There can be a few ways that you receive notifications of income. Predominately, you should be receiving a Form 1099-Misc. for Royalties. It is possible that you could be an employee and receive W-2 wages, but I won't bother with that because it is a moot point for what we're talking about here.
See the IRS form here.
Wondering what to do with it? Most likely you'll be reporting the income on Schedule C, see my post about business income for a more in-depth explanation.
Be certain, especially if you're using an outside source to sell your books, you have detailed reports to match against the amount reported to you on the form. You should track deposits in an accounting software package or an advanced spreadsheet or database to verify that all the numbers agree. Obviously you want to keep track of your expenses and costs related to your book sales too!
See the IRS form here.
Wondering what to do with it? Most likely you'll be reporting the income on Schedule C, see my post about business income for a more in-depth explanation.
Be certain, especially if you're using an outside source to sell your books, you have detailed reports to match against the amount reported to you on the form. You should track deposits in an accounting software package or an advanced spreadsheet or database to verify that all the numbers agree. Obviously you want to keep track of your expenses and costs related to your book sales too!
