1099-MISC vs 1042-S

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Frankd1
Posts: 107
Joined: Tue Feb 14, 2012 9:58 am
Location: Canada

1099-MISC vs 1042-S

Post by Frankd1 »

Just wanted to make sure of my understanding on this...it's for my wife who is a USC and PR of Canada, she lives and works in Canada.
She has a small sole proprietor home business, she is a self published children's picture book author.

She is going through the process of setting up an account with a print on demand/distribution company which is based in the USA. This is for her second book which is going through its final edits.

Any time one of her books is sold through a source like Amazon or any time a book retailer/store orders copies of her book for their shelves, the print on demand company will print the books and send them to the retailer or to the person who orders from Amazon.

My wife would receive payments directly deposited to her bank account here in Canada via emt, or if she chooses, to her Canadian paypal account. The payments in USD would be converted to CAD through paypal.

The print on demand company is paying my wife her portion of the revenues or I guess they would be royalties.

1. Do I understand correctly that at the end of the year, the print on demand company will send her a 1099-MISC and not a 1042-S? Because even though she lives in Canada, she is a USC with an SSN..

2. If I'm not mistaken, there should be no withholding on this? She is not being paid by a publisher, rather she is the publisher and is getting a cut of her royalties or revenues from these books directly from the print company..

Thank you
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