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US Taxes as a School Owner, Author, or Affiliate

This article goes over how Teachable school owners, authors, and affiliates can handle US federal and state income tax for money received through Teachable. To learn more about submitting and receiving tax forms, see Tax Forms on Teachable. For more information about collecting and remitting EU VAT, see VAT on Teachable

U.S. Federal Tax

If you are using Teachable Payments, or the Monthly Payment Gateway, with BackOffice, then for tax purposes you will be treated as an independent contractor. This is because the funds are paid by the student to Teachable, and then Teachable pays you (and your authors and affiliates).

This means that, as is the case with all independent contractors, you (whether you are an owner, author, or affiliate) will be issued a 1099 if your earnings through us exceed $600. We will request a W-9 from you and that information will be used to send your 1099. This only applies if you are a U.S. person (a term inclusive of citizens, resident aliens, and qualifying entities).

If BackOffice has been disabled on Teachable Payments or the Monthly Payment Gateway, then the school owner is responsible for issuing 1099 forms to authors and affiliates for any payouts that have occurred while BackOffice was disabled. For example, if you are on the Monthly Payment Gateway but have disabled BackOffice for the whole fiscal year, Teachable will not send any 1099 forms to your authors and affiliates. This is because no money was sent from Teachable to your authors and/or affiliates.

NOTE: The figure we use for your 1099 is based on how much we paid you during that year, rather than your sales made during that year. This means that because of our payment schedule, sales made at the end of one year may be included in the form for the next year (e.g. if you make a sale on December 20 and are paid on February 1, that payment counts as 2017 earnings).

If you are a foreign person, you will be required to submit Form W-8BEN or Form W-8BEN-E. Learn more about submitting tax forms as a foreign person here.

NOTE: If you are using custom payment gateways through Stripe Connect or PayPal, you are fully responsible for any tax reporting related to your school (including issuing forms to authors/affiliates if necessary). You will not receive forms from Teachable.

U.S. State Tax

Teachable does not handle U.S. state sales taxes. If you find that you need to add additional taxes for your state, you may wish to add an average tax amount to the base purchasing price for the course, and then save that amount to pay your taxes.

If you export a CSV of your transactions, you can see which zip codes your students have purchased your course from. This may assist in figuring out how much state tax you may or may not need to pay.

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