TheQuartering [3/9/2021]
Yikes. Looks like YouTube needs more money, and they’re taking it from people outside the US.
YouTube makes it fairly easy for anyone with talent and determination to make some cash off of producing videos, and many even manage to make a living off of the platform. This year, though, many creators may face issues as YouTube is preparing to deduct tax fees for the US for all creators, even those who don’t live in the region.
An email going out to YouTube creators who live abroad today notifies of a change to YouTube’s payments. Apparently, Google is now required to deduct taxes for the United States from all channels, even those owned by creators who don’t reside in the United States. The email reads:
“We’re reaching out because 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, we’ll 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 31st, 2021, Google may be required to deduct up to 24% of your total earnings worldwide.”
This change to how YouTube handles taxes comes from the US government, specifically under Chapter 3 of the US Internal Revenue Code. Google has the responsibility to collect tax info from all monetizing creators outside of the US and withhold taxes when income is earned from viewers within the US. That means that not all income will be affected, but only that earned from viewers within the United States. A brief video from YouTube explains all of the changes.