ITIN FROM THE IRS
Five of us gathered Wednesday night to honour The Muse and also to learn from Margaret about acquiring an ITIN (Individual Taxpayer Identification Number) from the American IRS (Internal Revenue Service). This is required of Canadian authors who do not want to be paying both Canadian and American income tax on royalties due them from work being published and/or distributed by an American company. Without this number, an American publisher/distributor is required by law to withhold 30% of earnings for American taxes. At the end of this blog, I will outline the steps needed to acquire this magical number.
Jim’s news is that the publisher Loose ID rejected his romance novel as it was, but said they would reconsider it if he rewrites it. So of course that’s what he’s doing. He did read for us Chapter 25 from “Coventry Ghosts, Book 2”. Cheri opens the coffee shop and then tells the ghosts that she has something for them. She has bought them a laptop that she sets up in the coffee shop and tells the ghosts she will leave it on for them to learn new things. The ghosts are able to enter the laptop and move around at will. Laurie enters the laptop and looks out at an old man looking in at her. He tells her he would like to know what life was like a thousand years ago and she promises to tell him. He will come back the next day.
Jason read Chapter 31, “Prophecy” from his novel. Gregg is tempted to follow a vision he has of Jody, but Sam, his dead mother, comes to him in an alternate realm and warns him about following an illusion. She tells him to follow Damianos to find Jody.
Wendy read a new poem she wrote, “Burst Of Spring”, which tells of a deep yearning and expectation of Spring. And in meeting Spring, she questions her own life and wonders if she’s learned its lessons and is ready to embrace Spring again?
I’ve started re-writing my “Honey” stories, getting them ready for self-publishing. I read a re-write of the first one I had written, “Clueless”, where I list a few of Honey’s funny traits.
Self-publishing ebooks with Kobo may become more enticing in the future. I filled out a survey they were asking their published authors about further services we would like them to provide. I did tick print-on-demand, and marketing help. I’ll let you know if their service is upgraded.
Margaret didn’t read anything of her own, but did spend time explaining the ITIN to us and showing us the paperwork. I took copious notes and later went to the IRS website to clarify my own understanding. Royalties paid to Canadian authors by American companies are considered to be passive earnings, subject to American income tax. Supplying an ITIN number to those American companies (as per treaty between Canada and the U.S.) means that you only have to pay Canadian income tax on those royalties, which you must declare as self-earned income when you file your taxes in Canada.
The steps to follow are:
1. Get a Canadian passport. There is a passport office at Surrey Central Mall in behind Shoppers, Margaret said.
2. Get a certified copy of that passport from the passport office. Margaret said a copy is about $20.00.
3. Download and print out a copy of the FORM W-7(Application for IRS Individual Taxpayer Identification Number). To get it, go to the IRS website: www.irs.gov/Individuals/General-ITN-Information
4. Fill out the form. At the top, under Reason you are submitting Form W-7, tick box a and also box h. Beside box h, write in “Exception 1(d) Royalties ”. Beside Enter treaty country write “Canada”. Then beside and treaty article number write “XII”. Finish filling out the form and sign it.
5. To the W-7, attach your certified copy of passport and a Letter of Commitment from the U.S. publisher/distributor handling your work and collecting royalties on it.
6. Mail these three items to the IRS or take them to the IRS office. There is one at 114 W. Magnolia, Bellingham, WA 98225 Phone 360-752-4361.
7. It will take 8 to 10 weeks for the IRS to send you an ITIN.
8. When you receive your ITIN, then download FORM W-8BEN. Fill it out with your new ITIN and send it to your American publisher/distributor so they do not have to withhold taxes on your royalties.
I hope that explains things for you, but if you have any questions, I am not the expert. Go to the IRS website or phone them for clarity. Margaret said if you don’t fill out the W-7 correctly, not to worry. They will just send it back to you explaining what they want.
Next Meeting will be Wednesday, March 6th at 7:00 p.m. here at my place. I look forward to seeing you then.
Lisa
Friday, February 22, 2013
Friday, February 8, 2013
THE REVIEW
TEARS AND LAUGHTER
Jim, Jason, Ron and Ellie joined me for a fun Meeting here on Wednesday.
We started with Jason spreading pages all over my living room floor and then asking us to help judge the best artwork. He had solicited art submissions for his chapter headings and after over 300 submissions, he still needed to make the short list even shorter. But instead of picking individual winning pieces, we were asked to pick winning sets of diagrams. Each set was by the same artist. This was interesting and most of us chose the same set of diagrams. Now Jason has to pay the winner for the work. I told him he should have run it like a writing contest and charged everybody an entry fee for their submissions. He could have made a lot of money!
Jim told us negotiations over a publishing contract with Amira Press for his romance novel have come to a stop. Anne Berrie looked over the contract for him and pointed out Amira had the right to end the contract at any time for any reason, but he would not be able to do the same. He would have been tied in forever as the contract was stipulated to self-renew every thirty days. When Jim pointed this out and asked for a change to the contract, all communication from them ceased. So writers beware! Jim is now submitting elsewhere.
Ellie read first, a rewrite of “Flying From The Grass”. This is a children’s story in poetic form about a child imagining being able to fly. We all thought it would make a great picture book for young children.
Ron read a poem called “Disappearing Man” about his Dad’s life from young and vibrant to old and frail and his descent into the diminishment caused by dementia. Very, very sad.
Because Valentine’s Day is near, and further to Ron’s piece he read last time about placing a companion ad, I read an article of mine on the same topic that was published by The Province in 1988, on Valentine’s Day. Then I read a poem of mine entitled “The Question Of Love”, citing all the many ways love can be expressed and asking at the end what new kind of love the person just met would like to try?
Jim read Chapter 24 from the second book of “Coventry Ghosts”. Here we meet a new character, Launi, who goes into the Wired Monk and hires the ghostly caterers for an afternoon tea party. We learn she is the backup investigator in the search for Jason.
Jason read Chapter 30, “Spent”. We see an intense power flowing through Gregg to his Granny and bringing her back to life as he held onto her. However, he is dizzy and confused and knows he has to let go of her but is unable to do so. Then the ambulance and paramedics arrive and Gregg passes out.
Next Meeting will be Wednesday, February 20th at 7:00 p.m. here at my place. Margaret F. said she would bring the U.S. tax forms and explain how it works for Canadian authors to become exempt from paying U.S. income tax when their work is published in the U.S. She said it wouldn’t take much time to explain. Hope to see you here on the 20th.
Lisa
Jim, Jason, Ron and Ellie joined me for a fun Meeting here on Wednesday.
We started with Jason spreading pages all over my living room floor and then asking us to help judge the best artwork. He had solicited art submissions for his chapter headings and after over 300 submissions, he still needed to make the short list even shorter. But instead of picking individual winning pieces, we were asked to pick winning sets of diagrams. Each set was by the same artist. This was interesting and most of us chose the same set of diagrams. Now Jason has to pay the winner for the work. I told him he should have run it like a writing contest and charged everybody an entry fee for their submissions. He could have made a lot of money!
Jim told us negotiations over a publishing contract with Amira Press for his romance novel have come to a stop. Anne Berrie looked over the contract for him and pointed out Amira had the right to end the contract at any time for any reason, but he would not be able to do the same. He would have been tied in forever as the contract was stipulated to self-renew every thirty days. When Jim pointed this out and asked for a change to the contract, all communication from them ceased. So writers beware! Jim is now submitting elsewhere.
Ellie read first, a rewrite of “Flying From The Grass”. This is a children’s story in poetic form about a child imagining being able to fly. We all thought it would make a great picture book for young children.
Ron read a poem called “Disappearing Man” about his Dad’s life from young and vibrant to old and frail and his descent into the diminishment caused by dementia. Very, very sad.
Because Valentine’s Day is near, and further to Ron’s piece he read last time about placing a companion ad, I read an article of mine on the same topic that was published by The Province in 1988, on Valentine’s Day. Then I read a poem of mine entitled “The Question Of Love”, citing all the many ways love can be expressed and asking at the end what new kind of love the person just met would like to try?
Jim read Chapter 24 from the second book of “Coventry Ghosts”. Here we meet a new character, Launi, who goes into the Wired Monk and hires the ghostly caterers for an afternoon tea party. We learn she is the backup investigator in the search for Jason.
Jason read Chapter 30, “Spent”. We see an intense power flowing through Gregg to his Granny and bringing her back to life as he held onto her. However, he is dizzy and confused and knows he has to let go of her but is unable to do so. Then the ambulance and paramedics arrive and Gregg passes out.
Next Meeting will be Wednesday, February 20th at 7:00 p.m. here at my place. Margaret F. said she would bring the U.S. tax forms and explain how it works for Canadian authors to become exempt from paying U.S. income tax when their work is published in the U.S. She said it wouldn’t take much time to explain. Hope to see you here on the 20th.
Lisa
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