When Royalty Payments Are Made
AALBC provides authors with a monthly royalty statement showing book sales and the author’s share of royalties earned during the reporting period.
Royalties are generally paid approximately 90 days after the end of the month in which the sales are reported. AALBC issues payment shortly after receiving the funds associated with those sales.
For example:
Therefore, if your July royalty statement shows that you earned $125 in royalties, the $125 would generally be paid in early November, rather than when you receive the statement in August. Author royalties are calculated from publisher compensation earned on reported sales, after applicable printing costs, returns, and other adjustments.
The monthly statement allows you to see your sales and royalties as they are reported, even though payment for those royalties occurs approximately three months later.
Tax Reporting of Royalties and Recoupable Expenses
AALBC provides authors with royalty statements that distinguish between gross royalties, recoupable expenses, and net payments. This information is provided to help authors maintain accurate records and reconcile their royalty statements with year-end tax documents.
For authors receiving copyright royalties that are reportable on Form 1099-MISC, AALBC reports the applicable gross royalty amount before deductions for fees, commissions, or expenses, in accordance with IRS reporting requirements. This means the royalty amount reported on your Form 1099-MISC may be greater than the amount actually paid to you during the year. The IRS specifically instructs publishers making direct royalty payments to authors to report gross royalties before reduction for fees, commissions, or expenses.
For example:
The $1,200 in recoupable expenses does not simply disappear for tax purposes. Your AALBC royalty statements provide a record of these expenses so that you and your tax professional can determine whether, and to what extent, they may be deductible on your tax return.
Whether a particular expense qualifies as a tax deduction depends on the nature of the expense and your individual tax circumstances. AALBC cannot determine the deductibility of an expense for you or provide individual tax advice. Please retain your royalty statements with your tax records and consult a qualified tax professional if you have questions about reporting royalty income or related expenses.
For additional information, see the IRS Instructions for Forms 1099-MISC and 1099-NEC and the IRS information page for Form 1099-MISC.
The IRS’s 2026 instructions continue to list royalties under Form 1099-MISC, Box 2, but filing-threshold requirements may change. Authors should consult their tax professional regarding their individual reporting obligations, and AALBC will follow the applicable IRS requirements when preparing year-end tax documents.
