Tax Form instructions for Canadian instructors

Ilianared
Ilianared Posts: 4 researcher rank
in Introductions

Hi there,

Does any Canadian instructor knows if as Canadians should say yes to:

Special Rates and Conditions?

Thanks!

Comments

  • ElianaC
    ElianaC Posts: 5,344 Udemy rank

    Hi @Ilianared
    I'll suggest you reach out to instructorsupport@udemy.com they will be glad to provide you more details.

    Hope this helps!

    Eliana

  • ardit
    ardit Posts: 75 storyteller rank

  • TTaylor
    TTaylor Posts: 10 traveler rank

    I sent an email to inquire about this, to my surprise, they told me my rate was 0% but I see a 30% in my account.

    I've sent them another email and even resubmitted my form. I'm not sure what's going on but I don't believe that I should be subject to a 30% withholding rate.

    I will be contacting the IRS to confirm in the morning..

  • Ilianared
    Ilianared Posts: 4 researcher rank

    I haven't replied yet... I'm confused :(

  • Ilianared
    Ilianared Posts: 4 researcher rank

    Thanks for sharing! I believe this will help many confused instructors :)

  • TTaylor
    TTaylor Posts: 10 traveler rank

    Just an update,

    The Udemy support rep who helped me was awesome..

    She listed all of the items I may have done in error and requested that I re-submit and wait..

    Within 24 hours, everything was resolved..

    For anyone struggling with this, I recommended that you contact Udemy directly. They're all ready and willing to help!

  • ardit
    ardit Posts: 75 storyteller rank

  • Ilianared
    Ilianared Posts: 4 researcher rank

    Thanks for the update!

    When you say 0% was applied for you is because every case can be different?

    Thanks again!

  • Mike324
    Mike324 Posts: 21 traveler rank

    Hello,

    I am a Canadian instructor also. Can you tell me the answer to this yes or no question please? Thank you, Mike

  • Mike324
    Mike324 Posts: 21 traveler rank

    Hello,

    I am a Canadian Instructor also. Can you be so kind as to tell me how you answered the yes or no question to Special Rates and Conditions. Thank you, Mike

  • DainaMigliore
    DainaMigliore Posts: 2 observer rank

    Did you find the answer to this question yet? I am wondering the same thing.

  • DainaMigliore
    DainaMigliore Posts: 2 observer rank

    I have the same question. Did you ever get the answer to your question. I’ve reach out to support but it’s been weeks and they haven’t gotten back to me.

  • Mike324
    Mike324 Posts: 21 traveler rank

    To my fellow Canadian instructor Daina: After years of checking off the “no” box and having zero taxes taken off, suddenly there was a change in the fall of 2022 and 30% of income was being withheld.

    After three weeks of work that included countless emails to Udemy Support, and multiple incorrect re-submissions, it was finally a Udemy instructor on YouTube that provided the answer to having my tax withholding reset to zero.

    You should note that Udemy Support will not take you very far down this solution path as I can only guess that there are liability issues that they are instructed to avoid. The suggestions they provide will not give you a complete answer. There must be a better way for Udemy Support to better address this in the future.

    Thanks to the Udemy instructor’s tutorial on YouTube, this is what finally worked for me. It may or may not work for you.

    I learned that the Canada tax treaty with the US is not across the board 0’s - Heavy Equipment and Television must pay 10% royalties. Therefore I had to go beyond the basic treaty on the W-8BEN and select “yes” to Special Rates and Considerations. Then I had to find the Tax Treaty and then cite the article and specifically copy and paste the article with the following two paragraphs.

    ARTICLE XII Royalties

    1. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that State; but if a resident of the other Contracting State is the beneficial owner of such royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.

    1. Notwithstanding the provisions of paragraph 2, copyright royalties and other like payments in respect of the production or reproduction of any literary, dramatic, musical or artistic work (but. not including royalties in respect of motion picture films and works on film or videotape for use in connection with television) arising in a Contracting State and beneficially owned by a resident of the other Contracting State shall he taxable only in that other State.

    Five days later it changed and is valid for three years.

    I hope this helps. For more clarification, I suggest searching YouTube and you will find this very helpful instructor. Mike



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