I recently helped an author navigate the Draft2Digital (D2D) tax interview process. After also recently working through the Amazon KDP Tax Interview, I was hoping for something similar. Unfortunately, what I found was a process (much) less polished than it’s Amazon counterpart.
What follows is a short and (hopefully) simple tutorial to help you better understand the mandatory tax questionnaire presented by Draft2Digital to its authors.
PS. The D2D website is not particularly mobile friendly, I would recommend rather competing the tax interview on a larger screen device.
👉 If this tutorial helps you, would you mind leaving a comment? 👇🙏
WHAT?
The Draft2Digital tax interview is a short online process, mandatory for the indie author looking to publish using the platform. As part of their duties, D2D needs to report any royalty-payments made to the US tax authority (IRS). This online interview is how they better understand you from a tax standpoint.
WHY?
Here is what Draft2Digital’s support pages say of the tax interview:
“All accounts must complete tax verification before publication is allowed. As a part of our efforts to ensure compliance with tax regulations, we are now asking for tax information at the time of account creation. You must submit a tax form, even if you intend to list your book(s) for free.”
What happens should you not complete or fail to renew your D2D tax interview?
30% of any earnings will be withheld. Apparently, Draft2Digital is unable to refund withholding taxes that have already been deducted, so the sooner you complete the tax interview process, the better.
WHEN?
Similar to the Amazon KDP tax interview process, this interview will need to be completed when first creating your account with Draft2Digital. It also needs to be renewed every few years. (I’m unsure the exact renewal timeline for D2D)
WHERE?
The tax interview is buried beneath the ACCOUNT pages within the D2D platform. Assuming your D2D account has already been created, here’s a shortcut to take you directly to the right place.
Disclaimer
My goal is to get you to the other side of this interview process with your sanity intact. The personal information used within the interview process is unique to me and my country of residence (South Africa.) Please don’t blindly copy information from the tutorial without first confirming that it’s correct for you and your unique situation.
What information is required by D2D during the tax interview process?
- Full name
- Country of citizenship
- Country of tax residence
- Permanent address
- Mailing address
- Taxpayer Identification Number (TIN)
Draft2Digital Tax Interview Tutorial
Step 1: Finding the Draft2Digital Tax Interview
D2D Home Page
- Start at the D2D homepage [www.draft2digital.com]
- Select either the Log In or SIGN UP buttons, depending on if you already have an account.
- If you already had an account, this link takes you directly to the right place. [www.draft2digital.com/account/paymentmethod]
Step 2: Finding the Draft2Digital Tax Interview
Your Dashboard (Default Screen)
- Once logged into your D2D dashboard, select the ACCOUNT link in the blue menu bar at the top of the screen.
- Then select the orange link “Payment Options – How D2D Pays You”
Unlike Amazon KDP, there are no visible alerts (yet) that our tax interview has expired.
Step 3: Finding the Draft2Digital Tax Interview
D2D Payment Methods
- If you’re visiting this page for the first time, please first ensure your payment methods are correctly setup to collect your royalties from Draft2Digital.
- D2D is able to pay authors through one of the following options: Check, Direct Deposit (US), Direct Deposit (International), PayPal, Payoneer.
- Once ready, select the bright orange LAUNCH INTERVIEW button.
The error box below with the title INVALID INFORMATION is showing as I need to renew the tax interview. Not sure why they can’t just say that… 🤷♂️
Step4: D2D Tax Verification Interview
What to Expect
- Read through the bulleted information on what to expect from the interview process.
- Once ready, select the CONTINUE button.
- You got this.
Step4a: D2D Tax Verification Interview
Individual or Business?
1. Individual or business? (Select one or the other.)
- In my own name…(Individual)
- OR on behalf of a Corporation, Trust, Partnership or LLC…(Business)
Just a tip, I’ve found completing this interview as an individual person/ author much easier than attempting the interview as a business.
2. Consent
We require your consent so that we may collect information to comply with US IRS tax regulations, which may include using a 3rd party to process your personal information.
Please select: (Yes/ No)
3. Identity information
- First name
- Last name
- Business, Trade, DBA or Single-Member LLC Name (I leave blank, as I am taking the interview as an individual.)
- Date of Birth (I left blank)
- Country of Citizenship? (Answer appropriately.)
Step4b: D2D Tax Verification Interview
Permanent Address
- Enter your physical address
- Confirm via the tick box at the bottom if your mailing address is different to your physical address
- Select the orange CONTINUE button
- D2D then asks me again to confirm my physical address before progressing.
Step4c: D2D Tax Verification Interview
Consent for Electronic Signature and Information Returns
- I consent to providing my electronic signature. (Yes/ No)
- I consent to electronic receipt of my information reporting documentation. (Yes/ No)
Select CONTINUE when ready.
Step4d: D2D Tax Verification Interview
Tax Status
- For tax purposes, are you a U.S. citizen, U.S. resident, U.S. partnership, or U.S. corporation? (Yes/ No)
- Answer appropriately
I’m asked again to confirm: Type of Beneficial Owner
I’m happy with the answer “Individual” and again select CONTINUE.
Step4e: D2D Tax Verification Interview
US Person Tests
- Complete the selection of tick boxes according to your unique situation.
- Select CONTINUE
As a very boring South African with very little time spent in the US, I only select the final tick box.
Step4f: D2D Tax Verification Interview
Treaty Benefits
- Confirm your resident country for tax purposes
- Select CONTINUE
(Sorry to those Russian authors who have had their tax treaty recently revoked…)
Countries who have tax treaties with the US.
Step4g: D2D Tax Verification Interview
Tax Identification Number (TIN)
- Do you have a Tax Identification number? (Yes/ No)
- If yes, enter your TIN in the appropriate space. Avoid adding spaces, dashes or slashes to your TIN.
- Confirm it’s correct
- Select CONTINUE
No TIN?
Completing the tax interview process without a valid tax ID number, whilst possible, will mean the author will have 30% of their royalty payments withheld.
Learn more about applying for an ITIN from outside the US.
Step4h: D2D Tax Verification Interview
Effectively Connected Income
- Do you own and or operate a business in the United States selling services, products, or merchandise? (Yes/ No)
- Select CONTINUE
Step4i: D2D Tax Verification Interview
Review
- This is simply a summary of the feedback given during the D2D tax interview thus far.
- You’re able to print the tax form summary if you were unsure that you answered correctly and wanted to ask your accountants for their approval.
Step4j: D2D Tax Verification Interview
Sign & Submit, W-8BEN Certification
- Select the appropriate tick boxes
- Provide your digital signature, including the email address linked to your D2D account and certify that you are authorised to sign.
- Select the orange “Submit W-8BEN” button.
- Finally, I select the EXIT INTERVIEW button
Interview Done ♥
(Just to be safe, I finish by clicking the SUBMIT button at the bottom right of the screen.)
Further Reading
- Unfortunately, there is not a great amount of information available online for those looking to better research the D2D Tax interview process.
- Here’s my tutorial guiding you through the Amazon KDP Tax Interview
- How to apply for an ITIN from outside of the US.
- Advice on reducing the 30% withholding for Non-US publishers.
// Article dedicated to Rebecca
