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KDP Tax Information: A Guide to the Online Tax Interview
One of the most important and often intimidating steps to setting up your Kindle Direct Publishing (KDP) account is completing the tax information interview. This is a mandatory process required by United States law. Amazon, as a US-based company, is legally obligated to report your royalty earnings to the U.S. Internal Revenue Service (IRS).
While it may sound complex, the KDP tax interview is a straightforward online wizard designed to correctly identify you as a US or non-US person for tax purposes. Completing this interview accurately is crucial, as it ensures that the correct amount of tax is withheld from your royalties and that you can get paid.
Key Takeaways & Summary
A Mandatory Step: You must complete the tax interview to get paid your royalties. It is not optional.
An Online Wizard: The “interview” is not a conversation; it’s a simple, step-by-step online form on your KDP account.
US vs. Non-US Authors: The information you need will differ depending on whether you are a US citizen/resident or an international author.
The Goal is to Avoid Default Withholding: If you do not complete the interview, Amazon is required by law to withhold a flat 30% of your earnings from all sales.
KDP Tax Information for US Authors
For authors based in the United States, the process is very simple.
What you will need: Your legal name and address, and your U.S. Taxpayer Identification Number (TIN).
For individuals publishing as a sole proprietor, this is your Social Security Number (SSN).
For businesses (like an LLC you have set up for your author career), this is your Employer Identification Number (EIN).
The Outcome: By providing this information, you are telling Amazon that you are a U.S. person. Amazon will not withhold any taxes from your royalties. You will be responsible for reporting your KDP income on your own annual tax return. Amazon will send you a Form 1099-MISC at the end of the year detailing your total earnings, which you will use to file your taxes.
KDP Tax Information for International Authors (Non-US)
For authors living outside the United States, the tax interview is slightly more complex, but its goal is to help you.
The Default is 30% Withholding: By default, the IRS requires Amazon to withhold 30% of royalties earned by non-US persons from sales in the US.
The Power of Tax Treaties: However, the US has tax treaties with many countries that significantly reduce this withholding rate (often to 0%, 5%, or 10%). You can find a list of these countries and their treaty rates on the IRS website.
What you will need:
Your legal name and foreign address.
Your local Taxpayer Identification Number (TIN) from your country of residence. This is essential for claiming treaty benefits.
The Outcome: By correctly completing the interview, providing your foreign TIN, and claiming the benefits of your country’s tax treaty, you can lower the US tax withholding on your royalties from 30% to the much lower treaty rate.
How to Complete the KDP Tax Interview: A Walkthrough
Log in to Your KDP Account: Go to your KDP Bookshelf.
Go to “Your Account”: In the top right corner, click on your name and go to “Your Account.”
Find the “Tax Information” Section: You will see a section for “Tax Information.” Click the button to “Complete Tax Information.”
Follow the Online Wizard: The interview will ask you a series of simple questions:
Are you an individual or a business?
Are you a U.S. person?
You will then enter your legal name, address, and your relevant tax ID number (SSN, EIN, or foreign TIN).
Provide Your Electronic Signature: At the end, you will type your name, which acts as a legal electronic signature.
For an official, detailed walkthrough, you can always refer to Amazon’s own KDP tax help page. Completing this step is a fundamental part of our Amazon KDP publishing services, as it ensures our authors are set up for financial success.
Short FAQ
Q: What is a “withholding tax”?
A: A withholding tax is an amount that Amazon is required by law to withhold from your royalties and pay directly to the IRS on your behalf. For international authors, completing the tax interview correctly can reduce this amount.
Q: As a US author, do I need an EIN?
A: Not necessarily. If you are publishing as an individual (a sole proprietor), your Social Security Number (SSN) is sufficient. You only need an EIN if you have set up a formal business entity like an LLC for your writing.
Q: What if I move to a different country?
A: If you move, you must retake the KDP tax interview with your new address and tax information to ensure your royalties are taxed correctly according to the new country’s treaty status.
