- Joined
- May 18, 2019
We might be seeing a major chimpout soon based on what this guy I watch posted 2 minutes ago.
Less coke, THC, and food? Oh no no no.
Good article on this topic: https://www.tubefilter.com/2021/04/30/youtube-creator-us-taxes-withholding-amount/
>How much will creators be taxed? That depends on their individual circumstances. YouTube is asking that creators send in their tax information by May 31, 2021, so it can determine how much tax to withhold.
If creators don’t send in their tax information by that date, YouTube will deduct 24% of worldwide, not just U.S.-based, earnings.
This is for two reasons: First, 24% of income is the standard amount of federal tax that self-employed people (which YouTubers are, according to the IRS) must pay. And second, if YouTube doesn’t have a creator’s tax information, it doesn’t know where they file taxes–so it’s possible they’d file in the U.S., and thus would need to pay 24% on all earnings, not just U.S. revenue.
Creators who live in countries that do not have tax treaties with the U.S. will also have their U.S.-based revenue taxed at 24%.
Turns out Canada does have a tax treaty with
So seems rather than making a video about it, perhaps contact his tax preparer to ensure he's having the correct amount withdrawn. And it's not about him paying taxes and receiving anything in return - it's because Google/Youtube is a US-based business as is Adsense and they are considered self-employed contractors on the platform who make money from US viewers. US Content creators, based on this blurb indicate that they pay taxes and I'm guessing in the form of a 1099 Self-employment annually.... and actually, yes, Google/Youtube does provide end of year 1099-MISC, 1099-K, 1042-S.
I'm not saying I agree nor disagree with this new tax - I'm just saying this Youtuber may not like it, but it is what it is. If anything the US tax he's paying is simply to be a creator in the form of an independent contractor for a US based company. It's not any different than say a contractor working for any other tech company.
ETA: If she made $5,000 USD in a month, that would be $1,200 of that withheld at the 24% rate, which is $1,511. CAD.. which offsets her VIB membership revenue or probably a full month's rent.
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