If you're a YouTuber who lives outside the US, you may have taxes deducted from your
US earnings later on this year. If you fail to provide your tax information, Google may
be required to deduct 24% of your total earnings worldwide.
Stay tuned throughout the video to understand why YouTube is withholding US taxes from YouTube
creators, how this affects creators' earnings outside the US, how to submit your tax info
to Google, and how this will affect your income on YouTube. Subscribe and click the bell notification
icon if you want to be notified about how to generate traffic, leads, and sales on autopilot
from YouTube. Why is Google doing this? Google is required
to collect taxes from creators that are participating in the YouTube Partner Program. If you remember
the YouTube Partner Program, you can generate ad revenue from ads that are being displayed
on your YouTube videos. You can also generate revenue from Super Chat, Super Stickers, and
Channel Memberships. If you are a creator that lives outside the
US, Google will begin deducting taxes from the earnings you receive from viewers in the
US. If you're a creator that lives in the US, like myself, then you probably already
submitted your tax info. Later on, I'll show you the steps to submit your tax information
to Google. Keep in mind that if your tax information
is not submitted to Google by May 31st, 2021, Google may deduct up to 24% of your total
worldwide earnings. Man, that really sucks. How do you know if the US tax requirements
apply to your country? Every YouTube creator regardless of their location in the world
must submit their tax information to Google. If you're a creator outside the US, withholding
rates can be between 0 and 30% based on the earnings you receive from US viewers. It also
depends if your country has a treaty relationship with the US. Click the link in the description
to find out if your country has a treaty with the US.
For US creators, if you've provided valid tax information, Google won't withhold taxes
from your earnings. An important thing to keep in mind is that if you don't submit any
tax information, Google may withhold the maximum tax rate. This will depend on your AdSense
account type and the country where you live. Is there any difference in the tax rate between
a business account or an individual account? The default withholding rate for a business
account is 30% of US earnings. If the person to be paid lives outside the US, they'll be
subject to a 24% withholding on their total worldwide earnings. If you have an individual
account, 24% of your total earnings worldwide will be withheld. Keep in mind these withholding
rates will be adjusted based upon the next payment cycle and after you've submitted your
tax information. How will this tax change affect your income?
If you've provided valid tax information, only a portion of the earnings you receive
from viewers in the US will be withheld as tax. Here is a hypothetical example. If a
creator from India earns $1,000 and $100 of that is from US viewers, and he withholds
tax information, he has to pay up to 24% of his total earnings worldwide. That means he
has to pay $240 out of the $1,000 that he earned. If his country has a treaty with the
US and he submits his tax information, his final tax deduction will only be $15. This
is because India and the US have a tax treaty relationship which reduces the tax rate to
15% of the earnings for viewers in the US. The third scenario is where the country doesn't
have a treaty with the US but the person submits their tax information. The final tax deduction
will be 30 USD because if a country doesn't have a tax treaty with the US, the tax rate
will be 30% of the earnings of viewers from the US. How will this affect the income of
non-US creators? Number one, if you don't submit your tax info and your country doesn't
have a treaty with the US, you'll pay a higher tax rate. Number two, you'll pay a smaller
tax rate if your country has a treaty with the US and you submit your tax information.
Number three, if your country doesn't have a treaty with the US, submit your tax information
anyway so you avoid paying a higher tax rate. Here's your action step. Submit your tax information
to Google now whether you have a treaty with the US or not so you avoid paying a high tax
rate on your US earnings. Here are the steps to submit your tax info to Google. Go to your
Google AdSense account at google.com/adsense. Click on "Sign in", click on "Payments", click
on "Manage Settings", scroll down to "Payment profile", click the pencil icon that says
"United States tax info", click "Manage tax info". I've already submitted my tax information,
but you'll find a guide that will help you to select the appropriate form for your tax
situation. Let me ask you a question. Will you be submitting
your tax information to Google if you live outside the US? Post your answer in the comments
below. I'd love to read them, and I'm sure others would too. How can a small creator
that's not in the YouTube Partner Program make more money from YouTube now that YouTube
is deducting more of their worldwide tax earnings? Watch the video on the screen right now on
how to monetize YouTube videos without 4,000 watch hours and 1,000 subscribers.