.g., “John’s Account”) and select “Your Account” from the dropdown menu.
Step 2: Complete the “Getting Paid” Section
This is where you tell Amazon where to send your money.
Under the “My Account” heading, find the section called “Getting Paid.”
Click the “Add a bank account” button.
Select your bank’s country from the dropdown menu.
Carefully enter your bank account details: account number, routing number, and the name on the account. Double-check that all numbers are correct.
Step 3: Complete the “Tax Information” Section
This is the most critical part of the payment setup.
In the “Tax Information” section on the same page, click the “Complete Tax Information” button. This will launch the online “tax interview.”
The interview is a step-by-step wizard. It will ask you to confirm your identity, your business type (usually “Individual” for new authors), and whether you are a U.S. person.
You will then enter your legal name, address, and your Tax Identification Number. For a full breakdown of this process for both US and international authors, see our guide on KDP tax information.
At the end, you will provide your electronic signature and submit the interview. In most cases, your information will be validated instantly.
Confirmation and Payout Schedule
Once both the “Getting Paid” and “Tax Information” sections have a green checkmark and say “Complete,” your KDP payment setup is finished.
When you get paid: KDP pays royalties on a monthly basis, approximately 60 days after the end of the month in which the sales occurred. For example, your March royalties will be paid at the end of May.
You can track your upcoming payments in your KDP reports under the “Payments” tab.
Correctly setting up your payment information is a foundational step in treating your writing career as a business. It’s a key part of our Amazon KDP publishing services to ensure our authors are set up for success from day one.
Short FAQ
Q: What happens if I don’t complete my KDP payment setup?
A: Your book can still be for sale, but Amazon will not send you any royalty payments. They will hold your accrued royalties until you complete your account information.
Q: Can I get paid by check instead of direct deposit?
A: Yes, KDP does offer payment by check in some cases, but it’s not the recommended method. Checks have a much higher payment threshold (you have to earn more before they send a payment), they can get lost in the mail, and they can take a long time to arrive. Direct deposit is faster, safer, and more reliable.
Q: I’m not in the US. How does KDP handle currency conversion?
A: KDP handles it automatically. They will calculate your royalties in the currency of the marketplace where the sale occurred (e.g., Euros in Germany) and then convert that amount into your home currency before depositing it into your bank account. You can find more information about this on Amazon’s KDP help pages.
