How to Claim Back US Tax on YouTube Royalties
If you're an international YouTube creator, you may have noticed that YouTube deducts U.S. withholding tax from your ad revenue, memberships, Super Chats, and other earnings. Depending on your country’s tax treaty with the U.S., you may be able to reduce this tax or even claim some of it back.
This guide will walk you through the process of claiming back U.S. taxes on YouTube royalties, whether through a tax treaty benefit or by filing a U.S. tax return.
Why Does YouTube Deduct U.S. Taxes?
YouTube is owned by Google, a U.S.-based company. Under U.S. tax law, earnings made from U.S. viewers are subject to withholding tax. If you didn’t submit tax information in your Google AdSense account, YouTube may have withheld up to 30% of your total earnings worldwide. However, many countries have tax treaties with the U.S. that allow for a lower withholding rate (sometimes as low as 0%).
Step 1: Check Your Withholding Tax Rate
To check if you're eligible for a lower tax rate:
Log into Google AdSense.
Go to "Payments" > "Settings" > "Manage tax info".
Check if you’ve submitted tax information and what withholding rate applies.
If your country has a tax treaty with the U.S., but you didn’t claim the benefit, you may have overpaid and could be eligible for a refund.
Step 2: Determine If You Can Claim a Tax Refund
You can apply for a refund if:
You paid more than required due to missing or incorrect tax information in AdSense.
Your country has a tax treaty with the U.S. that allows for a reduced withholding rate.
You had U.S. tax withheld but had no U.S. tax liability (i.e., you’re not required to pay U.S. taxes).
Step 3: Obtain an ITIN or EIN (If Needed)
To claim a tax refund from the U.S. Internal Revenue Service (IRS), you may need a Taxpayer Identification Number (TIN). This can be:
An Individual Taxpayer Identification Number (ITIN) – for individuals.
An Employer Identification Number (EIN) – for businesses.
To apply for an ITIN:
Fill out Form W-7 and submit it to the IRS along with proof of identity (usually a passport).
You can apply by mail, through an IRS Certifying Acceptance Agent, or at an IRS office.
Step 4: File a U.S. Tax Return (Form 1040-NR)
If you are eligible for a refund, you must file a Form 1040-NR (U.S. Nonresident Alien Income Tax Return). Here’s how:
Download Form 1040-NR from the IRS website.
Fill out the form with your income and tax withholding details (you’ll find these in your Google AdSense earnings reports or Form 1042-S, which Google issues annually).
Claim the refund under "Overpaid Taxes" if applicable.
Attach Form 1042-S, which Google provides by March 15 each year.
Mail the completed form to the IRS.
Where to Mail the Form?
The mailing address depends on whether you’re including a payment or requesting a refund. Check the latest IRS instructions for the correct address.
Step 5: Wait for Your Refund
Tax refunds take time—usually 3 to 6 months or longer. You can check your refund status using the IRS "Where’s My Refund?" tool.
Bonus: Prevent Future Overpayments
To avoid overpaying U.S. tax in the future:
Submit or update your tax info in AdSense.
Claim your country’s tax treaty benefits to lower withholding tax.
Keep track of your Google AdSense Form 1042-S for tax filings.
Final Thoughts
If you’re an international YouTuber, claiming back U.S. taxes on YouTube royalties can be a complex but worthwhile process. By ensuring your tax details are correct in AdSense and filing a U.S. tax return if needed, you can reduce or recover excess withholding tax. If you’re unsure, consider consulting a tax professional like Just Breve who specializes in international taxation.
Can Just Breve help?
Yes, we can. Just Breve is a US tax accounting firm, assisting non-US persons with their US tax filing requirements, including filing a 1040NR and obtaining an ITIN. We assist in applying for a new ITIN or renewing an existing ITIN. We are a certifying acceptance agent (CAA) and have a contract with the IRS to help with Form W-7 ITIN applications (and EIN applications).
T: 0208 1444632
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