About tax reporting for 2021 earnings
In 2021, we made it easier to submit your tax information to Udemy by integrating our instructor tax platform with your Payout & Tax Details page. Now, we’re making it easier to access your year-end tax reporting by making Forms 1099-MISC and 1042-S available there too.
Read on to learn about the forms Udemy provides, who will get them, and how you’ll access them.
What are Forms 1099-MISC and 1042-S?
Form 1099-MISC and Form 1042-S summarize your relevant Udemy payments and US tax withholding for the previous year. US instructors may use their form to file their annual tax return with the United States Internal Revenue Service (IRS). Non-US instructors may use theirs for record-keeping and/or to report their earnings to their own local tax authorities.
Though Udemy also files a copy of these forms with the IRS, all instructors are responsible for reporting their earnings to the government authorities relevant to them for the purposes of income tax collection. If you have questions about your income tax obligations, please consult a tax professional.
What’s included on these forms?
These forms denote the taxable amounts paid to you by Udemy during the 2021 tax year, as well as any U.S. tax withheld from those amounts.
On a 1099-MISC, the taxable amount is your total Udemy payout for the relevant period. On a 1042-S, the taxable amount is the portion of your Udemy revenue that came from US sources. This includes sales to US learners, or subscription revenue derived from their consumption of your courses.
Who receives these forms?
- If you filed Form W-9 (for US persons or entities) and had at least $10 in total payments in 2021, you’ll receive Form 1099-MISC, unless you filed as an S or C Corporation. No year-end tax form is required or provided for S and C Corporations.
- If you didn’t submit a valid tax form and received payments exceeding $10, you’ll also receive Form 1099-MISC.
- If you filed any other tax form and had any payments from US sources in 2021, you’ll receive Form 1042-S.
If you didn’t meet any of the payment thresholds described above, you won’t receive an end-of-year tax form from Udemy for 2021.
How will forms be delivered?
This year, we’re providing access to your year-end tax forms directly on Udemy. We’ve integrated with 1099Pro to enable you to securely download a PDF of your forms from your Payout & Tax Details page. If your tax status changed during 2021 such that you’re receiving multiple forms, you’ll be able to access all your 2021 forms in the same place.
We’ll also mail a physical copy of your form to the address you provided when you submitted your tax information. If you haven’t submitted a valid tax form, you’ll only receive a digital copy via your Payout & Tax Details page.
When will forms be available?
If you’re receiving a 1099-MISC, you should expect it to become available by early February 2022. If you request changes to the form provided to you in February, you may receive another paper copy in mid-March, and the corrected form will be added to your Payout & Tax Details page.
If you’re receiving Form 1042-S, you should expect it to become available by mid-March 2021.
What if my address or other information has changed?
The IRS requires that you submit new tax documentation whenever your tax circumstances change, including when you have a change of address. To register a new mailing address or make any other changes to your tax information, you should submit updated tax documentation as soon as possible via your Payout & Tax Details page.
If you have questions about the process of receiving year-end tax reporting, please contact Instructor Support or pose your question in the Instructor Community. Please note that we can’t help you file your taxes or provide specific tax advice, but we can help you understand how to access your forms or get other information for the purposes of tax reporting.
Thank you for continuing to teach on Udemy.