# Am I being charged more or there's some new tax?

#1

There’s a sale from US and after the deduction of RW Tax I should be given \$4.25 but my balance shows \$3.79. Am I missing something, and I submitted the W-8 form long back already.

Item price - \$12

Can someone please look at this and clarify my doubt?

I don’t know if I can display those numbers so, I hid them anyway.

#2

Your item price is \$8. That’s the \$3 and the \$5 you’re seeing in your statement. The list price is \$12, which is the \$8 plus the \$4 buyers fee. The deduction 's in red equate to an author fee of 37.5% which is correct if you’ve sold less than \$3,750.

And based on the amounts, you’re having 15% tax withheld. If that right, based on your location, then it all looks right to me.

How did you arrive at the \$4.25?

#3

this calculation is wrong
\$8.00 - 37.5% = \$5.00
\$5.00 - 15% = \$4.25

You pay US withholding tax and author fee based on your gross income
\$8.00 * 0.375 = \$3.00
\$8.00 * 0.15 = \$1.20
\$8.00 - \$3.00 - \$1.20 = \$3.80

#4

Thank you @Sealord and @SpaceStockFootage.

Seems I’ve been doing tax calculations wrong all these days. My math teacher was right, I really suck at math. And these taxes suck me equally good.