In this post, i am going to show you how to fill and submit your Udemy tax withholding form. This is required once you start earning on Udemy. Every US companies are now required to withhold certain cut of your payout for tax purposes and Udemy is not exempted.
The tax form is needed so that you can get the right amount of tax deductions. The tax deductions is based on your location and if you don’t fill this form, the maximum 30% tax deduction will be applied to your payout. Filling this tax form also completes the udemy business requirements.
Watch the video tutorial below to see the complete step by step process
Below is the full transcript of the tutorial
Once you start earning as an instructor, you will see this notification in your dashboard right here that say you should fill your tax documentation before your next payout. First make sure you copy your instructor ID, Its right here, we will need that when filling the tax form. Click on “Begin submission to start filling the tax document”. Now you get this pop up, just click ok. Then Click ok again to begin.
Now here select “instructor type”. If you are have an individual account, then select “individual” and if you are part of a group and a teaching company, then click on “entity”. For me, i will click “individual”.
Then start adding basic details. Here “Are you a Us individual”. if yes, select “Yes” but for me, i will select “No”. Then add your “Instructor ID” here. Its the ID we copied before from the dashboard. Also make sure you save it somewhere because you will need it when you ever want to contact support. Now add your name, surname, select your country and add your date of birth.
Next is Tax identification number. If you are a US citizen then select US TIN and add your TIN number here. For me, i am not a US citizen or live here, so i will choose “US TIN not applicable”. Then select my country, Nigeria.
Now add your address, i will fill that in and go to next step. Here add your name, email address and phone numbers. and click “continue”.
Then you will be sent a confirmation code to your email address. The code will be required at the end of the tax form submission process. For now, click ok to continue.
Then you will sent to this page where you have to select the right tax form that applies to you based on your location. I am in Nigeria and the right tax form is the W8BEN tax form. This is for individuals who are not US citizens or reside in US that receive non-business income in the U.S. These other ones are different types that are based on US relations to different countries. For Nigeria, the right one is this one, so i am going to click on this one.
Then you get asked if you are a US citizen. For me, it’s No. Then add country of citizenship and date of birth. Then “Are you subject to taxation as a citizen of US”, select “No”, “Then are you physically present in the States”, i select “No”. Now click “continue”.
Here you have to add your Tax identification number or TIN. This is a continuation of the Tax Identification Number entry we entered before. Here you can add your foreign Tax identification number. I am sure you have one in your country. i do have one with the Corporate Affairs Commission and i am going to enter that here. If you are a Nigeria, learn how to get your TIN. Link is in the description.. Then click “continue”.
Now Treaty claim statement, here you have to confirm if your country has tax treaties with the US. If its yes then you are eligible for a reduced tax rate based on the treaty agreement. If you are not sure if your country is in the list of countries, then click “Yes” and here you will see the lists of countries with treaty agreement. Check to see if your country is in the list, if not then select “No”. My country is not in the list, so i will select “No”. Then click “continue”. Click “continue” again to further confirm it or click “change” if you want to go back and change this. I click “continue”.
Now to the Legal certification page, just check everything. This is just a confirmation of what you have selected or entered so far on the tax form. You need to check all to agree to terms. Then click “continue”.
Now you need to enter the confirmation code sent to your email earlier. Go to your email and copy the code. Go back and here paste the code. Here sign your Name and finally click here to confirm your acceptance of the declarations. Click on the “submit electronically” button to submit. Check here to agree once more. Click here to give consent to receiving a recipient statement electronically. Then click “submit” to submit your tax form.
Now you have completed the Udemy US tax withholding form. You can click here to download the PDF so you can have a copy if you wanted. Now its done. Wait for a while and you should get this notification in your email if it’s approved. Now you are ready to start getting your payout with the right tax deductions and now you have fulfilled all Udemy business requirements.