topic Okay thanks! What is the difference between the two if yo... in Get your taxes done using TurboTax

I am filling out tax info for Kindle Direct Publishing. I have never filed taxes or had a job before - will my SSN suffice, or do I need a tax ID in order to publish?

ash_hunter — Mon, 03 Jun 2019 17:26:01 GMT

So as I mentioned above, this is my first time publishing with KDP, and I've never filed taxes or had a job before. The tax section on KDP allows me to use my SSN I believe, but will this cause problems later since I've never filed taxes before? Just a general 'what you need to know' briefing on new taxpayers would be amazing! This is for my 'tax information interview' on KDP. Thanks in advance!

They are going to want you to fill in a W-4 if you are an...

Critter — Mon, 03 Jun 2019 17:26:02 GMT

They are going to want you to fill in a W-4 if you are an wages employee or a W-9 if you are an independent contractor ... both forms have the instructions on them ...

https://www.irs.gov/pub/irs-pdf/fw4.pdf

https://www.irs.gov/pub/irs-pdf/fw9.pdf

Okay thanks! What is the difference between the two if yo...

ash_hunter — Mon, 03 Jun 2019 17:26:07 GMT

Okay thanks! What is the difference between the two if you don't mind my asking?

One is if you are an employee and the other is not. If...

Critter — Mon, 03 Jun 2019 17:26:08 GMT

One is if you are an employee and the other is not. If you are an employee then the W-4 tells the employer the way you want to be withheld ... and the W-9 is just informational.

Ask them if you will be getting a W2 for wages or a 1099M...

VolvoGirl — Mon, 03 Jun 2019 17:26:09 GMT

Ask them if you will be getting a W2 for wages or a 1099Misc for independent contractor self employment income.  What does the tax section on KDP say?  Does it ask for filing status and number of allowances?

You probably will get a 1099Misc or 1099K for what they pay you.  If you do that is self employment income.  Some general info.  You will need to keep good records.  You may get a 1099Misc at the end of the year if someone pays you more than $600 but you need to report all your income no matter how small.  You might want to use Quicken or QuickBooks to keep track of your income and expenses.

There is also QuickBooks Self Employment bundle you can check out which includes one Turbo Tax Online Self Employed  return....
<a rel="nofollow" target="_blank" href="http://quickbooks.intuit.com/self-employed">http://quickbooks.intuit.com/self-employed</a>

To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax.  You will need to use the Online Self Employed version or any Desktop program but the Desktop Home & Business version will have the most help.

Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment.  You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400.  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  You do get to take off the 50% ER portion of the SE tax as an adjustment on Schedule 1 line 27.  The SE tax is already included in your tax due or reduced your refund.  It is on the Schedule 4 line 57.  The SE tax is in addition to your regular income tax on the net profit.

Here is some IRS reading material……

IRS information on Self Employment
<a rel="nofollow" target="_blank" href="http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center">http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Self-Employed-Individuals-Tax-Center</a>

Pulication 334, Tax Guide for Small Business
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p334.pdf">http://www.irs.gov/pub/irs-pdf/p334.pdf</a>

Publication 535 Business Expenses
<a rel="nofollow" target="_blank" href="http://www.irs.gov/pub/irs-pdf/p535.pdf">http://www.irs.gov/pub/irs-pdf/p535.pdf</a>

Okay, after some research, I found out the tax interview...

ash_hunter — Mon, 03 Jun 2019 17:26:10 GMT

Okay, after some research, I found out the tax interview is a W-9. Therefore, all I needed was my SSN and all that. Thanks for those of you who tried to answer!

That means you are a independent contractor for it. You...

VolvoGirl — Mon, 03 Jun 2019 17:26:11 GMT

That means you are a independent contractor for it. You are self employed. You might get a 1099Misc (instead of a W2, you are not an employee). My long post above applies to you.