Online creators receive royalty income from advertisements run on their channels. This royalty income may consist of U.S. source income which is taxable when paid to nonresident creators. This article and video discusses those tax rules and the various forms.
YouTubers with monetized channels can generate advertising revenue in the form of royalty income. For U.S. source royalty income paid to nonresidents, those receipts may be subject to federal income taxes.
The IRS Form 1042-S is generally filed when U.S. source income is paid to a nonresident for federal tax purposes. The form is also filed to report the amount of federal income taxes withheld at source.
Form 1099-NEC is filed by U.S. entities when they pay nonemployee compensation to an individual or business. Nonresidents that work for U.S. companies generally receive a Form 1042-S instead of Form 1099-NEC.
U.S. source Fixed, Determinable, Annual or Periodic (FDAP) income is generally subject to taxation when amounts are paid to nonresident taxpayers. This article summarizes the key components of FDAP income.
Nonresidents of the U.S. are generally not subject to any U.S. federal income taxes unless they have U.S. source income. U.S. source FDAP income paid to nonresidents is subject to withholding taxes at source.
Many nonresidents of the United States often open bank accounts with U.S. based financial institutions. A common question and concern is what impact, if any, does that have on the individual's US tax obligations. This article covers the basics of nonresident taxation and whether US bank accounts create any tax liability.
Content creators on YouTube and Twitch are compensated for running advertisements on their content. YouTube payouts are now characterized as royalty income rather than nonemployee compensation. This article discusses those changes.
The U.S. limited liability company (LLC) is one of the most coveted entity types in the world. There are generally no restrictions on who can be an owner in a U.S. LLC, however, there are special reporting requirements. This article and video cover the basic reporting requirements.
