Changes to YouTube Earnings | Tax Requirements and Adsense Payment Accounts for Monetizing Creators

This update is important for ALL monetizing creators OUTSIDE of the U.S. 

In this video we'll walk you through how to submit your required U.S. tax information in AdSense: https://www.google.com/adsense​

Note: this does not affect Creators in the U.S., as they should have already submitted their U.S. tax information in AdSense when they first joined the YouTube Partner Program.

If you’re a creator outside of the U.S., you may begin to have taxes deducted from your U.S. earnings later this year (2021). Google has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax information from all monetizing creators outside of the U.S. And, in certain instances, to deduct taxes when these creators earn income from viewers in the U.S. These U.S. earnings can come from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships.   

Google will be required to deduct U.S. taxes from payments to creators outside of the U.S. later this year (as early as June 2021). Over the next few weeks, Youtube will be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.

 

What do creators need to do?

All monetizing creators on YouTube, regardless of their location in the world, are required to provide tax info. Youtube requires creators to submit your tax info as soon as possible. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total earnings worldwide. 

In the next few weeks you will receive an email to submit your tax information in AdSense. The online tax tool in AdSense is six steps and will ask you a series of questions to guide you through the process to determine if any U.S. taxes apply. For more information on these changes and a list of tax info to prepare, visit Help Center.

 

Over the next few weeks, you’ll be asked to submit your tax information in AdSense. This video shows you what you need to do. pic.twitter.com/QCNrQ8oQPf

— YouTube Creators (@YouTubeCreators) March 9, 2021

Why is this happening?

Google has a responsibility under Chapter 3 of the U.S. Internal Revenue Code to collect tax info from all monetizing creators outside of the U.S. and deduct taxes in certain instances when they earn income from viewers in the U.S.

 

For creators outside of the U.S., youtube will soon be updating Terms of Service where your earnings from YouTube will be considered royalties from a U.S. tax perspective. This may impact the way your earnings are taxed, and as required by U.S. law, Google will deduct taxes.

 

How will my earnings be impacted?

If you provide your tax info, U.S. taxes may only be applied to your monthly U.S. earnings from AdSense (revenue earned from viewers in the U.S. through ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships). If no tax info is provided, your tax rate may default to the higher individual backup withholding rate (24% of total earnings worldwide). To estimate the potential impact on your earnings follow these instructions.

How to submit your U.S. Tax Information

You can follow the instructions below to submit your U.S. tax info to Google. Note that you may be asked to re-submit tax info every three years.

1. Sign in to your AdSense account.
2. Click Payments.
3. Click Manage settings.
4. Scroll to "Payments profile" and click edit Edit next to "United States tax info".
5. Click Manage tax information.
6. On this page you'll find a guide that will help you to select the appropriate form for your tax situation.

Tip: After you submit your tax information, follow the instructions above to check the “United States tax info” section of your Payments profile to find the tax withholding rates that may apply to your payments.

 

You’ll also be able to make any edits in case your individual or business circumstances change. If you've changed your address, make sure your updated permanent address is the same in both sections: "Permanent residence address" and "Legal address". This will ensure that your year-end tax forms (e.g., 1099-MISC, 1099-K, 1042-S) are delivered to the correct location. If you’re in the US, you must resubmit your W-9 form with your updated legal address

See below related links for more information: 

• U.S. tax requirements for YouTube earnings
• Tax requirements for MCNs and affiliate channels
• Submitting your U.S. tax info to Google
• Check your AdSense account type
• For info on U.S. Tax Treaties

A new way to manage and view your YouTube earnings

Starting in March 2022 and rolling out over the next few months, you will have a dedicated way to view your YouTube earnings. Instead of combining YouTube with other AdSense earnings in one payments account, YouTube earnings will appear in a separate payments account.

What does this mean?

• For users with YouTube and other AdSense earnings, you will be able to manage and view your YouTube earnings in a separate payments account accessible from the Payments page.

What do I need to do?

• No action is needed. Moving forward, all your YouTube earnings will be posted to your YouTube payments account and any existing form of payment or custom payment thresholds will automatically be applied.

Will this impact my earnings?

• The amount you earn will not change, however users with both YouTube and other AdSense earnings will have two separate payment accounts. Each payment account will need to reach the payment threshold which could influence your disbursement timing. • If you have unpaid YouTube earnings, those will be transferred to the new YouTube payments account. • Previously paid YouTube earnings and any other AdSense earnings will remain associated with your AdSense payments account.