IRS Tax Withholding Rate Suddenly Increased to 30% - Anyone Else?

KrystianWojtarowicz · 2025-04-07T12:28:22+00:00

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Hey everyone,

I just noticed that my IRS withholding tax rate on Udemy suddenly jumped from 10% to 30%, even though I didn’t submit any new tax forms or make any changes.

Has anyone else experienced this recently?

Could it be an error on Udemy's side or something related to U.S. tax rules changing?

Appreciate any insights – thanks in advance!

- Krystian Wojtarowicz

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Comments

Kiran

Yes i too faced this issue. I submitted new form. It is still under review.

KrystianWojtarowicz

@Kiran after submitting a new form, 30% reappeared, something is definitely going on.

rasu84

I don't see any such changes.

Kiran

Whats the status? Untill it is approved it shows default 30% I guess. Once it is approved u may see the reduced one.

KrystianWojtarowicz

@Kiran for me status is approved and it shows 30%

Kiran

Did u submit new one? Mine is still showing under review

KrystianWojtarowicz

@Kiran I did, still the same

peter_dalmaris

This is what is showing for me:

"Your tax documentation has been approved. Based on your current status, your IRS withholding tax rate is 30%. Your tax form will remain valid through 2027-12-31. "

I have submitted a new application to try and fix this.

Kiran

For me it is in 'under review' status since 3 days and future payments blocked

lightlitebug

I was the same as you, my tax rate suddenly jumped from 10% to 30%.

ElianaC

Hi @lightlitebug, @Kiran, @peter_dalmaris @KrystianWojtarowicz, Thank you for raising this topic! If you've submitted a new tax form, the withholding rate will be based on the information provided in that form. I recommend that each of you reach out to the support team, as they can provide you with detailed information regarding your account. You can contact the team by accessing the Help Center article here by clicking the "contact us" button.

peter_dalmaris

Thank you @ElianaC , I have resubmitted my tax form, and contacted the support team. A bit stressful, considering the timing of this increase.

peter_dalmaris

Hi all, just coming back here with an update. A few days after resubmitting my tax form, my withholding went back to the original 5%. I found that the correct amount should be 0% due to a tax treaty between Australia and the US, so I have submitted my refund application to the IRS. Given the chaos right now in US federal services, I don't expect anything back, but I thought I'd give it a try anyway.

KrystianWojtarowicz

Hello everyone, still no information from Udemy support - they say they are waiting for information from their tax partner, and it has been over 50 days now. @peter_dalmaris @lightlitebug @Kiran do you have any updates?

lightlitebug

Hey, I’ve been dealing with the same issue — just wanted to share where things stand on my end.

I’m a South Korean resident and had been receiving the correct 10% treaty rate for years without any trouble. But earlier this year, my withholding rate suddenly jumped to 30%, even though I hadn’t changed anything.

I re-submitted my W-8BEN-E form and made sure to select “No LOB article in treaty,” which is the correct option for South Korea, since the U.S.–Korea tax treaty doesn’t include an LOB article. (I even confirmed this with the tax professional.)

At first, I saw a confusing warning message — "Treaty222" — when selecting that option, so I tried other LOB options just to get through the form, which I now realize was a mistake. Eventually, I figured out that I could ignore the warning and still proceed with “No LOB article in treaty.”

So I submitted the correct form a few days ago.
For a while, the form didn’t show as fully active — it seemed to be in a pending or review status — which gave me some hope.
But as of today, the status is “active,” and my withholding rate is still 30%.

So unfortunately, the re-submission did not fix the issue automatically. I’ve now contacted Udemy Support and asked them to manually review the form and apply the proper 10% rate based on the treaty.

If you’re in the same situation, I’d definitely recommend reaching out to Support too. Seems like the system might not be handling the treaty claim correctly on its own.

Will update again if anything changes!