In updating our policies to align with other marketplaces, and in accordance with IRS reporting rules, Udemy will not be issuing any 1099-MISCs to Instructors. To access your yearly earning report, you can view your earnings directly from your PayPal account, by following the directions in the FAQs below.
All Instructors are users of the Udemy platform. No matter the type of income you’re reporting, you are not considered an employee of Udemy. As such, you are not required to provide Udemy’s EIN (Employer Identification Number) on your tax return.
Q: How can I see right now how much I made from Udemy last year?
A: The most reliable way to see how much you earned from Udemy over a given date range is to query your PayPal account for payments received from Udemy. To do this, follow these steps:
- Navigate to this link in your PayPal account (web platform required)
- Select the date range for your query (i.e. 01/01/16 start to 12/31/16 End)
- Filter by Transaction Type “Payments Received”
- Add “Udemy” as an additional filter
- See query results for payment sum (screenshot here)
Q: Isn't a Form 1099-MISC required to file my taxes?
A: No. You are obligated to report income you receive, whether or not that income is reported on IRS Form 1099-MISC or any other tax report.
Q: Can someone at Udemy help me figure out how to declare my income?
A: Udemy is not able to provide you with any tax advice. As every person's situation is different, we recommend that you consult your own tax advisor.
Q: Will I have to fill out a Form W-9 if Udemy is not issuing my Form 1099-MISC?
A: Udemy is required by the IRS to collect Form W-9 (US Instructors) and Form W-8BEN (non-US Instructors). Instructors earning revenue from Udemy will need to fill out the appropriate form. You will receive an email with instructions on how to provide the form to Udemy over the coming months.
Q: Previously Udemy issued Form 1099-MISCs to instructors. Why did Udemy stop?
A: We reviewed our practices in light of what other platforms are doing and the recently changed IRS guidelines for companies using third party payment processors, we have determined that Udemy, Inc. is not subject to issuing 1099 MISC forms. Payments made through third party networks like PayPal are not subject to reporting through the 1099-MISC, rather it is the responsibility for the payment processor to issue any tax forms. Other platforms like TaskRabbit and Uber follow this practice. PayPal only issues Form 1099-K to payees who received over $20,000 and more than 200 transactions in a given year. Udemy pays instructors twelve times a year, so payments from Udemy alone would not qualify you to receive this form from PayPal.
The VAT (Value Added Tax) and GST (Goods & Services Tax) is a form of consumption tax on goods and services. The Japanese Consumption Tax in Japan is a type of VAT. VAT / GST rates and regulations vary across geographies.
Udemy currently handles the collection and remittance of VAT / GST for all purchases made on the website by students in the European Union (EU), South Korea, Japan and New Zealand. Students purchasing in the EU, South Korea, Japan and New Zealand will see the course price and VAT / GST as a single total, just as they would for other goods and services sold there. Students will receive an email receipt which breaks down the course price and VAT / GST separately.
Udemy is currently exploring whether certain instructors’ courses may qualify for EU VAT exemption. Until then, Udemy cannot accommodate VAT / GST exemptions.
VAT / GST on Mobile
Apple and Google, who run the iTunes and GooglePlay stores, respectively, handle all purchases on the mobile platform and will collect and remit VAT / GST.
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