YouTube To Start Deducting Taxes From Non-US Content Creators

As if YouTubers from outside of the United States were not facing enough challenges as it is, they will soon have one more thing to worry about. That’s because YouTube has recently announced its decision to start deducing taxes from US earnings of all non-US content creators.

The video streaming platform says that it is required by Chapter 3 of the US Internal Revenue Code to collect tax information from all creators outside of the US.

“Over the next few weeks, we’ll be asking you to submit your tax info in AdSense to determine the correct amount of taxes to deduct, if any apply,” explained Google in an email sent to affected YouTubers. “If your tax info isn’t provided by May 31st, 2021, Google may be required to deduct up to 24 percent of your total earnings worldwide.”

In practice, this means that a content creator earning $1,000 from YouTube every month would lose $2,880 each year by choosing not to submit their tax information. If the same YouTube submitted their tax information, only their US earnings would be taxed, so the annual figure would most likely be significantly lower.

Calculating just how much lower it would really be is fairly easy:

1. Log in to your YouTube account and go to YouTube Analytics > Advanced Mode.
2. Select a date range in the top-right corner of the analytics page.
3. Click the Geography button in the main menu bar and select the United States.

You should now be able to see how much of your total YouTube revenue will be subject to US taxes.

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YouTube gives content creators until May 31st, 2021 to submit their tax information, and the company is planning to start deducing taxes on US earnings as early as June. To avoid missing the deadline, you can update your AdSense account right now:

1. Log in to your AdSense account.
2. Navigate to Payments > Manage Settings.
3. Click Manage Tax Info under United States tax info.