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Topic: Amazon Tax Issues - USA Citizen, UK Resident  (Read 961 times)

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Amazon Tax Issues - USA Citizen, UK Resident
« on: December 13, 2011, 05:43:54 PM »
I've started selling books on Amazon, and going through their tax-withholding process, there doesn't seem to be an option for the US citizen living abroad.

I've been given two options - forms for "foreign entities" (what is listed as a not a resident or citizen of the US) W-8BEN or W-8ECI.

The other option being that my taxes are withheld from my overall sales at a rate of 30%.

I have used US-based freelancer sites, filled out a W-9, and no taxes are withheld. Is this an option that I would be able to offer to Amazon to avoid my taxes being held back, then looking to pay them in to Uncle Sam in the event that I go over the usual tax threashold?


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Re: Amazon Tax Issues - USA Citizen, UK Resident
« Reply #1 on: December 13, 2011, 07:50:35 PM »
In general, you are correct, submitting a W-9 is supposed to get you off the hook for mandatory tax withholding. However, individual organisations such as Amazon may not be set up to accommodate every possibility. If you don't get anywhere using their usual withholding process, try writing a letter and offering the W-9 option.


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Re: Amazon Tax Issues - USA Citizen, UK Resident
« Reply #2 on: December 13, 2011, 09:29:24 PM »
Thanks. I'm going to try and push for the W-9. I'm assuming if I do end having to fill out a 1099, I'd get the taxes withheld and I'd have to wait until my return to get it back?


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Re: Amazon Tax Issues - USA Citizen, UK Resident
« Reply #3 on: December 14, 2011, 05:53:05 PM »
I do not know why Amazon would want to withhold US tax but if they do and give you a 1042-S you can claim this as a credit on your US return.  Your UK return would be unaffected as the business profits are primarily taxable in the UK as they are UK source.


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