Questions of the Day ⚡ Where do you live in the world? Is your channel monetized? Let me know! 👇 ************ NEW VIDEO 💣 How to Make $500 a Week with a Small RUclips Channel (Without RUclips AdSense) 👉👉 WATCH HERE 👉👉 ruclips.net/video/q6kNPOwj97s/видео.html
I'm from Jamaica but I already full out the tax form W-8BEN and its saying Approved but I receive the same email yesterday from RUclips saying that I need to submit my tax!
Australia - and I’m not worried cause I’m only a ‘babyTuber’ and my goal for the next few years is to enjoy myself whilst levelling up creating better and better content - Cheers Sean!
Is it just me or does Sean look like he's crying having to say this ? He's having a tough time. No worries brother, most of us have submitted that tax info to not get hurt on that tax 😀
This is the biggest scam by the USA government, why should people outside the US pay tax to the US? We need to pay tax to our own government as earnings in our own country. The US government should not be using vendors to collect tax, especially outside the US. Imagine if they did this with every product, it would be a international nightmare, you need to pay tax to every country you may sell a product in! Crazy! Thanks Mr B!don
If someone earns money by doing business in the US they must pay US income taxes. Every country as far as I know operates this way: if you're a US citizen and resident, and make money from your business in Germany, or Mexico, or in the UK, for example, you have to pay income tax to Germany, or to Mexico, or to the UK, on the income you earned by doing business in those countries. And as a US citizen and resident, you report that foreign earned income, along with US income, on your Form 1040, and then take a credit for taxes paid to Germany, etc. (the Foreign Tax Credit). And if you're a German resident, you take a credit on your German tax return for taxes paid to the United States. So with a few exceptions, there's no double taxation. This has been the law, well, forever. What's changed is that the regulations requiring withholding are tightening so fewer people are able to avoid paying US income taxes.
@@richardbryanesq you have to be joking right, multi-million dollar companies pay little tax by claiming it was offshore. If the earning is in that country then taxed in that country. You don't pay tax to multiple countries. The advertisements are set and placed by the internet provider, you are not an employee, the monies you earn are sent to you in your country, you didn't spend it in any other country for it to attract taxes in that country. It is double dipping, RUclips pay tax and the creater pays tax. I don't blame RUclips, but this is a USA government money grab!
Please have someone come on and talk about the tax situation with US youtubers. i just started making money from youtube 4 months ago and i want to start learning about this taxes things. I shoot in my home so I think i could write off alot of stuff. plus i do food, and i remember a food youtuber saying he saves all his grocery receipts and uses them for tax write offs.
There is a way to avoid paying taxes, or carrying car insurance (and still drive down the road legally) And death isn’t what it used to be - especially with cryo-freezing, death is supposed to be permanent… Not anymore.
You have people who don't look at channels like this. All they do is upload and get off that's it. They need some kind of pop-up for these announcements.
It's an important distinction that the 24% is a withholding by Google... not a tax... like you would similarly see on your regular work paycheck. The taxation occurs (as any other income/business tax), IF ANY, and you can file for a refund for the non-taxed amount. In most cases, you guys will be able to get most of it back, minus whatever you're regular income tax doesn't absorb at your bracket. Google chose the amount as the safest to be compliant. "Doomsday" is a bit of a click-baity exaggeration. If you're pissed about the deadlines... 🤷♂️ welcome to working for yourself and running a business.
Oh so... If I get injuries from making a vid, I get workers comp? What about unemployment if yt bans my acct? Can I file for for EOE violations if yt doesn't push my channel as much as YOUNGER WHITE MALES? Wait... If I'm "working for myself" then I'M RESPONSIBLE for my tax burden just like a housekeeper, landscaper, etc... Sounds like the govt is getting greedy & coercing Google to be an accomplice. Google isn't my employer and shouldn't be responsible.
@@seaneric3517 It's a new territory, for sure. It certainly plays into the current gig economy debate. But as it stands, YT creators are not employees of Google. Google does not order you to make content, rather you use YT as a platform to get your content out. They're more of a consignment distribution service. You are not beholden to Google, Google does not own your content, and you are free to produce and distribute your videos elsewhere as you see fit. So any of the things you pointed out don't apply.
@@KingLouisII and therefore neither should the withholding apply either; hence the point of me asking those questions. The govt has required yt to serve as a tax collector for independent contractors. Taking out the withholding first prevents people the capital to use for legitimate expenses which can be written off as deductions. It's a government money grab by a third party to create a "barrier of entry" to lower class participants for the sole purpose of economic suppression of socioeconomic mobility.
@@seaneric3517 "Sounds like the govt is getting greedy" A government is "greedy" by definition. Greediness is the wrong definition though. Envy is the main cause for the government very existence. If you're capable you will be punished = taxation, government racketeering us on behalf of incapable welfare recipients voters. I don't wanna touch the special category namely the brainwashed middle class voters. One obviously get what one deserved.
I applied for monetization last week and got approved only a couple days later!! (which was WAY faster than expected) Thanks for this heads up, I for sure would not have known to update that info!!
Many years ago I hired my first CPA to do my taxes. I lived in one state and worked in another in the US, so it complicated things. When I picked up my work he showed me how much money I owed. I whined a little. I’ll never forget his response. “I wish I had to pay a half million in taxes every year” he said. I was stunned! Why? He said, “Because that would mean that I was actually MAKING a LOT of money.” We all get the things that government brings us, whether we like it or not. MOST of what they do makes life, at least in the US, a little better for us. You never get something for nothing, and you usually get nothing for nothing. With that all said, I HATE that I am in about a 30% tax bracket and the gazillionaires in the US pay a smaller percentage. Your advice regarding diversification is spot on. Also good points about RUclips fees (don’t call them taxes cause the crazies think the goobermint is getting in their pockets). RUclips, like government, offers a platform for building a good life. You play you pay.
I can’t believe RUclips is taking that much from content creators. Straight robbery! I say the top Creators come together and build platform similar to this one. Right now RUclips is a powerhouse and ultimately control everything. Things need to change. Thank you for bring awareness, Sean. Makes me seriously want to reconsider using the platform.
@@ThinkMediaTV Dear Team Sean, Now here's where it gets interesting. I submitted my W-8BEN form as soon as I got the news in March 2021. (Approved) THIS IS SOMETHING ELSE.
You said it correctly. 2 things we are certain of my friend, One is Death and second is Taxes. Now that is well said my brother. this is what we call hard truth or the Real Truth Billions of people do not want to hear. now this made my Day
I don't know who, but someone actually needs to hear this , you've got to stop saving all your money. Venture into investing some, if you really want financial stability
Great video! Not there yet and not having an ad sense account, but good for heads up! I decide 2 weeks ago to start my RUclips channel and your videos kept coming up for me to watch. I don't know why it happened, but I am grateful for it! Keep up the good work, Sean and Co.!
I am so glad I came across this (how did I miss it 4 months ago?) because the biggest fear I have of going all in and treating my channel as a business instead of a hobby is worrying about how to do the tax thing.
Canadian too. I have 2 channels and updated my tax info on both. But after submitting it the first time, I saw a new notification asking me to update the tax info which I did. There was an optional line and I left it empty. So, I am now confused if I end up paying that stupid 24% tax. Any idea how to check it?
I’m uk 🇬🇧 and completed this during the month. Channel just been monetised 🙌 first payment received but don’t know where to look to see how much tax was deducted? 76% of my audience is US! Don’t want to get double taxed US & UK!
As a UK RUclipsr I found very little guidance or information about how to fill in this tax form. I don't understand our own UK tax forms let alone those from the US! I managed to so it eventually - fingers crossed I did it correctly 🤞🏼
Have not met anyone else who has read Rich Dad Poor Dad and Cash flow Quadrant, etc. Totally changed my financial thinking. Thanks for the heads up on taxes! God bless!
Not a fun subject Sean but those of us in the know salute you for taking the onus to share such a crucial piece of information. I had not been paying attention to my Adsense as I should and this was a blessing to be reminded. Thank you 🙏
US Citizens get taxed on income anywhere in the world, to a certain extent, so moving to another country doesn't completely eliminate your US tax burden. There is a certain amount allowed for earned income abroad, but the IRS still wants their cut, especially from US companies, but ALL income is taxable for US Citizens no matter where you live in the world.
Thanks Sean, excellent and really useful video. I'm going to check how this applies to Thinkific too. Similar situation on withheld taxes as here in UK (we call it PAYE or Pay As You Earn)... for employed people it makes life easier... no perfect system I guess!
I wish Google would deduct withholding tax from my payments so I am not forced to pay estimated tax payments. There is NO tax withholding rate in my adsense as stated at 5:36 in the video.
Love to see a episode with a cpa would provide so much value for me and how I see youtube and my business model at my shop significantly. Also "rich dad poor dad" is am amazing book
I got a long way to go before making money off RUclips but appreciate this channel a lot. Found it last month. Especially when you don’t know a lot about technology.
I'm so glad you are sharing this information in a more consumable way. I'm not part of the YPP yet, but probably will be in a year or so. I'm based out of Canada so definitely the W8-BEN-E will be one of the first things I do once we get launched and monetized.
Great Video. Thanks for the Heads up. I went and checked & I had already put in all my info. Never hurts to double check.. especially at a 24% default hit on taxes. ❤️🤘
Thanks Sean, I agree I think we really need to start looking at our channels as a business and learn the loopholes. Damn tax though man! Here in NZ they have just announced that from 2022 we will be charged 3k tax on the purchase of second hand petrol vehicles and 6k on brand new ones.... Not great if you are an automotive vlogger like myself.
This information is important because if you happen to live outside the US and your tax rate is less than 24% then technically you are being over taxed and this means they are taking more than they should as a default.
Okay so I’m a few hours away from being monetized and I am looking forward to becoming more financially literate and independent, going to look into organize all these things
Saying that this channel's videos provide with value would be an extreme understatement. Even while I discovered it recently, maybe this is my third or 4th video. I don't have a monetized channel (might make one at some point, but for now it's mostly about personal curiosity/learning ), but from having worked quite at companies heavily related to online products and IT, yep, this is has been for a while a "must" in many other platforms. I remember having to research about this for Turbosquid, for the company I worked at (outside US, and the treaty % was not great. The idea was them to send 3D models to TS, but we finally did not go for it), and this was many, many years ago. What I am wondering is... Why now? I was surprised this hadn't been applied already. But to be fair, many platforms do not yet apply this. There are probably legals details about why some do so, and some don't, and why YT enforces it now.
Lol. So true! If there was no tax on our labor, maybe we could afford to pay for college and healthcare! There's like 200 plus different kinds of taxes! Let's just end one of those taxes...the income tax!
Well, they're supposed to be a good idea because the reads we take and all that stuff is paid by taxes, so we'd end up doing something similar either way
@@TheEtherny Income taxes don't pay for roads, or schools, or emergency services. Those are all paid for by other taxes. The income tax pays for the interest rate that we pay to the Federal Reserve for the money Congress borrows from them. But Congress actually was given the power to manage the money themselves, they just passed it off to the private bankers (in the form of the Federal Reserve). If Congress took back it's responsibility, we wouldn't need to pay any interest on the money, because we wouldn't be borrowing it from private bankers.
For US residents, all the earnings have always been taxable. Regardless of what RUclips does, you’ll end up paying the same amount by tax day either way. It’s just a matter of how much is withheld vs paid later.
Hi, i am from india.. google take withholding my amount around $80 due to not filling tax info.. now i did.. can i get refund of that money that is withholding.. is there any possibility
Tax tip from a tax professional. The more different sources of revenue you have (multiple business revenues, real estate, stocks, w2, etc.) the more tax planning you can usually take advantage of. Hire a tax professional. They can often keep more money in your pocket than how much they charge. If you pick the right one. Ensure they are a CPA, EA, or attorney. There are others but these are usually the best go to. Next look them up in the IRS or your state system to verify what they tell you about themselves. Lastly, don't just go start an Scorp because every one talks about. Know the pros and cons of these entities because one thing people don't know is Scorps are required to have annual payroll for the owner which often time is an added expense. On top of that you now need to pay a tax professional to file a new annual separate business tax return which can be from 400 to thousands each year.
I'm in Canada, still a tiny channel, but have been getting ad revenue for a few months now. Our taxes for 2020 have not been submitted yet. I also cannot login to my Adsense account as it keeps saying there is an error and they have been notified, but it's been like that for weeks! How can they expect you to 'do' anything when it is broken!?
That is super frustrating... because they prob won't give you grace on the deadline. But... keep in mind if they without the 24%... you may be eligible to get it as a refund later.
Sean, as someone in the US who’s an LLC and pays quarterly/yearly taxes on my YT earnings already, I’m a little confused on how this will work. Once they see someone has an EIN, surely they won’t be taxed the 24% on top of the taxes they already pay, right? That would be double taxing (like 50+%). Is it an either/or situation once they see your EIN number? Thank you.
I don't know what is wrong with my RUclips channel I just got this morning and I can see that I don't have any subscribers I have like 50 something subscribers but this morning I see that I don't have subscribers what does that mean please help me for that I need your help
This would only apply as a sole prop, not an LLC. You will pay taxes after your expenses. I am in the same situation and made sure the money flows to my LLC.
If you are a US citizen living/working/overseas (or in the US) be sure to submit a W9...not a W8. It will relieve you from the withholding requirement. W8' are for non-US citizens.
It seems to me that in the US, if we provide EIN or Tax ID number, we don't have to worry about it, they 1099 you, and you pay taxes on your tax bracket. I buy a lot of section 179 non listed property, and the US exempts citizens that are self employed from taxation to help stimulate the economy by making huge purchases with section 179 capital equipment. I am in California, and I buy heavy equipment, business trucks, which are expensive, and it keeps workers employed, so Congress gives me a tax free advantage. Or, I could not do this, have more cash in the bank, but pay a lot of taxes. I choose to support major employers, while employed people support government bureaucracy. The IRS is not your enemy. They have made taxation fair, and if you are overpaying taxes, your accountant needs to be fired. You need to study something like Turbo Tax, and do them along with your accountant when you first go into business, and then you'll see if you accountant is leaving out what they call "red flags." If you are audited, they have to answer to the IRS why they deducted or failed to deduct, so if they don't allow so-called "red flag" deductions, they will not have to do extra work, which costs you so much money in deductions. I learned this early in the 80s when Turbo Tax came out. I actually made an excel spread sheet modeled from a schedule C before turbo tax. My accountant at the time hadn't filed certain paperwork, making her calcs about $2000 more than mine. I fired her on the spot when I showed her my docs, and they had more forms. She state, "well I would have had to charge you more." It was the red flag stuff, yet if you are entitled to them deduct them. Another thing, is to report your cash income always. It may be tempting to hide it, but paying taxes on it shows the IRS that you are Honest, and I bet they marvel when people do this. I'm 63, and I've only been lettered audited once. Dot your i's and cross your t's and you'll be fine. USA taxes aren't that bad, but if you pay too much that's immaturity on your part.
Did this the other day. Creator in the UK so had to submit a W8-BEN-E form but first had to get a US TIN by completing another couple of forms too. Quite complicated so I would HIGHLY recommend getting a professional to help you with this. I used Caseron Cloud Accounting (actually based near me too). They were super helpful and knowledgable. Also, wasn’t the quickest thing to do so you really should have done this already I’m afraid.
I'm in UK and I provided the tax info. Just checked and Adsense withheld 7.14% of my earnings from July as "US Chapter 3 tax withholding" - Contacted HMRC about this double taxation. Waiting on an expert to call me back.
I've been a RUclips partner for around 8 years and on RUclips since 2006. An actual partner, not a regular monetized partner which came much later as an option for everyone, I became a partner only days before they scrapped the actual program. I've been earning bits here and there and suddenly they want more info when they have EVERYTHING they need but it keeps getting rejected or is constantly "In review". Very frustrating.
Just wanna ask a Question, will this 24% be deduced from our payment if we sign up to AdSense in the near future , I have a small channel and i am not yet monetized so if I get monetized will my payment be 24% off or will I get my actual money if I update the tax when I sign in. Kindly let me Know Sean. Thanks a lot.
My Channel was created last year but monetized this year. Google Adsense required me to fill out the W9 form (I think they had it available to fill out on their site) to be monetized. I did it under my SS# , it was very easy. I will hand it to my cpa with everything else I do at the end of the year, easy peasy!
Good someone is talking about all this! Would like to see someone with a good following size like Think Media, talk about more how the channels are doing what they are doing manly with write-offs/deductions. Have a CPA on and few really big RUclipsrs like car ones and if possible MrBeast. Hope they explain how they are dealing with write-offs/deductions of cars and giving away things any props. So many CPAs and or accountants don't even know can make money on youtube and don't understand how a lot of the car channels or MrBeast are doing their write-offs/deductions. Kind of crazy to me how they don't know or think it's a gray area. Kind falls into the area of celebrities, music artists, and how movies are made. Like look how say raper has chains or watch on and they do a write-offs or deductions of them, IRS would say they can't use them when they are doing everyday things so gray area comes up of how they have to keep up with that image all the time. But IRS doest see it that way from I'm told by many. Could be wrong tho, that's why having this talked about will be a good thing.
Financial education for small businesses is so important! Thanks for raising these points and would be great to see more of these “financial education related to RUclips” videos. Thanks Sean! 🙌
Seems like all the money i spend on my studio equipment is a waste because im not earning that much. And if they take 24% of that its ridiculous and pissed me off government is not providing anything to take tex from our youtube revenue.
I’m in Australia and filled in my tax declaration and received email confirming that my country had a tax treaty and my withholding amount will be nil! But this payment for July, I have had the full 24% taken from my payment, tried contacting Google and RUclips and they are just saying contact USA tax department…..wtf I’m in Australia have emails to prove my contribution to USA tax department should be nil, please help any advise
@@SprayJones oh wow, no explanation no breakdown of what’s what and what for 🤷♀️ crazy, I thought they could only take tax from money earned in USA but they have take from my whole amount of monthly earnings as my USA audience is only 40%
@@gillykubeart I was taxed for the first time since completing the form in March. We have a tax treaty yet all of a sudden 24% came off my newest payment. Trying to get to the bottom of this.
@@gillykubeart This is in direct contradiction to what their tax form says. For April, May & June we have had no deductions, and now all of a sudden this. So I am waiting to see if someone has an answer as to why other than money laundering...
I live in US and do I need to submit new form? I don't understand this - will it affect me since I earn money. Do I need to do anything or it only affects people who are out of the United States? Btw my United States tax info status is [ Approved ].
You rock! I always learn from your content and I subscribed while watching the first video I discovered of yours. I just had a feeling and it was true. Thank you for your services 🙏🏽 I’m not yet monetized but the information is still relevant and valuable.
Whats the uproar about? i work for Airbnb and this is a normal practice. There is usually a threshold. For our company the IRS determines any person that makes over $20,000 USD and has had more than 200 reservations on Airbnb will get their earnings reported. It looks like RUclips might not have a threshold that needs to be met before u ping ion the IRS radar.. BUT the point is... u need to add your taxpayer information so the IRS knows who/how to tax your earnings. If you don't add then they choose a default of 24%. For NON - US residents, we also deal with 30%, and YES they IRS will withhold from all payouts until you add TPI (Tax payer information). I literally deal with this all day. Bottom line. Consult a tax advisor, or hmu.. ;) Im in Nevada too! North Las Vegas!!
If you argument is RUclips is our employer, then RUclips can not act as a service provider and we are not running our own business, then as an employee RUclips needs to act in a different manner. This is not actually true, and even if it is, So is RUclips our employer all over the world....... NO! So they should not be with holding tax.
Log into your AdSense account and make sure everything is updated. That should mainly affect the taxes you owe based on the unique details of your state.
I don't even know if South Africa has a tax treaty with America or not, but I'll cross that bridge when I get to it. I always knew there's that element of tax one would need to consider upon monetization. It's never too early to learn
So glad I'm subbed dude! 😅 I currently have a couple LLCs -1 in a sensible state( not my own) but ive been thinking of pulling a plug on being a content creator . I love and appreciate you! 🙏
Questions of the Day ⚡ Where do you live in the world? Is your channel monetized? Let me know! 👇 ************ NEW VIDEO 💣 How to Make $500 a Week with a Small RUclips Channel (Without RUclips AdSense) 👉👉 WATCH HERE 👉👉 ruclips.net/video/q6kNPOwj97s/видео.html
I leave in Akwa Ibom Nigeria...my channel is still growing
I'm from Jamaica but I already full out the tax form W-8BEN and its saying Approved but I receive the same email yesterday from RUclips saying that I need to submit my tax!
It's saying status :Approved!?
Australia - and I’m not worried cause I’m only a ‘babyTuber’ and my goal for the next few years is to enjoy myself whilst levelling up creating better and better content - Cheers Sean!
Is it just me or does Sean look like he's crying having to say this ? He's having a tough time. No worries brother, most of us have submitted that tax info to not get hurt on that tax 😀
This is the biggest scam by the USA government, why should people outside the US pay tax to the US? We need to pay tax to our own government as earnings in our own country. The US government should not be using vendors to collect tax, especially outside the US. Imagine if they did this with every product, it would be a international nightmare, you need to pay tax to every country you may sell a product in! Crazy! Thanks Mr B!don
If someone earns money by doing business in the US they must pay US income taxes. Every country as far as I know operates this way: if you're a US citizen and resident, and make money from your business in Germany, or Mexico, or in the UK, for example, you have to pay income tax to Germany, or to Mexico, or to the UK, on the income you earned by doing business in those countries. And as a US citizen and resident, you report that foreign earned income, along with US income, on your Form 1040, and then take a credit for taxes paid to Germany, etc. (the Foreign Tax Credit). And if you're a German resident, you take a credit on your German tax return for taxes paid to the United States. So with a few exceptions, there's no double taxation. This has been the law, well, forever. What's changed is that the regulations requiring withholding are tightening so fewer people are able to avoid paying US income taxes.
@@richardbryanesq you have to be joking right, multi-million dollar companies pay little tax by claiming it was offshore. If the earning is in that country then taxed in that country. You don't pay tax to multiple countries.
The advertisements are set and placed by the internet provider, you are not an employee, the monies you earn are sent to you in your country, you didn't spend it in any other country for it to attract taxes in that country. It is double dipping, RUclips pay tax and the creater pays tax. I don't blame RUclips, but this is a USA government money grab!
Americans wanted independence from Britain because they hated taxation without representation and now they are the ones doing it. They are hypocrites.
@@DoctorDeath147 Americans fought and some died for that Independence are you willing to give your life to stop the Americans?
Lmao, the sad part about your comment is you think that it's B!dens fault. This was happening even when your cult leader Trump was Pres.
Please have someone come on and talk about the tax situation with US youtubers. i just started making money from youtube 4 months ago and i want to start learning about this taxes things. I shoot in my home so I think i could write off alot of stuff. plus i do food, and i remember a food youtuber saying he saves all his grocery receipts and uses them for tax write offs.
"Two things are certain, death and taxes." Facts
💀 & 💰
Yeah… You gotta love the adult life🤦🏾♂️😂‼️
There is a way to avoid paying taxes, or carrying car insurance (and still drive down the road legally)
And death isn’t what it used to be - especially with cryo-freezing, death is supposed to be permanent… Not anymore.
@@FynnOliverEmonSill good stuff I respect u for telling them the truth
You have people who don't look at channels like this. All they do is upload and get off that's it. They need some kind of pop-up for these announcements.
It's an important distinction that the 24% is a withholding by Google... not a tax... like you would similarly see on your regular work paycheck. The taxation occurs (as any other income/business tax), IF ANY, and you can file for a refund for the non-taxed amount. In most cases, you guys will be able to get most of it back, minus whatever you're regular income tax doesn't absorb at your bracket. Google chose the amount as the safest to be compliant. "Doomsday" is a bit of a click-baity exaggeration. If you're pissed about the deadlines... 🤷♂️ welcome to working for yourself and running a business.
Yes. Thanks for breaking down the distinction.
👊💯
Oh so... If I get injuries from making a vid, I get workers comp? What about unemployment if yt bans my acct?
Can I file for for EOE violations if yt doesn't push my channel as much as YOUNGER WHITE MALES?
Wait... If I'm "working for myself" then I'M RESPONSIBLE for my tax burden just like a housekeeper, landscaper, etc...
Sounds like the govt is getting greedy & coercing Google to be an accomplice.
Google isn't my employer and shouldn't be responsible.
@@seaneric3517 It's a new territory, for sure. It certainly plays into the current gig economy debate. But as it stands, YT creators are not employees of Google. Google does not order you to make content, rather you use YT as a platform to get your content out. They're more of a consignment distribution service. You are not beholden to Google, Google does not own your content, and you are free to produce and distribute your videos elsewhere as you see fit. So any of the things you pointed out don't apply.
@@KingLouisII and therefore neither should the withholding apply either; hence the point of me asking those questions.
The govt has required yt to serve as a tax collector for independent contractors.
Taking out the withholding first prevents people the capital to use for legitimate expenses which can be written off as deductions.
It's a government money grab by a third party to create a "barrier of entry" to lower class participants for the sole purpose of economic suppression of socioeconomic mobility.
@@seaneric3517
"Sounds like the govt is getting greedy"
A government is "greedy" by definition. Greediness is the wrong definition though.
Envy is the main cause for the government very existence.
If you're capable you will be punished = taxation,
government racketeering us on behalf of incapable welfare recipients voters.
I don't wanna touch the special category namely the brainwashed middle class voters.
One obviously get what one deserved.
I applied for monetization last week and got approved only a couple days later!! (which was WAY faster than expected)
Thanks for this heads up, I for sure would not have known to update that info!!
👊💯
Ditto! Congratulations! 👏🏻👏🏻
Congratulations!
Many years ago I hired my first CPA to do my taxes. I lived in one state and worked in another in the US, so it complicated things. When I picked up my work he showed me how much money I owed. I whined a little. I’ll never forget his response. “I wish I had to pay a half million in taxes every year” he said. I was stunned! Why? He said, “Because that would mean that I was actually MAKING a LOT of money.”
We all get the things that government brings us, whether we like it or not. MOST of what they do makes life, at least in the US, a little better for us. You never get something for nothing, and you usually get nothing for nothing.
With that all said, I HATE that I am in about a 30% tax bracket and the gazillionaires in the US pay a smaller percentage.
Your advice regarding diversification is spot on. Also good points about RUclips fees (don’t call them taxes cause the crazies think the goobermint is getting in their pockets). RUclips, like government, offers a platform for building a good life. You play you pay.
Good points of view!
Maybe get a "home-based" business for a ton of tax write-offs. Check out Dr. Lynn Richardson's channel. Great information.
@@NoemiLeNetteArts better still...”home based RETIRED”! 😁
I can’t believe RUclips is taking that much from content creators. Straight robbery! I say the top Creators come together and build platform similar to this one. Right now RUclips is a powerhouse and ultimately control everything. Things need to change. Thank you for bring awareness, Sean. Makes me seriously want to reconsider using the platform.
They’re doing this to comply with US law. RUclips makes no money off of this.
@@fascinatedbyeverything how dare us government do this
I'm from a country where my bank already deducts 30% every month. It is so unfair because of having an intermediary bank.
Dang. You should be able to avoid this 24% withholding if you get your tax forms summited 💯
@@ThinkMediaTV Dear Team Sean, Now here's where it gets interesting. I submitted my W-8BEN form as soon as I got the news in March 2021. (Approved)
THIS IS SOMETHING ELSE.
ruclips.net/video/MYtb60WXuwY/видео.html
You said it correctly. 2 things we are certain of my friend, One is Death and second is Taxes. Now that is well said my brother. this is what we call hard truth or the Real Truth Billions of people do not want to hear. now this made my Day
Welcome to the world of being self employed lol Definitely recommend hiring a CPA
Oh hey, Danielle 💁🏻♀️👏🏻
Agree 💯
@@beautygirlsguide hey girl hey!!! Finally gonna get started in the YT relm this year 😉
@@ThinkMediaTV great info as always!
@@DanielleNicoleMakeup oh YES!! I love to hear that!! Can’t wait to see 🥰❤️
The US might be the land of opportunities, but every red cents you earned the uncle Sam wants about 50% of that....
Try Canada or Europe then, you’ll be given about 50% to the government
I don't know who, but someone actually needs to hear this , you've got to stop saving all your money. Venture into investing some, if you really want financial stability
@Francisco Angel
Stocks are good crypto is better
@Felicity Moon I heard that his strategies are really good
@Felicity Moon He has really made a good name for himself
@Felicity Moon I got sir Adam Douglas info, how good is he
@Felicity Moon He's Really amazing with an amazing skills he changed my 0.3btc to 2.1btc
Great video! Not there yet and not having an ad sense account, but good for heads up!
I decide 2 weeks ago to start my RUclips channel and your videos kept coming up for me to watch. I don't know why it happened, but I am grateful for it!
Keep up the good work, Sean and Co.!
I am so glad I came across this (how did I miss it 4 months ago?) because the biggest fear I have of going all in and treating my channel as a business instead of a hobby is worrying about how to do the tax thing.
I'm Canadian, thankfully I'm paying 0% for 2 of the 3 forms and 10% tax on the other one.
Thanks for the details 🙏🏻
As a Canadian, what did you have to provide?
Fellow Canadian here! Great video idea for you...I'd watch.
Canadian too. I have 2 channels and updated my tax info on both. But after submitting it the first time, I saw a new notification asking me to update the tax info which I did. There was an optional line and I left it empty. So, I am now confused if I end up paying that stupid 24% tax. Any idea how to check it?
Normal Canadian prices on everything are higher than the USA
I’m uk 🇬🇧 and completed this during the month. Channel just been monetised 🙌 first payment received but don’t know where to look to see how much tax was deducted? 76% of my audience is US! Don’t want to get double taxed US & UK!
What the hell?! This isn’t fair for creators outside the US.😟
Joe Biden is greedy
@@icyblondeleh1700 The US is greedy in general. It's literally bootlicker central, politicians kiss corporate ass for a living there.
Thanks Sean. Not there yet, but I appreciate the heads up.
ruclips.net/video/MYtb60WXuwY/видео.html
Same here. I am not there yet, but soon I will be and you too✊🏾‼️
Thanks , So if we don’t earn yet, and in the future start earning, the deadline wouldn’t have an impact on our channel,?
As a UK RUclipsr I found very little guidance or information about how to fill in this tax form. I don't understand our own UK tax forms let alone those from the US! I managed to so it eventually - fingers crossed I did it correctly 🤞🏼
Have not met anyone else who has read Rich Dad Poor Dad and Cash flow Quadrant, etc. Totally changed my financial thinking.
Thanks for the heads up on taxes! God bless!
YES!!! 100% a gamechanger.
Everyone should read those. 🔥
I read it 20 years ago
Not a fun subject Sean but those of us in the know salute you for taking the onus to share such a crucial piece of information. I had not been paying attention to my Adsense as I should and this was a blessing to be reminded. Thank you 🙏
🙏🏻🙏🏻🙏🏻
Big thanks from this creator in the Netherlands!!! Even my accountant couldn't figure this out.
US Citizens get taxed on income anywhere in the world, to a certain extent, so moving to another country doesn't completely eliminate your US tax burden. There is a certain amount allowed for earned income abroad, but the IRS still wants their cut, especially from US companies, but ALL income is taxable for US Citizens no matter where you live in the world.
Unless you denounce your citizenship.
I cannot access this United States Tax form. Google Ad Sense is telling me to “re-authenticate” but don’t know how.
Very informative, thank you for sharing, Think Media.
Hy , Shan how are you my friend, I have a question I’m from Saudi Arabia 🇸🇦 how much tax I have to pay ?
Thanks for the tip!
Looks like I had already submitted mine back in late 2019.
Thanks Sean, excellent and really useful video. I'm going to check how this applies to Thinkific too. Similar situation on withheld taxes as here in UK (we call it PAYE or Pay As You Earn)... for employed people it makes life easier... no perfect system I guess!
I wish Google would deduct withholding tax from my payments so I am not forced to pay estimated tax payments. There is NO tax withholding rate in my adsense as stated at 5:36 in the video.
Love to see a episode with a cpa would provide so much value for me and how I see youtube and my business model at my shop significantly. Also "rich dad poor dad" is am amazing book
I got a long way to go before making money off RUclips but appreciate this channel a lot. Found it last month. Especially when you don’t know a lot about technology.
I'm so glad you are sharing this information in a more consumable way. I'm not part of the YPP yet, but probably will be in a year or so. I'm based out of Canada so definitely the W8-BEN-E will be one of the first things I do once we get launched and monetized.
This is the kind of info I wanna get if i want to continue legitly with RUclips as one of my money/financial source
Thanks Mate
Great Video. Thanks for the Heads up. I went and checked & I had already put in all my info. Never hurts to double check.. especially at a 24% default hit on taxes. ❤️🤘
Does this also apply to my new channels that I have just created and have no views or viewing yet ?
I thought you had to verify your tax info before you received your first payment.
Great video as always!
Switzerland’s tax treaty with the US sucks... my US friends that have been here over 10 years and never go back still pay US tax every year... wtf?!!
Wow
Thanks Sean, I agree I think we really need to start looking at our channels as a business and learn the loopholes. Damn tax though man! Here in NZ they have just announced that from 2022 we will be charged 3k tax on the purchase of second hand petrol vehicles and 6k on brand new ones.... Not great if you are an automotive vlogger like myself.
Those theives just don't want people to succeed in life. Because they're seeing youtubers are getting wealthy rather than having a 9-5 job.
So true
If in my account under "manage tax info" and it says "approved" with W-9 form are we good to go? Or do we need to send in a new form?
You should be good to go. I assume you are here in the US?
@@ThinkMediaTV yes. Utah. Thanks for making us aware of this! Your information is very helpful!
@@JanHowell Hey Jan! We have "Verified." Is that what you have? We submitted our W9 on 12/2020; should we be good to go as well? Thanks in advance
@@ThinkMediaTV If you guys can also verify my question to Jan in this thread, that would be AMAZING
My RUclips channel is not monetized what we should do?
I’m in Nigeria and so scared of getting monetized now lol. Nigeria doesn’t have a tax treaty with the US.😡
Hello from Canada! 🇨🇦 Thanks for creating this video. Peace and Blessings for all that you and the TM team do and create.🙏🏻✝️💫
OUTSIDE of the US. Okay 💆♂️
This information is important because if you happen to live outside the US and your tax rate is less than 24% then technically you are being over taxed and this means they are taking more than they should as a default.
only if your resident country has atax treaty with the US with the aim of avoiding double taxation - many developed countries do.
Am in jamaica the money that we are withdrawing from us is really high
You said they take 24% than you said do this or your money is being withheld. So which one is it?
Thanks It’s the responsible mind set to keep up with tax form matters.
Okay so I’m a few hours away from being monetized and I am looking forward to becoming more financially literate and independent, going to look into organize all these things
ruclips.net/video/MYtb60WXuwY/видео.html
Save all of your receipts and see what can be used as an itemized deduction.
I dont get it youtube take 45% and then United state takes 30% ?? so is it a total of 75% tax ? wtf.
Saying that this channel's videos provide with value would be an extreme understatement. Even while I discovered it recently, maybe this is my third or 4th video. I don't have a monetized channel (might make one at some point, but for now it's mostly about personal curiosity/learning ), but from having worked quite at companies heavily related to online products and IT, yep, this is has been for a while a "must" in many other platforms. I remember having to research about this for Turbosquid, for the company I worked at (outside US, and the treaty % was not great. The idea was them to send 3D models to TS, but we finally did not go for it), and this was many, many years ago. What I am wondering is... Why now? I was surprised this hadn't been applied already. But to be fair, many platforms do not yet apply this. There are probably legals details about why some do so, and some don't, and why YT enforces it now.
I like how we literally had millions of years to figure our shit out and yet we still have bullshit like taxes
Lol. So true! If there was no tax on our labor, maybe we could afford to pay for college and healthcare!
There's like 200 plus different kinds of taxes! Let's just end one of those taxes...the income tax!
Well, they're supposed to be a good idea because the reads we take and all that stuff is paid by taxes, so we'd end up doing something similar either way
ruclips.net/channel/UC1ZJIQILeKSwM0Ma7ScNpDQ
@@TheEtherny Income taxes don't pay for roads, or schools, or emergency services. Those are all paid for by other taxes. The income tax pays for the interest rate that we pay to the Federal Reserve for the money Congress borrows from them.
But Congress actually was given the power to manage the money themselves, they just passed it off to the private bankers (in the form of the Federal Reserve). If Congress took back it's responsibility, we wouldn't need to pay any interest on the money, because we wouldn't be borrowing it from private bankers.
@@factitiously that's what I was talking about! I don't understand shit from what u just told
For US residents, all the earnings have always been taxable. Regardless of what RUclips does, you’ll end up paying the same amount by tax day either way. It’s just a matter of how much is withheld vs paid later.
Hi, i am from india.. google take withholding my amount around $80 due to not filling tax info.. now i did.. can i get refund of that money that is withholding.. is there any possibility
So if your not earning yet can you fill this info in when you begin to make money xx
Tax tip from a tax professional. The more different sources of revenue you have (multiple business revenues, real estate, stocks, w2, etc.) the more tax planning you can usually take advantage of. Hire a tax professional. They can often keep more money in your pocket than how much they charge. If you pick the right one. Ensure they are a CPA, EA, or attorney. There are others but these are usually the best go to. Next look them up in the IRS or your state system to verify what they tell you about themselves. Lastly, don't just go start an Scorp because every one talks about. Know the pros and cons of these entities because one thing people don't know is Scorps are required to have annual payroll for the owner which often time is an added expense. On top of that you now need to pay a tax professional to file a new annual separate business tax return which can be from 400 to thousands each year.
I'm in Canada, still a tiny channel, but have been getting ad revenue for a few months now. Our taxes for 2020 have not been submitted yet. I also cannot login to my Adsense account as it keeps saying there is an error and they have been notified, but it's been like that for weeks! How can they expect you to 'do' anything when it is broken!?
That is super frustrating... because they prob won't give you grace on the deadline.
But... keep in mind if they without the 24%... you may be eligible to get it as a refund later.
ruclips.net/video/MYtb60WXuwY/видео.html
Sean, as someone in the US who’s an LLC and pays quarterly/yearly taxes on my YT earnings already, I’m a little confused on how this will work. Once they see someone has an EIN, surely they won’t be taxed the 24% on top of the taxes they already pay, right? That would be double taxing (like 50+%). Is it an either/or situation once they see your EIN number? Thank you.
Interesting!! Not sure ... if they do we can claim it at tax time... just not fun to have it withheld for that long 🤷🏻♀️
I don't know what is wrong with my RUclips channel I just got this morning and I can see that I don't have any subscribers I have like 50 something subscribers but this morning I see that I don't have subscribers what does that mean please help me for that I need your help
Let's get each other up and make a youtube gc
Sh
This would only apply as a sole prop, not an LLC. You will pay taxes after your expenses. I am in the same situation and made sure the money flows to my LLC.
What will I do to have subscribers
Who else is glad they don’t have to deal with this yet 🙃 (
Same 🙋🏽♂️
same 😉
same😂
I'd rather pay taxes like anyone making money should than not make money at all.
also
Same. Is there a
If you are a US citizen living/working/overseas (or in the US) be sure to submit a W9...not a W8. It will relieve you from the withholding requirement. W8' are for non-US citizens.
It seems to me that in the US, if we provide EIN or Tax ID number, we don't have to worry about it, they 1099 you, and you pay taxes on your tax bracket. I buy a lot of section 179 non listed property, and the US exempts citizens that are self employed from taxation to help stimulate the economy by making huge purchases with section 179 capital equipment. I am in California, and I buy heavy equipment, business trucks, which are expensive, and it keeps workers employed, so Congress gives me a tax free advantage. Or, I could not do this, have more cash in the bank, but pay a lot of taxes. I choose to support major employers, while employed people support government bureaucracy. The IRS is not your enemy. They have made taxation fair, and if you are overpaying taxes, your accountant needs to be fired. You need to study something like Turbo Tax, and do them along with your accountant when you first go into business, and then you'll see if you accountant is leaving out what they call "red flags." If you are audited, they have to answer to the IRS why they deducted or failed to deduct, so if they don't allow so-called "red flag" deductions, they will not have to do extra work, which costs you so much money in deductions. I learned this early in the 80s when Turbo Tax came out. I actually made an excel spread sheet modeled from a schedule C before turbo tax. My accountant at the time hadn't filed certain paperwork, making her calcs about $2000 more than mine. I fired her on the spot when I showed her my docs, and they had more forms. She state, "well I would have had to charge you more." It was the red flag stuff, yet if you are entitled to them deduct them. Another thing, is to report your cash income always. It may be tempting to hide it, but paying taxes on it shows the IRS that you are Honest, and I bet they marvel when people do this. I'm 63, and I've only been lettered audited once. Dot your i's and cross your t's and you'll be fine. USA taxes aren't that bad, but if you pay too much that's immaturity on your part.
All the way from the Solomon Islands_ this information is still very helpful...its all about the business sense in everything...thanks Sean!!
I just started my channel and I’m located in the USA. Can’t wait to get monetized 🙌🏾🙌🏾🙌🏾
Did this the other day. Creator in the UK so had to submit a W8-BEN-E form but first had to get a US TIN by completing another couple of forms too. Quite complicated so I would HIGHLY recommend getting a professional to help you with this. I used Caseron Cloud Accounting (actually based near me too). They were super helpful and knowledgable. Also, wasn’t the quickest thing to do so you really should have done this already I’m afraid.
Thanks for sharing and for these details Alex!
I'm in UK and I provided the tax info. Just checked and Adsense withheld 7.14% of my earnings from July as "US Chapter 3 tax withholding" - Contacted HMRC about this double taxation. Waiting on an expert to call me back.
Thanks Sean, very important info. I have updated the tax info in my Google Adsense... I'm a RUclipsr from Malaysia. Really appreciate it.
I've been a RUclips partner for around 8 years and on RUclips since 2006. An actual partner, not a regular monetized partner which came much later as an option for everyone, I became a partner only days before they scrapped the actual program. I've been earning bits here and there and suddenly they want more info when they have EVERYTHING they need but it keeps getting rejected or is constantly "In review". Very frustrating.
Always putting us in the the game! Thank you so much! I'm not even monetized, but this is valuable info for my vision
I want to ask:
Starting June 1, 2021, is the estimated income data displayed on our RUclips studio including tax deductions or not?
THIS is what I want to know.
And where can we see tax deduction, in RUclips estimated income or Adsense balance or where ?
Hi from California, we are loyal Think Media viewers, not yet monetized Lol but this is a great information, Thank you Sean !
Just wanna ask a Question, will this 24% be deduced from our payment if we sign up to AdSense in the near future , I have a small channel and i am not yet monetized so if I get monetized will my payment be 24% off or will I get my actual money if I update the tax when I sign in. Kindly let me Know Sean. Thanks a lot.
My Channel was created last year but monetized this year. Google Adsense required me to fill out the W9 form (I think they had it available to fill out on their site) to be monetized. I did it under my SS# , it was very easy. I will hand it to my cpa with everything else I do at the end of the year, easy peasy!
Good someone is talking about all this!
Would like to see someone with a good following size like Think Media, talk about more how the channels are doing what they are doing manly with write-offs/deductions.
Have a CPA on and few really big RUclipsrs like car ones and if possible MrBeast. Hope they explain how they are dealing with write-offs/deductions of cars and giving away things any props.
So many CPAs and or accountants don't even know can make money on youtube and don't understand how a lot of the car channels or MrBeast are doing their write-offs/deductions. Kind of crazy to me how they don't know or think it's a gray area. Kind falls into the area of celebrities, music artists, and how movies are made.
Like look how say raper has chains or watch on and they do a write-offs or deductions of them, IRS would say they can't use them when they are doing everyday things so gray area comes up of how they have to keep up with that image all the time. But IRS doest see it that way from I'm told by many. Could be wrong tho, that's why having this talked about will be a good thing.
Financial education for small businesses is so important! Thanks for raising these points and would be great to see more of these “financial education related to RUclips” videos. Thanks Sean! 🙌
Seems like all the money i spend on my studio equipment is a waste because im not earning that much. And if they take 24% of that its ridiculous and pissed me off government is not providing anything to take tex from our youtube revenue.
I’m in Australia and filled in my tax declaration and received email confirming that my country had a tax treaty and my withholding amount will be nil! But this payment for July, I have had the full 24% taken from my payment, tried contacting Google and RUclips and they are just saying contact USA tax department…..wtf I’m in Australia have emails to prove my contribution to USA tax department should be nil, please help any advise
I am going through the same thing from Canada. We are nil and no taking off the tax!
@@SprayJones oh wow, no explanation no breakdown of what’s what and what for 🤷♀️ crazy, I thought they could only take tax from money earned in USA but they have take from my whole amount of monthly earnings as my USA audience is only 40%
@@gillykubeart I was taxed for the first time since completing the form in March. We have a tax treaty yet all of a sudden 24% came off my newest payment.
Trying to get to the bottom of this.
@@SprayJones yes exactly what’s happening to me
@@gillykubeart This is in direct contradiction to what their tax form says. For April, May & June we have had no deductions, and now all of a sudden this. So I am waiting to see if someone has an answer as to why other than money laundering...
So this is only for channels which are monetized right
Gotta say I’m a fan of this directed content dude 🔥
Give me more tax info - noone talks about it
Thanks for the info bro. Totally missed this coming. Definitely checking to make sure it’s updated!
Navigating the world of RUclips and business...ahhh thank you for sharing this
Do we have to submit this forms monthly?
I live in US and do I need to submit new form? I don't understand this - will it affect me since I earn money. Do I need to do anything or it only affects people who are out of the United States? Btw my United States tax info status is [ Approved ].
You should be fine with the 'approved' status 🙏
@@ThinkMediaTV phew 😥I was so scared 😨 Thank you very much!☺️
I write from Italy and I am inside the YPP with this channel.
And I hope to have done in the best ways this thing..
My question is: so if adsense is withholding YT taxes, does that mean we do not have to claim YT income when we file our yearly federal income taxes?
Umm no...you claim it, and state what they withheld.
Appreciate the valuable information, just updated my tax form for my channel while watching the playback
You rock! I always learn from your content and I subscribed while watching the first video I discovered of yours. I just had a feeling and it was true. Thank you for your services 🙏🏽 I’m not yet monetized but the information is still relevant and valuable.
Whats the uproar about? i work for Airbnb and this is a normal practice. There is usually a threshold. For our company the IRS determines any person that makes over $20,000 USD and has had more than 200 reservations on Airbnb will get their earnings reported. It looks like RUclips might not have a threshold that needs to be met before u ping ion the IRS radar.. BUT the point is... u need to add your taxpayer information so the IRS knows who/how to tax your earnings. If you don't add then they choose a default of 24%. For NON - US residents, we also deal with 30%, and YES they IRS will withhold from all payouts until you add TPI (Tax payer information). I literally deal with this all day. Bottom line. Consult a tax advisor, or hmu.. ;) Im in Nevada too! North Las Vegas!!
Great insights. Let’s go Nevada!
Friend just shared this. Best video I've watched in months. Thanks a lot!!!
If you argument is RUclips is our employer, then RUclips can not act as a service provider and we are not running our own business, then as an employee RUclips needs to act in a different manner.
This is not actually true, and even if it is, So is RUclips our employer all over the world....... NO! So they should not be with holding tax.
Watching from Ghana, West Africa, Africa
What if we moved from one state to another? Do we need to re complete our Form W-9?
Log into your AdSense account and make sure everything is updated. That should mainly affect the taxes you owe based on the unique details of your state.
Yes, whenever you move (even in state) you should update your W-9 so they have your updated information/mailing address
@@CurlsofaCPA thank you! I did fix the physical address but totally forgot the W-9 form is a separate thing haha
@@DeannaMims6 you’re welcome! Moving can be stressful all but itself without having to worry about changing your address on everything lol
@@CurlsofaCPA so true!! The address changes on everything is the worst part about a move haha
IRS - Fuck taxing Google and Amazon... let's rob the RUclips creators
Does this apply exactly to Europe? I thought Google was payung taxes in the EU too.
If you’re outside of the US, you’re paying taxes TWICE 😒🙄
No
Hi! Planning to start my RUclips journey soon. Can you please explain how new RUclipsrs entering RUclips Partner Program after this deadline be taxed?
Thanks for doing this! I didn’t realise non-US citizens also had to do it! So easy to do though
What if you enter the ypp after that deadline?
I don't even know if South Africa has a tax treaty with America or not, but I'll cross that bridge when I get to it. I always knew there's that element of tax one would need to consider upon monetization. It's never too early to learn
So glad I'm subbed dude! 😅 I currently have a couple LLCs -1 in a sensible state( not my own) but ive been thinking of pulling a plug on being a content creator . I love and appreciate you! 🙏