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More details for Creators earning money from IMVU

 
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Varsha 18+ Age Verified

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PostPosted: Mon Apr 06, 2015 10:43 am    Post subject: More details for Creators earning money from IMVU Reply with quote

Reminders:

1] You may not have legal discussions in IMVU’s forums.

2] The information provided here is not intended as tax advice and may not be used to support tax positions. We recommend that you consult with a tax adviser for any tax guidance.

3] Your decision to participate in the "Earn Money" program may or may not have tax implications based on your tax jurisdiction (location) and your total income.


If an IMVU Creator elects to earn money (instead of IMVU Credits) for products sold the Shop, this triggers an account verification process. The process is detailed here.

One of the steps in the process is supplying us with your tax-related information (requirements vary depending on the country you reside in). IMVU recognizes these steps can be time-consuming and possibly tedious; however, these steps are mandated by the tax jurisdiction in which IMVU Inc operates. As such, we can offer no exceptions or exemptions from this multi-step process - it is prescribed to IMVU and not one we designed. Thanks in advance for helping us meet the requirements placed upon IMVU Inc.

Below is some information that will assist you in completing the process in order to request payouts if you chosen to earn money for your product sales.

You need to submit all needed documents and/or other required information via our Help Center. Please make sure you select the “Creator - Earning Money” category for your help tickets when you do so.

**When your account is pending verification, you will continue to see a reminder on the payout page to submit your documents - please disregard that notice if you have already sent in the information.

Tax withholding requirements:

Tax withholding and specific requirements vary based on whether you are a U.S. person or non-U.S. person.

According to the IRS, for U.S. federal tax purposes, a U.S. person includes, but is not limited to:
--An individual who is a U.S. citizen or U.S. resident alien,
--A partnership, corporation, company, or association created or organized in the U.S. or under the laws of the U.S.
--Any estate (other than a foreign estate), or
--A domestic trust (as defined in Regulations section for Forms W-9 not required to be signed 301.7701-7)

Process for a U.S. Person

If you are a U.S. person you must submit a W-9 form to us in order get cash payouts. IMVU will submit your tax information to the Internal Revenue Service (IRS) to validate your tax ID information. If U.S. tax information does not exactly match IRS records, an IMVU agent will contact you to get further information.

Once you have provided IMVU with valid tax identity information, tax withholding will not be deducted from your payouts. IMVU will report to the IRS your cash earnings for the prior tax year on the Form 1099-MISC. We issue these Forms on or before January 31 each year.

If your tax information can not be verified, your account will no longer be eligible for earning cash payouts. All your future product sales will earn Credits.

Reminder: the Terms of Service you previously agreed to explicitly forbids the sale of IMVU Credits without IMVU’s written consent.


Process for a non-U.S. Person


If you are a non-U.S. person IMVU will withhold tax from your payouts at the statutory rate of 30% (based the gross payout amount) UNLESS you claim tax treaty benefits between your country of residence and the U.S. To do that,you will have to provide a tax identification number (TIN). If you have a U.S. TIN (ITIN for individuals, EIN for non-individuals), you must provide it. If you do not have a U.S. TIN and the tax authority in your country of residence issues an income tax identification number, you may use it to claim treaty benefits.

You can claim tax treaty benefits by submitting completed W-8BEN form to us.

Non-U.S. persons may be eligible for a reduced rate of U.S. tax withholding if their country of permanent residence has an income tax treaty with the United States. Find the list of tax treaty countries and applicable rates on pages 53 and 55 of IRS Publication 515, in the "Copyrights" column. Please check your form to ensure your rate of withholding tax is consistent with the applicable rates specified on pages 53 and 55 of IRS Publication 515 if you are claiming treaty benefits. If the rate does not match, you may need to review your previous inputs.

To qualify for reduced withholding, you must enter an income tax identification number (TIN) in the W-8BEN. If you are a non-U.S. person and your income is effectively connected with a U.S. trade or business, you must provide a U.S. TIN (ITIN or EIN for individuals; EIN for non-individuals). If you are a non-U.S. person that provides a U.S. TIN, IMVU will submit your tax information to the Internal Revenue Service (IRS) to validate your tax ID information. If you have a U.S. TIN, you must provide this number. If you do not possess a U.S. TIN, you may enter the income tax identification number issued to you by the tax authority in your country of residence. If your country does not issue a TIN used for income tax purposes, you may apply for a U.S. TIN by following the instructions found here: Applying for a U.S. TIN (Taxpayer ID Number).

If you elect to not participate in the Earn Money program, all your future product sales will earn Credits.

Reminder: the Terms of Service you previously agreed to explicitly forbids the sale of IMVU Credits without IMVU’s written consent.
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Varsha 18+ Age Verified

Varsha <a href='/age_verify/index/'><img src='/common/img/icons/age_verified_35x18.gif' width='35' height='18' alt='18+ Age Verified'/></a> 's page


Joined: 01 Feb 2010
Posts: 11465
Location: USA

PostPosted: Tue Jan 05, 2016 11:53 am    Post subject: Reply with quote

Update on January 5, 2016:

As per our original post, IMVU will report to the IRS your cash earnings for the prior tax year on the Form 1099-MISC. We issue these Forms on or before January 31, 2016.

Creators in the Earn Money program will be mailed the forms to the address they provided as part of the account verification process.

If a Creator is earning money on multiple accounts, we will send a combined form based on their tax ID number. If such a number was not provided (some foreign individuals did not need to) then we will aggregate using the paypal address used for those accounts.

Thank you.
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Varsha 18+ Age Verified

Varsha <a href='/age_verify/index/'><img src='/common/img/icons/age_verified_35x18.gif' width='35' height='18' alt='18+ Age Verified'/></a> 's page


Joined: 01 Feb 2010
Posts: 11465
Location: USA

PostPosted: Fri Jan 29, 2016 2:30 pm    Post subject: Reply with quote

Update on January 29, 2016:

1099 forms for US-residents have been mailed and they should be received by end of next week if not before.

1042 forms for non-US Creators will be sent before March 31st, 2016 (the required date to send these out).

EDITED: Fixed the date from 2015 to 2016
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ShannonMac VIP Club Member
IMVU Staff
IMVU Staff
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Joined: 31 Aug 2016
Posts: 1317
Location: USA - CA

PostPosted: Mon Jan 30, 2017 5:08 pm    Post subject: Reply with quote

Update on January 30, 2017:

As per our original post, IMVU will report to the IRS your cash earnings for the prior tax year on the Form 1099-MISC. We issue these forms on or before January 31, 2017.

Creators in the Earn Money program will be mailed the forms to the address they provided as part of the account verification process.

If a Creator is earning money on multiple accounts, we will send a combined form based on their tax ID number. If such a number was not provided (some foreign individuals did not need to) then we will aggregate using the paypal address used for those accounts.

1099 forms for US-residents should have now received their digital copies of their 1099 using a service called E-File Magic. If you do not receive your hard copy of your 1099 form by Friday of next week (February 10, 2017) please let us know.

Please bear in mind that your digital 1099 form will have the same information as your hard copy 1099 form.

1042 forms for non-US Creators we shall update here when we have more information for you.

A copy from the Finance Team about E-File Magic is listed below.

Thank you.

"Hello Creators,

We have prepared your year-end 1099 Tax forms using a secure service called E-File Magic. We have mailed this form to you via the mailing address you have provided, and also utilized the feature of sending a digital copy of this form to the email address you have provided on your profile. This is secure and legitimate.

Regards,

IMVU Finance"

_________________
Shannon Mac

IMVU Senior Community Manager of Customer Care & Education
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