To comply with IRS reporting requirements starting with tax year 2022, BookBaby is required to report subscription type payments that it makes to U.S. authors if the aggregate amount of such payments equals or exceeds $10.
Likewise, BookBaby is also required to report royalty and subscription type payments made to non-U.S. authors for use and consumption of products or content in the U.S., on IRS Forms 1042-S and 1042, irrespective of the amount paid.
What are subscription type payments?
Subscription type payments occur when a book is consumed by a reader as part of a book reading subscription service such as Kindle Unlimited. Subscription sales typically do not include the purchase of full print, eBook, or audiobooks when the reader makes a purchase of the full book online or in stores and receives the book in full during one transaction.
When will I receive my tax documents from BookBaby?
If you meet this criteria, then on or before January 31st, you will receive an email inviting you to log into your BookBaby account and download your tax documents.