W-9 Form Once Earnings Reach $600?

@zed_k4 (17627)
Singapore
October 19, 2009 7:01am CST
My question is: Do international members have to fill out the W-9 form once their earnings reach around $600 or more? Or is the form only for US residents only? I notice lots of writing sites have this rule, and I'm sure mylot has too. Say someone has earned around $600 in a given year in that site. And say he's from outside US. Will he have to fill in the W-9 form then? Thanks for helping..
6 people like this
18 responses
• Canada
20 Oct 09
It is only for US residents only not for us. Are you earning more than $ 600 ?
2 people like this
@zed_k4 (17627)
• Singapore
20 Oct 09
Not yet. But I might be able to reach it for this year, I believe..
@mariposaman (2967)
• Canada
20 Oct 09
No, W9 is for American residents. You probably will be asked for a different form covering non-resident aliens earning American income. Earnings are subject to income tax. However most people do not bother as someone like myLot is not required to report income to an individual until it reaches $600. You can be resident or non-resident, citizen or alien, and you are asking about the international members which would fall into non-resident alien category. While most people do not bother up to the $600 and I am sure the USA government will not get upset about a miniscule amount of income tax due, if any, once a certain amount is reached, the $600, it has to be reported by an enterprise like myLot and they would probably freeze any further payments until the appropriate forms are sent to the IRS. I am not sure about the details so please do not take this as legal advice. I believe non-resident aliens will have to file a Form 1040NR, U.S. Nonresident Alien Income Tax Return or Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents. There are exceptions if your country has a tax treaty with the USA. For example Canada where I live does, and I would declare the $600 as foreign income and pay the appropriate taxes to Canada and non to the USA, thus I would only have one income tax to file. See this and read carefully http://www.irs.gov/businesses/article/0,,id=203094,00.html There are links to the appropriate forms. USA citizens living abroad and still earning money from the USA are still required to submit a USA income tax when their earings go over a certain amount. If you are making substantial earnings in the USA and not declaring, you could also get in trouble with your own government too for not declaring foreign income. A visit to your accountant or a tax lawyer might be in order, especially if you are making a living through USA online sites.
2 people like this
@zed_k4 (17627)
• Singapore
20 Oct 09
Thanks very much for taking the time to type all of this very valuable information. I totally learned a lot from this; and shall read up on the links you provided. I think being an independent contractor to different sites (even as a sub-line apart from our full time job), there might be this fine line of declaring a non-US resident form, as per your thoughts there. I shall wait if I get any kind of form once earnings reach $600 in a given year. Thanks again for your time, I sure appreciate it.
@mipen2006 (5528)
• Australia
19 Oct 09
Hey zed, sorry I don't know as it will never come into play with my minute earnings. However, iI guess it depends on your government. If you have to declare overseas income on your tax, or not. It definielt applies to Americans.
2 people like this
@zed_k4 (17627)
• Singapore
20 Oct 09
I think thinkingoutloud and others too have given a clear and concise explanation to my query. I think we have to check the tax rule which falls under independent contractor; in a sense we are working not as an employee but more like in that contractor category. I am sure now that I don't have to fill in the W-9, but will have to check with the tax rule in my country for the said term above. Thanks for your time, mipen.
1 person likes this
@BlueGoblin (1833)
• United States
19 Oct 09
You should go by the laws in your country. You can't fill out a W-9 because you don't have US Social Security Number. I don't know about the laws in your country but U.S. residents have to claim a certain amount of money.
2 people like this
@zed_k4 (17627)
• Singapore
20 Oct 09
Thanks for the explanation. I read others answers and I'm sure now that I don't need to fill in the W-9. You are right; I have to check the tax regulations in my country then..
1 person likes this
@kitty42 (3912)
• United States
19 Oct 09
[b]Hello my friend Wow what a good question, I didn't think about this, not that I am anywhere close to this point buy hey you never know what the future holds, thanks for this my friend. Great question [/b]
2 people like this
@zed_k4 (17627)
• Singapore
20 Oct 09
You are most welcome. It's great that we can ask friends around whom have knowledge and are able to share it with us; for areas which we aren't sure. I'm glad that I'm of little help in that sense to you too and vice versa for me in other discussions which I've learned accidentally. Enjoy your day, aite..
1 person likes this
@LadyMarissa (12162)
• United States
19 Oct 09
G'day Zed... I think it a rule for US residents ONLY. Here were are required to pay income tax on any earnings over $599. Unless your country has such a rule, I don't think it would apply to you. My understanding is that myLot was sending an PM to all those who are headed for the over $600 payout. If you haven't received that PM then you probably won't be affected. I'd like to point out that I'm speaking from common sense NOT knowledge. I hope you're having a GREAT day!!! Things better there???
@zed_k4 (17627)
• Singapore
19 Oct 09
Things are super duper great on my end, thanks Marissa.. it sure has been awhile since I've last seen you.. Common sense tells me I don't need to fill in the form too; but I just wanna make sure.. not just for the lot, other writing sites as well. So in this case, would it mean international members having to fill in the W9 to prove that we aren't from US.. like giving our own resident address for audit purposes and stuff.. ?
1 person likes this
@zed_k4 (17627)
• Singapore
19 Oct 09
Things are super duper great on my end, thanks Marissa.. it sure has been awhile since I've last seen you.. Common sense tells me I don't need to fill in the form too; but I just wanna make sure.. not just for the lot, other writing sites as well. So in this case, would it mean international members having to fill in the W9 to prove that we aren't from US.. like giving our own resident address for audit purposes and stuff.. ?
1 person likes this
@zed_k4 (17627)
• Singapore
19 Oct 09
Sorry duplicate..
1 person likes this
@thea09 (18324)
• Greece
19 Oct 09
Not a clue Zed, if anyone comes up with the answer pop a note for me in here then please
1 person likes this
@thea09 (18324)
• Greece
19 Oct 09
Cheers Lamby.
1 person likes this
@zed_k4 (17627)
• Singapore
19 Oct 09
Thea.. we won't have to fill in the W-9 after all..
@thea09 (18324)
• Greece
19 Oct 09
1 person likes this
@kun2349 (23475)
• Singapore
20 Oct 09
What's a W-9 form?? What is it being used for?? I have not seen anything like this in any forum sites.. MAybe not much ple has earned till that amount yet?? BUt i think it's only applicable for US residents, for tax purposes.. hehe ^_^ As i think i read somewhere, whereby they have to declare their online earnings, even thought it's not alot.. BUt i dunno if that's the form though
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
That's right, bro. The W-9 form is for US residents and I think writing sites would most probably send out this form once members have earned $600 at a financial year. So, I don't know whether as non resident aliens, we will be receiving the form or not, since I don't have any international friends whom have reached the mark and can answer this. Most friends here commented that the W-9 is a US resident form for the tax part. So what I am thinking either we get a different form and then we can continue earning past the $600 mark or they will stall us until we fill up the W-9, which in this case, we can't because it's only for US residents. But I think there might be a solution to this, which I'm still finding..
@zed_k4 (17627)
• Singapore
20 Oct 09
I think no. 10 answer to this discussion might be the answer that I seek after all.. thanks to thinkingoutloud..
@kun2349 (23475)
• Singapore
20 Oct 09
I have checked out his answers, and we need not be filling up or receiving such forms, as we are not USA residents.. BUt within our own country, singapore, it's up to us, to declare our online earnings.. By right, or legally, we must declare the source of our income, no matter how much is it.. BUt, most ple will tend to ignore it, as it's so little as compared to our jobs out there in the real world.. haha =D
1 person likes this
@mysdianait (64058)
• Italy
20 Oct 09
I can only speak for here in Italy and I have already discussed this with the accountant who fills out my tax form as I have several offline jobs during the year. Online earnings are added to those totals if they go over a certain level. So far that has not happened - but there is hope for the future. Check what are the laws in your country my friend
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
Awesome answer, Diana.. so I suppose I don't have to worry about the W-9 and just check out my own tax format in my country.
@mysdianait (64058)
• Italy
20 Oct 09
Yes because what we earn then ends up in our country so we have to do what is relevant to where we are. The limit is higher here
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
Same for us here.. but I think there might be no need for that. I'll double check. Thanks, D for your help..
• Canada
19 Oct 09
When you create your account here, you are asked to state your country of residence. If you are not in the United States, and choose your correct country, when you look at your payment information link (under preferences) you should see something like this, in red, further down the page: "I hereby declare under penalties of perjury that, in connection with the performance of services with myLot, LLC – a limited liability company domesticated in the State of Kansas within the country of the United States of America – I am not a citizen or resident of the United States of America. Further, I will notify myLot, LLC immediately if my status changes." I've been working as an independent contractor for years (which is basically what we are here, when we are compensated for what we do). I'm in Canada. Even though I've worked for many US clients, I naturally don't receive IRS forms such as the W-9. However, what we earn online is still taxable... whether or not we get a form like that. You can check with your local tax authority to find out what the limits and such are where you live :)
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
Lovely explanation; totally makes sense to me. So you are from Canada and has not received the form. That's so cool... I will check with my local tax authority whether I have to file in once I reach that amount.. (if).. thanks thinkingoutloud, this is great help for me. I'm more clear now about the functions of the W-9 now.
1 person likes this
• Canada
20 Oct 09
Any time, zed! Yep, I'm in Canada and I've never received any tax forms from any US client. Even if they sent me one, I wouldn't be able to use it. I keep track of what I earn online and it just gets reported on my tax returns in my self-employed income section. Of course, in the grand scheme of things, I'd love to be reporting a much bigger amount there... but all in due time, I hope
1 person likes this
@zed_k4 (17627)
• Singapore
21 Oct 09
The pleasure is mine too...That's awesome. I'm sure you'll be able to reach greater heights someday, and that includes all of us here whom are trying our best to have an alternative means to save for a rainy day and all that.. ..Have a nice day lotting...
1 person likes this
• United States
19 Oct 09
I think that applies to the USA citizens.
@zed_k4 (17627)
• Singapore
19 Oct 09
So, is there a need to declare anything then..for auditing..?
• United States
19 Oct 09
Not as far as i know. They say that USA residents have to fill out that sort of papers, but not overseas residents.
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
So once I reach that $600 mark, I'll be able to pass through without the form filling. Thanks, Shirley..
@anne25penn (3310)
• Philippines
20 Oct 09
Nice question Zed. I do know that the W-9 is only for US residents. But when international members join online earning sites, we are given this note/notice that once our earnings reach more than $600, then the tax form has to be filed. Now for those who might think that reaching this amount is impossible even for international members, the amount actually can be achieved especially if you get to join writing sites that pay good money. I don't know how they will track this tax filing or what would happen if international members don't file it. My online earnings for one month is more than $100 last month so if I continue at that pace, then before the year ends I might reach the $600 mark. I do see that my earnings are already taxed before they get credited in my paypal or alertpay account, wonder if that is the same? Is there a CPP or accountant in the house?
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
I feel the same way as you too, Anne and thanks for replying because at least I do know of another fellow friend here whom feels the same way too about this, besides the others whom have responded. You are right; the $600 mark isn't impossible like you said if say for one month one earns $100 at least for all combined earning sites, then by the end of the year, more than $600 can even be achieved. So that's why I was asking way in advance about this. Guess we have the same concern over this then.. I wish there's an accountant that can give us an opinion here for free too, LOL... but let's just wait; say we reach that mark, if the site wants us to declare a form, then we'll just do it accordingly.. I think you are right; the W-9 is only for US residents. So should we just make do with $599 and start all over again? .. kidding.. thanks for your time yeah..
@zed_k4 (17627)
• Singapore
20 Oct 09
Check out no. 10 reply by thinkingoutloud. She has got it clearly there; and I think we won't be receiving the form after all..
• Canada
20 Oct 09
International members of sites like this are SCREWED once they reach $600. To fill out a w-9 you have to be an American, unfortunately if you do not have a W-9 you can not earn more than $600 per site per year, so non-Americans are screwed, if they earn more than $600 a year. I am Canadian, and had this problem for a while. Then I married an American, and managed to obtain an American Taxpayer ID number (ATID#). I was unable to obtain one before we got married (I tried!!!) but once we got married, the IRS coudln't wait to issue me one. LOL Now i can earn all i want.
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
But surely there's a way once non-resident aliens have reached that amount? If not, then it will surely be a real bummer.. That's so cool that you can earn as much as you want now. I'm still looking for answers on the earning part; thanks for raising it.
@mysdianait (64058)
• Italy
20 Oct 09
Each country has its own tax laws. I am in Italy and have to abide by the laws here. I can earn whatever amount Ilike online and there is nothing here that states anywhere that I cannot earn that amount or even much more. I have some sites paying dollars and some in euros. At the end of the years the total, if it exceeds the limit, is calculated on my tax forms along with earnings from other offline jobs.
1 person likes this
• United States
22 Oct 09
i'd ask mylot.W-9's i think are just for american taxes,but each country may have something different.
1 person likes this
@zed_k4 (17627)
• Singapore
22 Oct 09
Thanks for your opinion. I'm having the positive thoughts now that the W-9 is for US residents only. Appreciate your answer..
@stephcjh (32328)
• United States
20 Oct 09
I think it is only for the United States as the government here requires us to pay taxes on any earnings $600.00 or above. I am not positive of it though. I do not know how other governments do their taxes.
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
Hopefully, for international members, we can continue pass the $600 mark then, because we will then be answerable to our own country tax format..
• Philippines
19 Oct 09
hello zed, I don't think so.. only US Citizens can file that. for me, oh, my am only getting ten to twenty dollars a month. and file a tax form no way. six hundred dollars, nice i hope i can earn that here but it's only a dream come true. it's so sad but true
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
Bro.. take a look at Constant Content. The site is suitable for international members to have a go at writing. Works like the task thingy in the lot.. So we don't have to fill in the form then. Awesome.. A great mylot friend has advised me before that Helium marketplace can also be a good area, but you need to work out the stars and all..
@cbeee3 (2064)
• India
19 Oct 09
As most others have already pointed out, it's a US taxation form. So you don't have to fill the form, unless you are filing taxes in the US. But since earning online is still a source of income, you will have to check the Tax laws of your country.
@zed_k4 (17627)
• Singapore
19 Oct 09
Hiya sweets..thanks for clarifying this. Great answer, so there's nothing to worry about then..
@cbeee3 (2064)
• India
21 Oct 09
Anything for you hun.. well almost anything..
1 person likes this
@zed_k4 (17627)
• Singapore
22 Oct 09
Anything's not enough! I want everything..
@tdemex (3547)
• United States
19 Oct 09
Mute point! You'll not reach that amount in one year anyway!tdemex
@zed_k4 (17627)
• Singapore
19 Oct 09
Not in the lot, ha...but for other sites like Helium where people can earn hundreds from marketplace or other sites with upfront payments.
1 person likes this
@tdemex (3547)
• United States
19 Oct 09
If you make that much on any site I'd join under you in a heartbeat! Got any for me?
1 person likes this
@zed_k4 (17627)
• Singapore
20 Oct 09
No down-line, really. Try Constant Content or Helium; aplenty of things you can write for. But you must love to write, which I think you do; and you seem to have lots of ideas as well..