Hello, author here with a question about split royalties and how best to claim taxes. I write as a partnership with a foreign counterpart. He lives in Bosnia. I publish for us here in the states. Our first shared royalties are due to start rolling in here at the end of the month. How do I figure taxes to best stay in tax compliance?
I want to send estimated tax payments to the IRS (as companies like Amazon/Kindle and Ingram Spark do not withhold taxes). Do I withhold taxes based off the entire royalty amount and send him his portion (post tax) or (pre tax) and does that matter based off his country of residence and its treaty-tax status with the U.S.?
I would appreciate any help.
Aaron
