fbpx
US Tax Requirements For YouTube Earnings

The Guide On US Tax Requirements For YouTube Earnings

YouTube taxes are complex to understand for many tax players in the United States. 

If you want to be a part of a race where many social media influencers make good big bucks, you need to deal with many aspects than just having good followers. And if you are already creating content on Youtube, you come in the category of SELF EMPLOYED which you can’t ignore! 

So now that you are the owner of the business on the YouTube platform, you have to deal with underlying taxes at the same time.

As per the US tax Requirements For YouTube Earnings, Google is required to deduct taxes from its YouTube earnings. This means, all the content creators on YouTube have to pay taxes on the earnings they have generated from viewers. For all YouTube creators, there are some important tax charges and requirements coming the way that they can’t ignore.

The US tax requirements For YouTube Earnings can differ based on the country where the creator resides. So we are here with a guide for you on US tax requirements for YouTube earnings that content creators like you can follow to start making earnings from YouTube. 

Things To Keep In Mind When Filing Taxes As A US-Based Video Creator

Before we get into tax requirements, let’s go over some basics that every YouTuber or video producer online should know:

1. Don’t Hide Your Earnings & Informed To IRS

YouTubers who received $400 or more in 2018 must-have reported to the IRS. If you are the one who earned over $600 in 2018, you legally have to fill 1099 form compelled by Google. 

Also Read: How Do I Get My 1099 From YouTube?

2. All Rules & Regulations Are Well-Defined From IRS Side

Most YouTubers feel that tax deductions are a “GRAY AREA”, especially at the time of declaring income. They found them in a situation where it is quite difficult for them to judge what is right and what is wrong. 

But the fact is – There are no gray areas for the IRS. An IRS sheds light on every essential aspect of financial history and reveals every penny of unreported revenue and personal expenses. 

Because the IRS recognizes the costs of running a business on YouTube, there are deductions available from their end. That’s the reason hiding money from them is a silly thing.

Also Read: Top 10 Tax Deductions For YouTubers

3. Gather The Understanding of File Extension; On Paperwork Not Payment

For many people, filing taxes in the United States is a daunting task. However, you must be aware that the IRS does not provide an option to file an extension if you require one. The extension is straightforward: it’s an extension of time to file, not time to pay.

4. Understanding New Tax Rules To Start Earning From YouTube

Google deducts US taxes from earnings produced by US viewers. Creators are now required to submit their US tax information in AdSense so Google can figure out the accurate withholding rate. If proper tax information is not provided, Google may be compelled to withhold the at the maximum rate.

The YouTube Partner Program requires Google to collect complete tax information from content creators. If any of the tax deductions apply, Google has the full right to withhold taxes on YouTube profits from ad views, YouTube Premium, and Channel Memberships.

5. Providing Tax Information To Google Is Important

Regardless of where they are in the globe, all monetized U.S. YouTube creators are expected to provide tax information to Google. So if you are the one, you must provide tax information as soon as possible. In case you fail to provide tax information, Google has to forcefully deduct up to 24% of your total earnings. 

Below are step-by-step instructions you can follow to submit your tax information. You might also be asked for the resubmission of tax information every three years. And while submitting tax forms, you make sure to fill the form only in Latin characters as per the IRS requirement. 

  • You have to sign in to your AdSense account using the credentials.
  • In the next step, you have to click on Payments.
  • Further, move on the Manage Settings.
  • Scroll to the “Payments Profile” and then click on Edit which is next to the United States tax info.
  • Click on Manage tax info to be in charge of your information. 
  • On this page, you will also find a guide that helps you select the appropriate form as per the tax situation.  

Following the above guidelines, you can further visit “United States Tax Info” which is a part of your Payments Profile. Using the option, you can start learning about the tax withholding rates that may apply to your payments once you are done with the submission of your tax information. 

You can make changes as per your personal or professional circumstances. If your permanent address changed, make sure to update that in both the “Permanent Home Address” and “Legal Address” sections.

If you go with the right information, all of your year-end tax forms will be delivered to the right location. If you are a resident of the United States, you make sure to change the legal address on the W-9 form.

Also Read: 9 YouTube Tax Forms You Must Know About As a YouTube Creator

Alan Chen Freecashflow.io

Book A Call Now

Where Do US Tax Requirements For YouTube Earnings Apply?

Every YPP creator, no matter where they are in the world, is obligated to report Google with their US tax information. If the profile meets the criteria, Google is compelled by US tax law to deduct taxes from your YouTube revenues from US viewers. 

Depending on the place, whether you’re qualified for tax benefits or not, the tax withholding requirements may differ.

For YouTube Creators Outside Of The United States

For those who are outside of the U.S., some important tax changes may affect their earnings. 

What Are The New Tax Rules?

If creators submit U.S. tax information, their withholding rates are between 0-30% on earnings they generate from U.S. viewers. The rates also depend upon whether the country where the creator maintains a treaty relationship with the US or not. 

If the tax deductions apply, Google will deduct taxes on YouTube earnings from viewers in the U.S. from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships. 

For U.S. Creators

YouTube creators in the United States who earn a lot of money have some tax obligations. If you supply accurate tax information, Google will not withhold taxes from your profits. The majority of American creators have already filed their tax information.

For The Non-U.S. Content Creators

The tax rates on earnings generated by viewers in the United States will range from 0% to 30%. If the information is not submitted by the deadline, Google may be forced to deduct up to 24% of the total earnings worldwide, according to the company.

The requirements differ depending on the creator’s location, as well as considerations like whether they are eligible for tax treaty benefits and whether they identify as an individual or a business. As far as the U.S. creators are concerned, the statement said that Google will not withhold taxes on earnings if they have provided valid tax info as most U.S. 

For Business Account Type

If the payee is outside the U.S., the withholding rate would be 30% of the U.S. earnings by default. United States businesses will be subject to 24% withholding on total earnings. 

Conclusion

YouTube is all set to deduct taxes from influencers of the United States on earnings generated from US viewers. It’s your time for you to prepare well. If you want to minimize your tax bills, you can contact us. Our mission at FreeCashFlow is to help you with tax-saving and capital needs.

State By State Sales Tax

Washington 

Montana

North Dakota

South Dakota

Minnesota

Wisconsin

Michigan

New York 

Maine

Pennsylvania

California 

Virginia

West Virginia

North Carolina

South Carolina

Florida 

Alabama

Texas

Louisiana

Mississippi 

Alaska

Arizona

Arkansas

Colorado

Connecticut

Delaware

Georgia

Hawaii 

Idaho 

Illinois

New Jersey

New Mexico

Ohio

Oklahoma 

Oregon

Indiana

Lowa

Kansas

Kentucky

Maryland

Massachusetts

Missouri

Nebraska

Nevada

New Hampshire

Rhode Island

Tennessee

Utah

Vermont

Wyoming

Want Help With Taxes And Accounting As An Influencer?

Alan Chen Freecashflow.io

Book A Call Now

Free E-book for E-Commerce Entrepreneurs

9 Most Crucial eCOM Tax Deducations The IRS Doesn’t Want You to Know

Explore More

What Is A Good ROI For Amazon FBA?
Blog

What Is A Good ROI For Amazon FBA?

What Is A Good ROI For Amazon FBA? In this article, you will learn: What Is Return On Investment (ROI)? How Do You Calculate ROI

Best Sales Tax Software For E-commerce
Blog

5 Best Sales Tax Software For E-Commerce

5 Best Sales Tax Software For E-Commerce In this article, you will learn: How To Choose A Sales Tax Compliance Software Partner For Your E-Commerce

Boost Your E-Commerce Business Now

drop us a line and keep in touch
Alan Chen

Schedule Your Call with Alan!

Hate working with accountants that don’t understand your online business?

By the end of this Strategy Session, you will have a clear understanding of the next steps you can take.

 This Call Is Completely FREE.

Have Urgent Questions You Need Answered?

Book a FREE consultation call with Alan and talk to a CPA who actually understands and cares for your business.

Alan Chen