In the first quarter of every year, PublishDrive will provide you with either an 1099 or a 1042 form based on your country of residence. You can use this to report the income you had through publishing and selling your books in the previous year.
What is a 1099 form?
We provide this form to our users who currently reside and pay taxes in the United States. The form we send will be a 1099-MISC form which is for freelancers or independent contractors.
A 1099 form is a record that an entity or person other than your employer gave or paid you money. In this case, PublishDrive fills out the 1099 form and sends copies to you and the IRS. We usually send out the forms via the software Track1099, so if you receive an email that mentions it, it is safe to open.
We send out the 1099 forms around late January or early February.
What is a 1042 form?
We provide this form to our users who reside and pay taxes outside of the United States. This form is an official account of a foreign person's U.S. source of income. Since PublishDrive is a US-based company, any royalties you earn through our platform will count as a U.S. income.
We issue 1042-S forms which are for incomes that would be subject to tax withholding in the US. These are also sent out via Track1099.
We send out the 1042-S form in March.