Thursday, October 6, 2022

Google will take away about a quarter of YouTubers' earnings

Google will take away about a quarter of YouTubers' earnings

NEW YORK (Web Desk) - Shocking news for YouTubers who own monetized channel as YouTube - the world’s largest video-sharing website - has announced on Thursday that Google will deduct about a quarter of YouTubers' earnings, up to 24 per cent to be precise, in withholding tax from June.

 It was informed by the "YouTube Creators" through its tweet. In a tweet, the tech giant asked YouTubers to submit their tax forms in AdSense as soon as possible.

The YouTube Creators told, "Google may begin withholding US taxes on earnings that you generate from viewers in the US as early as June 2021, Please submit your US tax info in AdSense 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. If you’re a creator in the US, you may have already submitted your tax info. Check your tax info in your AdSense account to be sure."

It is pertinent to mention here that under the US tax laws, YouTube is responsible for collecting tax information from all monetized content creators outside the US, and, in certain cases, deduct taxes where these creators generate income from viewers in the US. These earnings can come from ad views, YouTube premium, Super Chat, Super Stickers and channel memberships.

How to submit tax info to Google

To help with submitting your US tax info in AdSense, we’ve collected some useful FAQs you can use for reference. These will help you understand more details around the information you’ll need to provide when submitting your US tax info to Google.

While the questions in the tax form are available in your AdSense supported language, the fields in the tax form only support upper- or lower-case letters (a-z, A-Z), numbers (0-9), spaces, hyphens (-) and ampersands (&). This is due to tax reporting requirements by the Internal Revenue Service (the US tax authority, also known as the IRS).

Note: YouTube and Google can’t provide advice on tax issues. Consult a tax professional to better understand your tax situation.

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.

  • Sign in to your AdSense account.
  • Click Payments.
  • Click Manage settings.
  • Scroll to "Payments profile" and click edit Edit next to "United States tax info".
  • Click Manage tax information.
  • 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