YouTube recently announced that it’s making platform-wide changes to the way monetizing creators outside of the US are taxed. Therefore, if you earn any money from your channel and you don’t live in the US, you need to be aware of how these changes could affect you. Even if you live in the US, you could still benefit from understanding the changes that are happening.
Here’s what creators outside the US need to know about taxes.
Taxes may be deducted from your US earnings later this year.
YouTube and Google, its parent company, are both based in the US. Therefore, they’re beholden to the third chapter of the US Internal Revenue Code, which requires them to collect tax information for each and every creator outside of the country who has a monetized channel. By using YouTube and participating in the YouTube Partner Program, you’ve agreed to this.
In some cases, YouTube also has a responsibility to deduct taxes from creators who earn revenue from US-based viewers. This income isn’t limited to ad revenue you’ve earned when American viewers watch your videos. It includes any money you’ve earned through Channel Memberships, Super Chats, or Super Stickers purchased by fans from the US as well.
You need to submit your tax information to Google AdSense.
Over the course of the next few weeks, creators outside the US with monetized channels will be prompted to submit their tax information to Google AdSense. First, go to your AdSense home page. Then, in the left sidebar, select “Payments.” Under “Settings,” click on “Manage settings.” Towards the bottom, you’ll find a section labeled “United States tax info.” In that box, select “manage tax info.”
Answer the series of questions it presents you with. This will determine which tax form you need. To make things more convenient for you, the appropriate form will be made available in the language you have your AdSense account set to, not just English.
The amount you’ll be taxed depends on several key factors.
Not every creator will be taxed the same amount. There are several important determining factors to consider. First is whether or not your valid tax form has been submitted. The earlier you can submit it, the more time you’ll have to ensure you’ve done it correctly. Next, YouTube will look at how much you’re earning from US-based viewers. To get a general idea, look at your viewer demographics in YouTube Studio. The more views you have coming from the US, the more you’re likely to be taxed. Add “revenue” as a second metric in your channel demographics chart to see an estimate of how much you’ve earned from US viewers.
The final thing taken into consideration depends on the country you’re in. Any tax treaties your country has with the US could impact the amount you’re taxed. Do your research on tax treaties between your country and the US. You’ll likely have to claim the benefits manually, so you might consider consulting a tax advisor or accountant.
For a more detailed look at what each of these factors means, be sure to watch the video below.
As a creator, it’s important that you stay on top of your finances, especially your taxes. Important tax changes are coming for creators outside the US, so make sure you’re prepared.
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Kristen Harris enjoys listening to a wide range of music, from Taylor Swift to, on occasion, Celtic instrumental. She also spends her time writing, reading, and baking.