Hello,
I am an Indian citizen and have been working as a Research Scientist on an H1B (lottery exempt) visa at a US university since November 2023. Before this, I was on a J-1 visa (Research Scholar) at a national lab in the US starting in 2018. During my time on the J-1 visa, I authored five books in my research area. Four of these books were published by a UK-based publisher in December 2023 (although the work was completed before my H1B visa term began), and the fifth book was published by a US-based publisher in March 2024.
Recently, I received royalties via wire transfer for the four books published by the UK-based publisher. The publisher informed me that "We are required by the UK Tax Authority to deduct 20% Income Tax at source unless a double tax clearance has been approved." As a result, the royalties I received had already been taxed at 20% in the UK. I would like to know if I need to pay taxes in the US on these royalties. If so, how should I report this income to the IRS? If not, do I still need to inform IRS about these royalties?
I have not yet received royalties from the US-based publisher for my fifth book. However, when I do, what kind of tax form can I expect from the US-based publisher? Additionally, is receiving such income legal considering my current H1B visa status?
Regards,
RD
