Submitting tax forms to Udemy
Udemy is based in the United States, which means Udemy instructors have certain tax obligations to the U.S. government. We know it can be confusing to know what tax forms you need to submit as a Udemy instructor, so we’ve partnered with Comply Exchange to make it easier for you to complete the required forms via a secure platform (taxforms.udemy.com).
Currently, we’re starting with published instructors who use English as their Udemy language setting, but we will soon be localizing the process for all the languages that the Udemy site supports.
Note: Udemy is not able to provide tax help or give any advice about what to include in your tax form submission. This guide is intended to help answer common questions that Udemy instructors might have about their obligation to submit tax documentation.
What do I need to do?
Udemy has begun to proactively email published instructors to submit their tax forms via our secure form submission site (taxforms.udemy.com). If you haven’t yet received the link to submit your tax forms, you can expect this in the coming weeks. We’re starting the process with instructors who use English as their Udemy language setting, but we will soon be localizing the process for all the languages that the Udemy site supports.
If you’re a new instructor who hasn’t yet published a course, no action is currently required, but you may be contacted to submit your tax documentation in the coming weeks.
Is the process safe?
How do I know which form I need to submit?
Udemy has provided a platform to simplify the process of selecting and completing the right form. However, we are unable to provide tax advice. If you’re not sure how to answer a question about your tax status, we recommend that you consult with a tax advisor to ensure you’re using the right form and entering information correctly.
What happens if I don’t submit a form?
Udemy will soon begin withholding the appropriate amount from each student transaction/course sale for tax reporting purposes. If we don’t have your tax form on file, we will be required to apply the maximum withholding rate. For more info on withholding click here.
Should I expect a 1099 in return for the form I submit?
As Udemy implements withholding, we’ll ensure that you receive a year-end summary of any amounts we’ve withheld from your total payouts. Once we’ve fully implemented our new withholding tax system, we’ll issue you a Form 1099 (for US instructors) or Form 1042-S (for non-US instructors) for each tax year after that.
I previously submitted my tax forms to Udemy. Do I need to complete this new process?
There are some requirements concerning the recency of the tax information you provide. We may be asking you to provide your information again to be absolutely sure we have your most up-to-date tax status.
Can I just fax/email/mail you a copy of my tax form rather than go through this site?
With tens of thousands of instructors teaching on Udemy today, we need to make sure we’ve got everyone’s tax information stored securely, in one place, in the same format. This means that we’ll be requiring all tax information be submitted through the Comply Exchange platform (taxforms.udemy.com) moving forward.
Where can I find more information on tax forms?
The US Internal Revenue Service (IRS) provides instructions in English for the various tax forms that our tax form tool supports:
Since Udemy is unable to provide tax advice, we recommend that you consult with a tax advisor to ensure you’re using the right form and entering information correctly.
I’m not a US citizen. Why do I need to pay taxes to the US government?
Udemy is based in the United States. All companies based in the US have to comply with IRS (Internal Revenue Service) regulations, which includes collecting information about your tax status as an instructor. Furthermore, no matter where you’re located, you may have enrolled students from the United States, and those transactions may be subject to US tax.
In the near future, Udemy will begin automatically withholding the appropriate amount from each instructor payment based on tax status.
Your rate of withholding will depend on a number of factors, most importantly your country of tax citizenship. We can’t tell you exactly what rate of withholding will apply to your Udemy earnings until your form is submitted and approved, but when we do begin automatically withholding, you’ll be able to see the rate in your revenue report.
What happens if I don’t submit a tax form?
Udemy is giving all instructors time to fill out the necessary forms. Once withholding is in effect (later in 2019), if we don’t have an instructors’ tax information on file, we’ll pause your next payout and remind you again to submit.
If at that point we still don’t have your tax information, we’ll be required to default to the highest potential level of withholding on your revenue and we’ll resume sending payouts (no longer holding them), so that we can minimize your risk of noncompliance.
This might mean that we withhold more from your payouts than the Internal Revenue Service (IRS) actually requires. Depending on your circumstances, there may be avenues for instructors to recoup funds that were withheld in excess of your legal obligation.
Udemy will send reminders throughout this process, but completing the form submission now is the best way to avoid any late complications.
Beginning in September 2019, English speaking instructors will be asked to submit their tax information to Udemy via our form submission service at taxforms.udemy.com. Udemy will begin to email more instructors to participate in the coming months when additional language support is added.
Udemy has partnered with Comply Exchange to help instructors navigate the form submission process more easily and securely share their tax documentation.
Note: Udemy is not able to provide tax help or give any advice about what to include in your tax form submission. This guide is intended to help instructors navigate the form submission page. For individual tax advice, please consult a tax professional.
Where can I find my Udemy User ID?
You’ll be asked to enter your Udemy User ID in the “Basic Details” section in the first page of the form submission process. This Udemy User ID is required as a unique numerical identifier when submitting your tax information.
You can find your Udemy User ID in the invitation email you received when you were asked to submit your tax forms to Udemy.
If you are not able to locate your Udemy User ID, please contact our Support team at this link, and they can help make sure that you have the right information for your account.
How can I save my progress in the form submission process?
After you have selected the tax form type and you have begun to enter information to populate the form, you’ll see the option Save and Exit.
After Clicking Save and Exit you’ll be prompted to create login credentials for taxforms.udemy.com. You should use the email address associated with your Udemy account. You will also be required to enter the 6 digit (alphanumeric) confirmation code which is automatically emailed after you completed Step I.
Finalizing your form submission with your confirmation code
In the final step of the form submission process you’ll be asked to provide an electronic signature as a final certification. A confirmation code is required in this final step, which is automatically emailed to the address you entered in Step I.
I can’t find my confirmation code in my email. What should I do?
A six digit, alphanumeric confirmation code is required to certify your form submission. If you cannot locate the confirmation code in your email inbox, consider these troubleshooting steps:
- Confirm that you are checking the email address you entered in Step I of the form submission process
- Search for an email sent from firstname.lastname@example.org
- Check your spam and junk email folder for the message
- From the final certification page at taxforms.udemy.com, click “Resend confirmation code” and in the pop-up browser message, confirm that the correct email address is receiving the email. Wait up to 5 minutes for delivery of the email.
- If the above steps fail, please contact our Support team at this link, from the email address associated with your Udemy account for additional help.
How will I know my submission has been approved?
When you’ve completed the final step in the tax portal, you should see a confirmation screen indicating your form was successfully submitted. From this page, you will also have the opportunity to view and download a copy of the tax form that you generated. Each submission will be reviewed upon receipt. If there is an issue with your tax form, we’ll notify you via email.
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 VAT / GST for all purchases made on the website by students as applicable based on local tax rules. In countries where VAT / GST applies, Udemy displays course prices as “tax-inclusive” and Students in these countries will see the tax-inclusive price as a single total, just as they would for other goods and services sold in their countries. Students will receive an email receipt which breaks down the course price excluding tax and VAT / GST separately.
VAT / GST on Mobile
Apple and Google, who run the App Store and Google Play stores, respectively, handle all purchases on the mobile platform and will handle VAT / GST.
If you have any further questions, please feel free to contact our support team.