Balboa Press | FAQ - Pricing and Royalty

Pricing & Royalty FAQ

Do I make money when I self-publish my book with Balboa Press?
Will I make money when my book is sold online through Balboa Press?
How much royalty do I earn from e-book sales?
Will I be paid a royalty even if I live outside Australia or New Zealand?
How is the tariff of my book determined?
What is distribution cost in self-publishing?
How does Balboa Press calculate royalty payments?
Can I receive a volume discount on a large book purchase?
When is my book's tariff set?
Can I change the tariff of my book later?
What payment form will I receive my royalties in?
When am I paid royalties? When do quarters start and end?
When is my direct credit information updated?
How long does it take to receive payment?
Can my royalty cheque be split between a co-author and myself?
Can I arrange for someone else to receive my royalty payments?
What is the difference between a channel or retail sale and a Balboa Press sale?
Am I paid royalty on books I purchase?
I've noticed my book being sold as "used" on Web sites but I have not received payment; why haven't I been paid?
Why is my book listed at a different price on certain sites?
How do I know that I am being paid fairly for my book sales?
Why does Balboa Press need my Social Security number or tax information?
I do not have a Social Security number because I am not a U.S. Citizen. What now?
Can my publishing services be refunded?
Where do I see my sales?
What information is available in the online sales and royalty reports?
How long does it take for a sale to be listed in my online "Sales Activity Report"?
Why does it take so long for Balboa Press to post sales from distributors or other retail bookstores?
A bookstore ordered copies of my book at the end of last month, but those sales aren't appearing on my monthly statement. Why?
Will I still see a royalty statement if there were no sales in a quarter?
Can you provide me with the names of customers who bought my book? 

General Tax Information

What tax information can Balboa Press provide for me?
When does Balboa Press mail the 1099-MISC or 1042-S?
Why didn't I get a 1099-MISC this year?
If I was paid under $10.00 in royalties, do I have to report it on my income tax?
Why is the income stated on my 1099-MISC or 1042-S form not equal to the sum of my royalty payments for the calendar year?
When will Balboa Press post Quarter 4 royalties so I can complete my income tax return?

Tax Form Submission

I submitted a Form W-9 or a Form W-8BEN in the past. Why am I being asked for it again?
I opted-out of submitting my tax information. Why does Balboa Press continue to request my tax information?
If my company should receive the royalties instead of me, as the author, what do I need to do?
My company's W-9 was accidentally added to my individual account (or vice versa). How can I correct this?

International Authors

I am an international author, what do I need to do regarding the tax forms and ID numbers?
How do I know if my country has a tax treaty with the United States that allows me to claim a lower rate of withholding?
What if I don't have an ITIN?
What if I don't have an EIN?
How do I file Form W-7 with the IRS (to obtain an ITIN)?

1099-MISC

What is a 1099-MISC form?
Who will receive a 1099-MISC form? 
What if there is an error on the 1099-MISC form? Is it too late to make changes?
The amount on my 1099-MISC form doesn't match my cheques; what is wrong?
One of my cheques was not received during the tax year. May I request a corrected 1099-MISC?
Why isn't there a "Recipient's Identification Number" on my 1099-MISC form?
The "Recipient's Identification Number" on my 1099-MISC form is incorrect; what do I do?
The "Recipient's name" on my 1099-MISC form is incorrect; what do I do?
The "Recipient address" on my 1099-MISC form is incorrect; what do I do?
I cannot locate my 1099-MISC form; how can I request a copy?
Where can I find more information about my tax forms?

Do I make money when I self-publish my book with Balboa Press?

Yes, you will have the opportunity to earn money from book sales when you self-publish a book with Balboa Press. We do not license exclusive rights to publish your book from you, nor do we give you an advance against royalties like a traditional publisher. However you will earn royalties from each book sale; these royalties are taxable income for you. Please read other FAQs below to determine how book pricing and royalty calculations are determined.

Back to top

Will I make money when my book is sold online through Balboa Press?

Yes. When your book is sold through Balboa Press or another retailer you will receive a royalty amount.

Back to top

How much royalty do I earn from e-book sales?

You will receive 50 percent of the payments received from the sales of your e-book, less any distribution and technology fees, taxes and returns. Royalties will not be paid on copies provided free of charge or sold to the author.

Back to top

Will I be paid a royalty even if I live outside Australia or New Zealand?

Yes, you will be paid a royalty even if you live outside Australia or New Zealand. However, because of certain banking institutions, the currency which we can use to pay royalties has some limitations. The specific details are outlined in your author agreement.

Back to top

How is the tariff of my book determined?

We shall provide a proposed tariff for the sales of your work in the distribution channel.  If you have purchased a set your own tariff option, if available, the tariff we suggest is a proposed price for your work, and you are responsible for accepting our suggested tariff or setting a different tariff for each format of the work, as long as the final tariff is within the limitation we have set. After the tariff is set, we reserve the exclusive right to modify the tariff of the work, should production costs change or market conditions warrant. You must approve such tariff change prior to it taking effect.  If you do not approve the tariff change or we cannot contact you to obtain your approval for the tariff change, all or certain formats of the work will be removed from distribution.  PLEASE NOTE THAT THE SUGGESTED TARIFF IS NOT NECESSARILY THE PRICE OF YOUR WORK TO THE END CUSTOMER, WHICH IS SET BY THE RETAILER. 

Back to top

What is distribution cost in self-publishing?

The distribution cost is calculated by the costs involved in offering your book for purchase through various channels. These costs include maintaining your book on a Web site, keeping information current, order fulfillment, customer support and any other processes to ensure that your book is available to others.

Back to top

How does Balboa Press calculate royalty payments?

Your royalty rate calculations are based on the date you signed your author agreement.

Author agreements signed on or after 1 Oct. 2014

Royalties are based on the net payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus any shipping and handling charges or sales and use taxes. Since retail and wholesale customers purchase on a discount, the royalty amount you receive depends on what type of customer bought your book, the channel through which they purchased, and any discount they received.

Royalty percentages for printed, electronic (e-book), or audio copies are as follows:

  • 25 percent of the retail price for sales of printed copies or audiobook copies directly through the Balboa Press website bookstore.
  • 10 percent of the retail price for sales of printed copies or audiobook copies through one of our distribution channels, such as Amazon.*
  • 50 percent of digital net received for each e-book copy sold.
Here is an example of a common sales transaction of a printed book:
  • The retail tariff (list price) for your softcover book is AUD 15.95.
  • Your Balboa Press royalty rate for retail transactions is 10 percent. 
  • A retailer places an order for your book through Ingram Book Network, a distributor. 
  • Ingram Book Network then resells the book to the retailer. 

Your royalty on this retail sale is calculated as follows:

Source Softcover List Tariff Royalty % Royalty Earned
Retailer AUD 15.95 10% AUD 1.60
Web Sale Example:
Another scenario occurs when a consumer comes to the Balboa Press bookstore and purchases your book directly. Your royalty on this sale of the same book is calculated as follows:

 

Source Softcover List Tariff Royalty % Royalty Earned
Balboa Press website AUD 15.95 25% AUD 3.99

Please be aware that the largest retailers, including Barnes & Noble, Amazon, Booktopia and Bookworld, place orders for Balboa Press titles through our distributor, Ingram Book Company; those orders will appear as wholesale sales on your royalty statement.

Minimum Threshold for Payments

If your quarterly determination of royalties in any calendar year exceeds the threshold as specified in your Author Agreement, the payment shall be issued according to the quarterly payment schedule. If the quarterly royalties due are equal to or less than the threshold as specified in your Author Agreement, the quarterly royalty amount will be carried forward and added to the subsequent quarterly royalty amount due. Until cumulative author royalties exceed the threshold as specified in your Author Agreement, each quarterly author royalties payment will be carried forward and added to the cumulative author royalties. Cumulative author royalties at the end of a calendar year will be issued by 28 February.

* Please note: The 25 percent royalty rate only applies to consumer orders placed with Balboa Press. A retail order placed with Balboa Press qualifies for the 10 percent royalty.

Author agreements signed prior to 1 Oct. 2014

Royalties are based on the net payments we actually receive from the sale of printed or electronic (e-book) copies of your book, minus any shipping and handling charges or sales and use taxes. Since retail and wholesale customers purchase at a discount, the royalty amount you receive depends on what types of customer bought your book, the channel through which they purchased, and any discount they received.

Here is an example of a common sales transaction:

The cover tariff (list price) for your book is AUD 17.95. Your Balboa Press royalty rate is 50 percent.

Wholesale Example:

A retailer places an order for your book through Ingram Book Network, a distributor. Ingram, in turn, purchases your book from Balboa Press at a discount. Your royalty on this sale is calculated as follows:

Retail Sale Example:
$17.95 (SRP "Suggested Retail Tariff")
- $10.77 (60% Retail Discount)
= $7.18 (Net Retail Discount)
- $4.97 (COGS "Cost of Goods Sold")
= $2.21 (Net COGS)
x 50% (Royalty Rate)
= $1.11 (Royalty Earned from a retail sale)


Web Sale Example:
$17.95 (SRP "Suggested Retail Tariff")
- $4.97 (COGS "Cost of Goods Sold")
= $12.98 (Net COGS)
x 50% (Royalty Rate)
= $6.49 (Royalty Earned from a web sale)

Please be aware that the largest retailers, including Barnes & Noble, Amazon, Booktopia and Bookworld, place orders for Balboa Press titles through our distributors, Ingram Book Company; those orders will appear as wholesale sales on your royalty statement.

Back to top

Can I receive a volume discount on a large book purchase?

Yes. As a Balboa Press author, you are able to purchase copies of your book for a discounted price. You'll also receive a larger discount as you order a greater number of copies. The tariff of the cost per book depends on the book format and page count.

 

Paperback Discounts:

 

Book Quantity

Discount*

1-99

40%

100-249

45%

250-499

50%

500-999

55%

1,000+

Call for Quote

 

* Orders must be for a single title, same print format, despatched to single address, no mix and match. All volume discount orders must be prepaid. Author purchases are royalty exclusive and non-returnable. Does not include author event discount purchases. Despatch charges are not included. Discounts apply to your book's retail price.

Back to top

When is my book's tariff set?

The price of your book is set just prior to manuscript and cover approval, because the final page count, cover and book size help determine the price.

Back to top

Can I change the tariff of my book later?

No. Once the tariff of your book is set, it stays that way for the entire life of the book.

Back to top

What payment form will I receive my royalties?

Your royalties from book sales are paid on a quarterly basis (four times a year). If it is permitted in the country where you reside and you elect to have payment made in the form of a cheque, royalties are paid when your royalty earnings exceed the threshold in your Author Agreement. If you chose payments by electronic funds transfer (EFT), you will be paid each quarter regardless of the amount.

Back to top

When am I paid royalties? When do quarters start and end?

First Quarter: January 1 to March 31 (cheques are mailed in late May)
Second Quarter: April 1 to June 30 (cheques mailed in late August)
Third Quarter: July 1 to September 30 (cheques mailed in late November)
Fourth Quarter: October 1 to December 31 (cheques mailed in late February)

You are paid for the books sold and despatched in the given time frame. If a book was purchased online on March 30, but the book was not actually printed and despatched until April 2, then you would be paid in the second quarter, not the first, since the book didn't despatch until the second quarter. E-book purchases are recorded  when the sale is made.

Please note that you will only generate royalties from the original book sale. For instance, if a book is resold in any kind of second-hand store, you will not earn a royalty on that sale. Also, for retailers, you earn a royalty when the book is sold to a retailer who purchases your book for their store, not when a consumer actually purchases the book from the retailer.

Back to top

When is my direct credit information updated?

We update new or modified direct credit information on 31 January, 30 April, 31 July and 31 October. To ensure your royalty funds are transferred to your preferred account, please make sure your account information is accurate prior to these dates. Changes made after these dates will be reflected on the following pay cycle.

Please note: You must reference an Australian-based bank BSB code in order to take advantage of direct credit.

Back to top

How long does it take to receive payment? 

It takes about two months after the quarter closes until the royalty payments are sent to you. First Quarter cheques are mailed in late May, Second Quarter cheques are mailed in late August, Third Quarter cheques are mailed in late November, and Fourth Quarter cheques are mailed in late February. (See specifics in the FAQ above)

The two month timeframe is because we do not receive the reporting sales information until 30 days after the close of the quarter. Then, we need additional time to verify, compile and send out the information to you.

Back to top

Can my royalty cheque be split between a co-author and myself?

No, because of tax restrictions we cannot offer a split royalty payment between individuals. Of course, when the payment comes to you, you may do whatever you wish with the royalties.

Back to top

Can I arrange for someone else to receive my royalty payments?

Yes you can, but only if you transfer the entire rights of your agreement with Balboa Press to that person. That person will also hold the copyright for the book, but not the content of the book or your manuscript. If you would like to arrange this, please contact your publishing consultant.

Back to top

What is the difference between a channel or retail sale and a Balboa sale?

When a book is sold through the Balboa Press website, it is considered a Balboa Press sale. A retail, or channel sale, is when the book is sold through any retailer other than Balboa Press (like Amazon.com or BarnesandNoble.com). Your book selling tariff must be the same for both Balboa Press and retail sales, but you will earn a different royalty amount depending on the type of sale.

Back to top

Am I paid royalty on books I purchase?

Royalty payments on books you purchase depend on how you place the order. If you place an order for copies of your book through an e-mail to Balboa Press and receive your author discount, then no, you will not receive a royalty payment for that order. This is because you receive the "royalty" as a discount up front. However, if you order directly through our Web site or a retailer and pay full tariff, then yes, you will receive a royalty payment for that purchase.

Back to top

I've noticed my book being sold as "used" on Web sites but I have not received payment; why haven't I been paid?

Often, retailers list books on their Web sites and advertise that they have "new and used" copies of books. Retailers use this as a marketing tool to entice the consumer by frequently offering a small discount on the used version. This does not necessarily mean that they have an actual copy of your book on hand, which is most likely the case if you have not been paid a royalty for the book sale. If any books are sold to a retailer, you will earn the retail royalty amount which was agreed upon.

If a retailer or third party is actually selling a used copy of the book, you would have already been paid in the past for the original sale.

Back to top

Why is my book listed at a different price on certain sites?

When you publish with Balboa Press, your book is circulated to various retail channels through Ingram Book Network, our book distributor. Retailers can list the selling tariff of your book at whatever price they wish, although most follow the suggested retail price. However, some retailers may choose to list the book higher or lower than the suggested retail tariff, which is completely within their rights. Regardless of what a retailer sells your book for, you will always receive the retail royalty amount agreed to during the production of your book.

Back to top

How do I know that I am being paid fairly for my book sales?

You will be provided with a royalty statement showing book sales and royalty payment details each quarter. The statements are compiled and cross-examined by multiple parties to ensure an accurate record of your royalty payments.

Both our printer and distributor employ independent auditing firms to verify the book sales data. Additionally, a globally recognised accounting firm conducts yearly audits of our finances to ensure accuracy.

However, if you feel there has been an error in your royalty payment report, you can contact your publishing consultant to look into the matter more thoroughly.

Back to top

Why does Balboa Press need my Social Security number?

We require your Social Security number to comply with the government's tax regulations. Since you have the opportunity to earn additional income from book sales, the government requires that you pay taxes on the total earnings. The W-9 form allows you to provide a Taxpayer Identification Number, or TIN. If you are publishing your book under your own name or a pen name, your TIN is your Social Security number. If you are publishing under a business name, or you want your royalty cheque to be addressed to a business, you can enter your employer identification number instead of your personal Social Security number.

If you do not supply your taxpayer ID number, we are required to withhold taxes at the rate of 28 percent of total earnings.

If you supply us with your taxpayer ID at a later date, we cannot return the withheld tax money because we do not retain it — it is passed on to the government by law. You can speak to a tax professional about how to report this at the end of the tax year in order to receive a tax return for any additional amount that you are due.

Back to top

I do not have a Social Security number because I am not a U.S. Citizen. What do I do?

Even if you live outside of the United States, you will still earn a royalty just as our American authors do, but we are required to withhold 30 percent of your royalty earnings. This percentage will be withheld unless you apply for a foreign tax number by submitting a W-8BEN. With a foreign tax ID, we're no longer required to withhold taxes. Any money that was previously collected can be reclaimed with your taxes at the end of the year, but we cannot repay it. For more information, or to download a W-8BEN, visit www.irs.gov.

Back to top

Can my publishing services be refunded?

You may be entitled to a refund of all or a portion of the amount you paid for a publishing package. The refund opportunity is exclusive to the amount paid for the publishing package as referenced in your service order. All other services are non-refundable after purchase. You shall be entitled to a refund of the amount paid for the publishing package as follows: 

a. Prior to submission of the manuscript: 100% (less a AUD $165 setup fee) 

b. After (a) above and prior start of interior design work: 50% 

c. After (b) but prior to final sign-off 25% 

Irrespective of (a-c) above, after six (6) months from the effective date, no refund is due to you. Refunds as a result of non-compliance with content guidelines: If after review of your manuscript, we terminate this agreement due to your non-compliance with the content guidelines, we shall refund to you the full amount paid for your publishing package pursuant to the service order(s) less two hundred dollars AUD ($220) (which will be assessed as our charge to review the manuscript for compliance with our content guidelines).

Back to top

Where do I see my sales?

We'll help you track sales and royalty information in online reports in your account dashboard on the Balboa Press website.

Back to top

What information is available in the online sales and royalty reports?

In the Sales & Royalties tab of your Balboa Press account dashboard, you will be able to view a variety of information regarding sales of book(s) and royalties earned.

We update these reports for you as frequently and as accurately as we can. However, please note that because external retailers operate on their own schedule, it can take time for them to report their sales information to us. This means your online report cannot be updated in real time for each sale.

  • Sales Reports: In the sales activity reports, we provide you with information regarding your book sales to give you an estimate of how and where your book is selling.
    • Click the "View Your Sales Activity (1 Jan. 2014 - Present)" link to access sales data from 1 Jan. 1 2014, forward. You can sort this sales data based on title, format, retailer, date, etc. You can also filter the sales data to create further customized reports. These reports can be exported as Excel or PDF files for your personal records.
    • Click "View Your Pre-2014 Sales Activity" button to access sales data prior to 31 Dec. 2013.
     
  • Royalty Reports: In the "Royalty Report," you can find your book sales for each quarter.

Back to top

How long does it take for a sale to be listed in my online "Sales Activity Report"?

The information in the "Sales Report" is updated throughout the quarter to give you an idea of how and where your book is selling. We deliver sales information to you as soon as we can, however this data cannot be updated in real time and may not reflect finalized information.

The time it takes a sale to be listed in your sales report is determined by the type of sale:

Sale type Time until listed
Balboa Press Bookstore 72 hours
Consumer sales (i.e., call-in purchases through Balboa Press) 72 hours
Retail sales (e.g., Amazon.com) Four weeks or more

 
Please note: External retailers — Apple, Amazon, Barnes and Noble, etc. — operate under their own schedules, and Balboa Press cannot control the frequency with which they report sales information.

Back to top

Why does it take so long for Balboa Press to post sales from distributors or other retail bookstores?

All companies have a month-end close process to collect and validate financial information, and Balboa Press is no exception. At the close of each month, Balboa Press must collect sales and printing information from each of our business partners. We reconcile book orders and book sales with printing information to ensure that every single copy that is printed is accounted for. Then, we consolidate sales from many different sources into a single monthly statement for each author.

The process of collecting, consolidating, closing and posting sales information from our partners can take more than four weeks. It is important to remember that the sales statements are not final, however, because information posts to them as it is received. This process may take time, but we think it is essential to provide you with information that is 100 percent accurate and to account for each and every sale.

Although we strive to post sales statements as quickly as possible, four times per year it takes us six weeks to post statements due to our royalty payout schedule. During these quarterly payment periods, our staff is busy preparing quarterly statements and arranging individual royalty payments.

Back to top

A bookstore ordered copies of my book at the end of last month, but those sales aren't appearing on my monthly statement. Why?

There are two reasons this might occur. First, like many publishers, Balboa Press records a sale and pays royalties only after books are physically shipped. We may have an order in process at the end of a month, but if the books haven't shipped that month, then the sale will not be recorded until the following month.

Please also note that each retail partner operates under their own schedules, and Balboa Press cannot control when we receive sales reporting information from them.

Back to top

Will I still see a royalty statement if there were no sales in a quarter?

Once the statement for a quarter in which you have made no sales has been finalized, you will see the reporting period for that quarter available in the dropdown report menu with $0.00 indicated in parenthesis. If you choose to run that report, you will see a message that says "No sales reported for the period selected."

Back to top

Can you provide me with the names of customers who bought my book?

Consumer privacy rules and Balboa Press business policy do not allow us to provide this information to you or to anyone else. While we and our retail partners protect the identities of individual customers, we do provide you with as many details as we can in your "Sales Report."

Back to top

General Tax Information

International authors will receive a Form 1042-S instead of a Form 1099-MISC for the royalties earned and the amount withheld during the calendar year. The Form 1042-S will be mailed by March 15.

The IRS requires Balboa Press to have a Form W-9 or Form W-8BEN on file for each author who may earn royalties. The tax form must include the individual or company's U.S. Taxpayer Identification Number (SSN, EIN, or ITIN).  If the author refuses to provide the form or the digital equivalency, Balboa Press will begin withholding taxes at the rate of 28% for U.S. citizens (or resident aliens) or 30% for nonresident aliens living outside the U.S. in accordance with U.S. tax law.

Back to top

What tax information can Balboa Press provide for me?

Balboa Press will provide a Form 1099-MISC or Form 1042-S stating royalties earned during a calendar year and the amount of withholding, to assist you in accurately reporting your royalty income. For further information please consult your professional tax consultant.

Back to top

When does Balboa Press mail the 1099-MISC or 1042-S?

By law Balboa Press is required to mail the previous year's Form 1099-MISC by Jan. 31 of the current year. For non-U.S. persons, the previous year's Form 1042-S will be mailed by March 15 of the current year.

Back to top

Why didn't I get a 1099-MISC this year?

If you were issued payment for less than $10.00, and did not have backup withholding in the previous calendar year, you will not receive a 1099-MISC.

If you were issued payment for $10.00 or more, or did have backup withholding in the previous calendar year, please check that the address we have on file for you is accurate.

Back to top

If I was paid under $10.00 in royalties, do I have to report it on my income tax?

For any questions on reporting your income to the IRS, please consult your professional tax consultant.

Back to top

Why is the income stated on my 1099-MISC or 1042-S form not equal to the sum of my royalty payments for the calendar year?

The tax form reports the total royalties income earned over the calendar year and taxes withheld. "Royalties income earned" is the amount of your cheques before withholding. Your payments equal the difference between your total income on the form and any taxes withheld. 

Back to top

When will Balboa Press post Quarter 4 royalties so I can complete my income tax return?

Quarter 4 royalties will not be paid to you until the following calendar year; therefore, Quarter 4 royalties will be included on the Form 1099-MISC or 1042-S you receive the following year.  Please refer to the Form 1099-MISC or 1042-S you may receive from Balboa Press to learn the amount of money that has been reported as royalty income (and withholding) for tax filing purposes. Form 1099-MISC will be mailed by Jan. 31of the current year, and Form 1042-S will be mailed by March 15.

Back to top


Tax Form Submission

I submitted a Form W-9 or a Form W-8BEN in the past.  Why am I being asked for it again?

If you receive a request from Balboa Press to submit your tax information, then we do not have your Form W-9 or W-8BEN in our system, and we need you to resubmit the appropriate form. We may not be able to assign a received tax form to your account due to an issue with matching your tax form with your author account, the tax form may include an incomplete address, or it could be another reason.

Back to top

I opted-out of submitting my tax information. Why does Balboa Press continue to request my tax information?

The IRS requires that we have a complete tax Form W-9 or W-8BEN on file even if an author has opted-out of submitting tax information. We are required to request the tax form annually.

Back to top

If my company should receive the royalties instead of me, as the author, what do I need to do?

First, an account for your company must be created in our system. To have an account created for the company, speak to customer support about a reassignment of rights. Second, a Form W-9 needs to be filled out for the company using the company EIN for the tax ID. Third, the company's W-9 must be submitted either online through the company's Balboa Press account, or by mail (be sure to reference the company's Balboa Press account number).

Back to top

My company's W-9 was accidentally added to my individual account (or vice versa). How can I correct this?

If your company's W-9 was added to your individual account, please correct by submitting your individual W-9 and referencing your individual Balboa Press account. Also, make sure that your company's W-9 is connected to your company's account. If your individual W-9 was added to your company's account, please correct by submitting your company W-9 and referencing your company Balboa Press account.  

Back to top


International Authors

I am an international author, what do I need to do regarding the tax forms and ID numbers?

You will need to submit a Form W-8BEN to Balboa Press. When filling out the form, please remember to include your IRS issued U.S. taxpayer identification number (ITIN for individuals, EIN for companies), your author account number, your country of citizenship, and claim to a lower tax treaty rate (if applicable). Even if you don't have a U.S. taxpayer identification number yet, you should still submit an initial Form W-8BEN to establish that you are not a U.S. person. Submit the Form W-8BEN once you have a U.S. taxpayer identification number in order to claim a reduced rate or exemption from withholding if your country has an income tax treaty with the United States.

Back to top

How do I know if my country has a tax treaty with the United States that allows me to claim a lower rate of withholding?

If applicable, you may claim a reduced rate of withholding as a resident of a foreign country with which the United States has an income tax treaty. See the Tax Treaty Tables within Internal Revenue Service (IRS) Publication 515 (see the helpful links below), "Withholding of Tax on Nonresident Aliens and Foreign Entities", under "Copyrights" for your country's tax treaty rate. Submit Form W-8BEN when requested by Balboa Press whether or not you are claiming a reduced rate of withholding.

Back to top

What if I don't have an ITIN?

If you do not have a Social Security Number (SSN) and are not eligible to get one, you must obtain an Individual Taxpayer Identification Number (ITIN) to claim your country's reduced tax treaty rate (if applicable). To apply for an ITIN, file Form W-7, "Application for IRS Individual Taxpayer Identification Number" (see helpful links below) with the IRS. It usually takes 4-6 weeks to receive an ITIN from the IRS.

Back to top

What if I don't have an EIN?

Companies may apply for a U.S. Employer Identification Number (EIN) by filing a Form SS-4 with the IRS.

Back to top

How do I file Form W-7 with the IRS (to obtain an ITIN)?

The W-7 tax form needs to be submitted by you, the author, to the IRS directly. This form is not processed or submitted by Balboa Press. Balboa Press can supply you with a support letter that will need to be submitted with Form W-7. Once this process is completed, the IRS will supply you with an ITIN. The ITIN will need to be included on the W-8BEN form that can be completed online through your secure author account or sent to Balboa Press directly. If you require a W-7 support letter, please make the request with customer support and be sure to include your author account number, legal name, and mailing address.

Back to top


1099-MISC

What is a 1099-MISC form?

Form 1099-MISC is used to report royalty income and backup withholding. The form is for each person who was issued payment for $10.00 or more in royalties during the calendar year or anyone who had backup withholding regardless of the $10.00 minimum.

Back to top

Who will receive a 1099-MISC form?

Authors who have been issued payment of $10.00 or more in royalties, or who have had backup withholding during the calendar year, will receive a 1099-MISC form. Form 1099-MISC applies to U.S. residents and U.S. resident aliens ONLY and is not sent to nonresident aliens or foreign persons. Nonresident aliens and foreign persons receive Form 1042-S.

Back to top

What if there is an error on the 1099-MISC form? Is it too late to make changes?

1099-MISC forms are not due to be filed with the IRS until March 31, so we still have time to make changes if necessary. Even after that, we can still file corrected forms with the IRS, so do not panic if something might be wrong.

Back to top

The amount on my 1099-MISC form doesn't match my cheques; what is wrong?

The amount of royalties reported on the 1099 is the gross amount of royalties paid before any backup withholding. The royalty amount should match the amount of royalties on your statements from Q4 of the previous year to Q3 of the 1099 year, plus any iPad or offset distribution royalties wherever applicable. Subtracting the withholding (box 4) from the royalty income (box 2) should equal the total monies paid to you during the 1099 year. If after careful analysis, you still believe there is an error, please contact Balboa Press customer support.

Back to top

One of my cheques was not received during the tax year. May I request a corrected 1099-MISC?

If the cheques was sent to the address on-file during the tax year, the 1099-MISC must include the income (and withholding if applicable) associated with the payment. If the cheques has still not been received, please contact customer support and request a re-cut.

Back to top

Why isn't there a "Recipient's Identification Number" on my 1099-MISC form?

The "Recipient's Identification Number" is the box that should include your U.S. Taxpayer Identification Number (TIN). U.S. persons should submit a Form W-9 to Balboa Press to report their Social Security Number (or EIN for a business). If we receive the update before the IRS filing deadline, March 31, we can guarantee that the updated form with the new identification number will be submitted to the IRS. We encourage online submission of the Form W-9 through your secure author account.

Please note: authors may incur a penalty from the IRS for failing to report their TIN or for providing an invalid TIN.

Back to top

The "Recipient's Identification Number" on my 1099-MISC form is incorrect; what do I do?

Submit a Form W-9 to provide Balboa Press with your corrected Social Security Number (or EIN for a business). If we receive the update before the IRS filing deadline, March 31, we can guarantee that the updated form with the new identification number will be submitted to the IRS. We encourage online submission of the Form W-9 through your secure author account.

Back to top

The "Recipient's name" on my 1099-MISC form is incorrect; what do I do?

The recipient name on your Form 1099-MISC is the person or entity who earned royalties income during the tax year. In most cases, the name must remain unchanged.

However, if you were the recipient of the royalty income during the year and there is a spelling error with the last name, then we may be able to issue a correction before filing with the IRS on March 31. To request a 1099-MISC name correction, contact Balboa Press customer support. 

Back to top

The "Recipient address" on my 1099-MISC form is incorrect; what do I do?

The IRS does not match addresses. If you have received the form, then there is no need to request a new form with an updated address. If you would like to update your address for future mailings, please contact Balboa Press customer support.

Back to top

I cannot locate my 1099-MISC form; how can I request a copy?

Please contact Balboa Press customer support and request a copy of your 1099-MISC form. Be sure to indicate the tax year. The copy can be e-mailed with the Taxpayer Identification Number masked, or sent by the post if necessary.

Back to top

Where can I find more information about my tax forms?

Check out these helpful links:


Back to top
Back to main FAQs directory