TuneCore will require your applicable U.S. tax documentation (i.e., Form W-8 or Form W-9). These forms are used to represent U.S. tax status, claim income tax treaty benefits (if applicable), and provide other information necessary to comply with U.S. tax information reporting and withholding rules.
The following information will be helpful when filling in tax information via Payoneer. Do note tax related questions beyond what is written in this article should be consulted with your tax advisor.
There are several forms available, which one should I fill out?
- Please use the wizard provided on the first page of the tax form, which should indicate the appropriate form for you to complete.
- If you are a “U.S. Person” by definition of the IRS (https://www.irs.gov/pub/irs-pdf/fw9.pdf), then you would need to fill out a W-9. If you are a foreign business or non-resident alien earning income sourced from the U.S. then you are required to submit one of the W-8 forms. We highly suggest you use the wizard to determine which appropriate W-8 form you should use, however you can also find more information about which W-8 form to use at the IRS website (https://www.irs.gov/pub/irs-pdf/iw8.pdf).
- Please note, however, that we cannot provide tax advice. You may want to consult your local tax advisor, or the IRS at www.irs.gov, for further information regarding U.S. tax reporting guidelines, withholding, and the appropriate documentation for you to complete.
Do I need to do this if I already pay taxes in my country of residence, outside of the U.S.?
Yes, you are still required to submit the appropriate W-8 form. There are tax treaties between the U.S. and many countries that stipulate a lower rate of withholding, and in many cases a 0% withholding, so if you are a resident of a country that has a tax treaty with the U.S. and claim tax treaty benefits on the appropriate form, there will only be tax withholding up to the applicable percentage.
Do I still need to do this if I don’t use TuneCore Music Publishing Administration?
This is not limited to just Publishing Administration. It is for all reportable earnings posted to your TuneCore account. Please fill out one form per TuneCore account.
I’m having trouble filling out the form, what should I do?
If you haven’t already, please use the wizard provided on the first page of the tax form to ensure that you have selected the appropriate form to complete. Please also ensure that you have filled out all required fields. It might also help to clear your cookies or use an incognito window.
If you are still having trouble, please read this article.
What should I do if I pay more than one artist or entity from my account?
Even if you have multiple artists or entities that you pay out of your TuneCore account, you are only able to submit one W-8/W-9 per TuneCore account, which will include reportable income from all artists or entities linked to your account. Please use the wizard provided, or consult your local tax advisor for more information and guidance on how to fill out the tax form.
Can I fill this form out once and have the information apply to all of my TuneCore accounts?
Unfortunately, each account will need its own tax form, as we don’t have the ability to “link” accounts for tax purposes.
Will I be receiving a 1099 from TuneCore for the previous tax year?
If you are a U.S. person or U.S. resident by definition (https://www.irs.gov/pub/irs-pdf/fw9.pdf) you will receive a 1099 for qualified earnings posted to your TuneCore account in applicable tax year.
As a non-U.S. person, I don’t have a U.S. Individual Taxpayer Identification Number (ITIN). Do I need to apply for one with the IRS in order to complete this form?
If you are required to submit a W-8 form as a Foreign Person (https://www.irs.gov/pub/irs-pdf/iw8.pdf) then instead of a U.S. ITIN, you can supply your foreign tax ID instead. This will not affect your ability to claim treaty benefits. That said, we cannot provide tax advice. So, you may want to consult your local tax advisor, or the IRS at www.irs.gov, for further information regarding U.S. tax withholding and information regarding reporting guidelines and the appropriate documentation for you to complete.
Why am I not allowed to enter Form 8233?
When going through the wizard, please do not choose “personal services” as you are not providing a personal service, but rather generating a royalty income.
How do I know if my form was successfully submitted?
If you can still see the Submit Form button, it means the form hasn’t gone through. Please try again. When the page changes from Submit Form to Edit Form, that’s a confirmation that we have received it.
What is backup withholding and why do I have to pay it?
Backup withholding is a method the IRS uses to ensure that all taxes due on certain types of income are paid by requiring the payor (TuneCore) to withhold, and deposit with the IRS, a portion of their payments. The payor has the financial obligation to withhold a standard rate of 24% of each payment made to the payee and remit this amount to the IRS if the payee has not provided their legal name and tax identification number (Social Security Number for an individual or Entity Identification Number for an entity). The most accurate manner to collect this information is through the use of a Form W-9.
TuneCore is assessing withholding on all untaxed earnings from 2021 as well as all earnings for 2022 for which no W-9 form was provided. Withholding will also be deducted from all incoming payments until a valid W-9 tax form is submitted. Please note that TuneCore requires a W-9 (Individual or Entity) submitted through Payoneer for all U.S. & Territories taxpayers; W-9s sent directly to TuneCore will not be accepted.
For more information, please see these resources from the IRS website and contact a tax advisor.
Can I reclaim the withheld amount?
Yes, it is possible to reclaim backup withholding as a tax credit when filing your income tax return. TuneCore cannot reclaim the funds on your behalf or re-deposit them back into your TuneCore account.
The first step is to prevent further withholding by correcting the underlying issue: either by submitting your W-9 or providing corrected taxpayer information through an updated W-9.
If you have had tax withheld, you can report the federal income tax withholding (shown on Form 1099) on your return for the year you received the income. The Balance History page in your TuneCore account will show records for each time withholding was assessed on a royalty payment.
For more information, please see these resources from the IRS website and contact a tax advisor.
What payments are subject to withholding?
Taxes will be withheld from all revenue generated from recordings and compositions earned during the time that the payee’s country is U.S. or Territories, which have not previously been taxed and for which the payee has not submitted a valid W-9 through Payoneer.
I am not/am no longer a U.S. citizen or resident but still see that I’ve been withheld. Why is that?
If you have onboarded to Payoneer, check that the country under which your Payoneer account is registered is your country of residence or citizenship. If your Payoneer account does not accurately reflect the country to which you have an obligation as a taxpayer, please reach out to update your account details. This will involve re-registering for Payoneer using appropriate identification. In addition, please note that submitting a W8* with a non-U.S. country is not sufficient to change your country in Payoneer’s system.
If you have not yet signed up for Payoneer, please do so using identification appropriate for your country of residence or citizenship. We also recommend updating your address under Account Settings or if prompted during checkout or withdrawal.
I submitted a W-9 in the past to Payoneer but I still see that I’m being withheld. What’s going on?
Past W-9s submitted to Payoneer are considered valid indefinitely and should not expire. However, if you recently submitted a new form that was not a W-9 (such as any form of W8*) without also changing your country to non-U.S., you will be withheld on the basis that your most recent form is not a W-9, which is the required form for any taxpayer in the U.S. & Territories. Please note that submitting a W8* with a non-U.S. country is not sufficient to change your country in Payoneer’s system.
Another reason for withholding could be that you have disassociated from the Payoneer account under which you originally submitted that W-9. This renders the form unretrievable. If you have recently made changes to your Payoneer account that required you to re-register, please make sure that you have completed the onboarding process and have submitted a W-9 to your updated Payoneer account.
I received a 1099 in 2021 but I’m being withheld. What gives?
If you’re a TuneCore Publishing Administration customer, you may have received a 1099 in 2021 on the basis of a manually-submitted W-9 (i.e. a form submitted directly to TuneCore). 2021 was the last year these forms were being honored; from 2022 onward, only W-9s submitted through Payoneer will be accepted. You will therefore see withhold applied to your 2022 royalties.
If this W-9 could be applied to your Distribution earnings as well, then the 1099 you received for 2021 should reflect your combined royalties from both Publishing and Distribution. However, if we were not able to use your W-9 for your Distribution earnings (such as in the case of a Name & TIN mismatch), then you will have received a 1099 only for your Publishing earnings. As mentioned, manual W-9s as well as W-9s with incorrect information (such as Name-TIN mismatch) will not be considered valid in 2022 and you will therefore see withholding applied to your 2022 earnings.
I do not see the “Activity” tab in my Payoneer dashboard. How can I submit my form?
Please check the notification section of your Payoneer dashboard for a notification that says “Information Required to Process Payments”. This should lead to an informational popup requesting tax information with a button to submit your tax form. If you have any difficulty accessing your dashboard, please reach out to Payoneer’s client support team here.