[W-8BEN] How to Fill US Tax info in Google AdSense - YouTube AdSense Tax Update 2021 | The Tech Trackers

[W-8BEN] How to Fill US Tax info in Google AdSense - YouTube AdSense Tax Update 2021



How to submit US Tax Form Adsense

As per Google's March Update - Google asks all non-U.S. Creator to update their tax info in google AdSense account by filling U.S. Tax Form.

So, in this article, we will see What Is the US Tax Update? How will it affect your AdSense earnings? and how you can save your Tax by simply filling an online form.

So, Let get started.

1. What Is Youtube Adsense Tax Update?

This update is important for ALL monetizing creators outside of the U.S., as you may begin to have taxes deducted from your U.S. earnings later this year (2021).

As mentioned in this update, Under U.S. tax law, Google is required to withhold U.S. taxes from non-US creators. If you fill out the tax form in AdSense, we may be allowed to reduce the withholding rate based on tax treaties that the U.S. has with various countries.

In simple words - Google is required to begin deducting U.S. taxes as early as June 2021 from creators outside of the U.S. which may affect your earnings. Therefore, Google is asking us to submit relevant tax info in your AdSense by May 31, 2021, so Google can determine the correct amount of taxes to deduct if any apply. If your tax info isn’t provided by May 31, 2021, Google may be required to deduct up to 24% of your total worldwide YouTube earnings.

Reference - https://support.google.com/youtube/thread/101463270

2. How will this YouTube Tax Update affect your earning?

As per the update, google ask us to submit your tax information in google AdSense by 31st May 2021, so that Google can determine the correct tax amount to deduct. This tax amount will be calculated on your earnings received from U.S. Visitors only, Yes! you heard it right. Here you only have to pay taxes on views and earnings received by U.S. Visitors, which means if your channel didn't receive any views from the U.S. and you're earning from U.S. viewers is ZERO then you won't be charged for U.S.tax.

The rate of Tax is based, on Tax treaties of Your Country with the U.S. You can find your country in this document - https://www.irs.gov/businesses/international-businesses/united-states-income-tax-treaties-a-to-z

As I am from India, India has a treaty with the U.S. And as per the treaty, Google can only charge a maximum of 15% Tax from Indian Creators. 

Still, there is a term set by google he will charge tax reduced rate as per treaty only if we submit our US tax form before 31st May 2021 and if we failed to update our Tax details before that creator will be charged (Default rate) 24% as a Tax of your entire AdSense earning. (here, it doesn't matter if you received views from the US or not).

So till now, we have seen what exactly that youtube AdSense update contains and how it will be affecting your AdSense earning, so now we will see how we can save our tax by filling US tax info in your Google AdSense account.

3. How to Fill US Tax info in google Adsense?

So let's go to our AdSense account, where you will see the below notification from google asking you to manage your tax info.

Manage Tax Notification - The Tech Trackers

Here click on "Manage Tax Info" to start the process. Once you clicked on this, you will see below screen :

How to fill US Tax Info Step 1 - The Tech Trackers

Here, you have to click on "Add Tax Info", Once clicked, Google asks you to verify your password. Once confirmed, you will land on the below screen :

How to fill US Tax Info Step 2 - The Tech Trackers

Here you have to choose your AdSense account type- Individual or Business. read this article on how to find your AdSense account type. Our account type is individual so we have selected that and click next.

After that, you will be asked the below question. Are you a citizen of the United State? 

How to fill US Tax Info Step 3 - The Tech Trackers

Here I am filling form from India, so my answer will be NO.

After that google Adsense will show you available Tax form options for your Adsense account :

How to fill US Tax Info Step 4 - The Tech Trackers

As shown in the above image, we have options of two W-8 forms:

1. W-8BEN: This form is most commonly used by non-US Individuals and would also be used to claim tax treaty benefits.

2. W-8ECI: This form is most commonly used by non-US Business entity or individual that earns income related to it's US trade or business and fires a US income tax return.

Here, I as an individual come to claim tax benefits so I have chosen 1st option and click on Start W-8BEN Form.

After that, you will be redirected to the below form where your name will be automatically populated in the name section.  Here we have to select your country of citizenship (India) after that it's time for Tax Identification Number (TIN).

For India TIN = PAN No. as stated here - https://support.google.com/youtube/answer/10390801?hl=en#zippy=%2Cwhat-is-a-tin-taxpayer-identification-number

So, fill in your PAN Number and hit Next.

Next Step, here we have to enter your Permanent Adress (Address which you have entered while creating your Adsense account.

How to fill US Tax Info Step 6 - The Tech Trackers

If your mailing address is the same as permanent address check that box or fill in your mailing address and hit Next.

The next Step is Tax Treaty:- here we have to inform google that we are from India and came here to claim a reduced tax rate as per our tax treaty with the US.

How to fill US Tax Info Step 7 - Tax Treaty - The Tech TrackersHow to fill US Tax Info Step 7 - Tax Treaty - The Tech Trackers

So here click Yes and select a country India and click Next

Now, in the next section, we have to select various income types and apply for reduced rates.

How to fill US Tax Info Step 8 - The Tech Trackers
How to fill US Tax Info Step 9- The Tech Trackers
How to fill US Tax Info Step 8 - The Tech Trackers

Once all selected hit Next

After that, you will see a Document Preview where you can preview your form and take a print if you want.

How to fill US Tax Info Step 11 Document Preview - The Tech Trackers

Confirm the form and hit Next.

The next Step is self-declaration and signature. Here select the appropriate option and hit Next.

How to fill US Tax Info Step 12 Signature - The Tech Trackers

On the next screen, you will be asked, whether you perform any activity or service in the US. You have to select Yes/No appropriately.

How to fill US Tax Info Step 13 - The Tech Trackers

Now the last and important section, where most people make mistakes so, understand the question properly and then select an option.

Here google is asking whether have you received any payment from google or not before submitting this form.

How to fill US Tax Info Step 14 Final - The Tech Trackers

Here our account is new and didn't receive any payment from Google till date. That's why we selected and the first option and submit the form.

After submission of US Tax Info in your google AdSense account, you will get the below screen as confirmation that Google has received your form and approved it. 

How to fill US Tax Info Step 15 Approved - The Tech Trackers

Notification for the same will be sent to your registered email address as well.

Now, here we have seen how you can submit your US Tax info in your individual Adsense account, If you think you miss something or want to change some values simply click on "Submit New Form".

Note - once you click on Submit New Form, Your old form will be removed

So, go through this article again and fill your US Tax Form Properly Before 31st May 2021.

If you have any queries or questions regarding the above process or form feel free to comment down below, we would love to help you.

For Better Understanding, we have created a Youtube Video of the above process.


If you like this article or this article is beneficial for you then please comment down your thoughts and share the same with others.

Thank You,


Post a Comment

© 2016 The Tech Tracker . Powered by Blogger.