Soundrop is required to collect tax information from artists who receive payments. The tax form you need to complete, whether taxes are withheld from your payments, and which year-end tax documents you receive depend on your tax status and location. You can submit and update your tax information through your Soundrop account.
Soundrop can't provide individual tax advice. If you're unsure about your tax obligations or how to report your Soundrop income, consult a qualified tax professional.
What tax form do I need to submit?
The form you need depends on whether you're a U.S. or non-U.S. taxpayer.
- U.S. taxpayers: Complete Form W-9.
- Non-U.S. individuals: Generally complete Form W-8BEN.
- Non-U.S. businesses or other entities: You may need another version of Form W-8, such as W-8BEN-E, W-8IMY, W-8ECI, or W-8EXP.
Soundrop's payment system will guide you through submitting the appropriate tax information for your account. You may also be asked to provide a Tax Identification Number (TIN) or Foreign Tax Identification Number (FTIN).
When should I update my tax information?
Update your tax information if any of the information you previously provided changes, such as your address or tax status. You can't edit a previously submitted W-8 or W-9. Instead, submit a new form through your Soundrop account to replace the previous one.
Most W-8 forms expire at the end of the third calendar year after they're signed. Soundrop will notify you when you need to submit a new form. To ensure your information is available for year-end tax reporting, submit any required updates by December 31.
Will Soundrop withhold taxes from my payments?
U.S. taxpayers
U.S. taxpayers generally aren't subject to U.S. tax withholding when Soundrop has valid tax information on file.
Non-U.S. taxpayers
Some U.S.-source income paid to non-U.S. taxpayers may be subject to U.S. tax withholding.
The amount withheld depends on factors including the type and source of the income, the tax information you've provided, and whether you're eligible for benefits under a tax treaty between your country and the United States.
Make sure your tax information is complete and up to date so that any applicable withholding rate can be determined correctly.
Soundrop can't provide individual tax advice. If you have questions about how U.S. withholding rules or a tax treaty apply to you, consult a qualified tax professional.
What year-end tax form will I receive?
The tax document Soundrop provides depends on your tax status and the payments you received.
Form 1099-MISC
U.S. citizens and residents may receive Form 1099-MISC if they received more than $10 in tax-reportable payments from Soundrop during the year. The amount reported is based on payments actually made to you during the year, rather than the date the underlying royalties were earned.
Eligible forms are electronically delivered or postmarked by January 31 of the following year. Some tax classifications generally don't receive a Form 1099 unless backup withholding applies.
Form 1042-S
Form 1042-S reports U.S.-source income paid to non-U.S. taxpayers and any associated U.S. tax withholding. If you've submitted a Form W-8 and received at least one tax-reportable payment from Soundrop, you'll receive a Form 1042-S for the following year. Eligible forms are electronically delivered or postmarked by March 15.
Where can I download my tax statement?
You can download your available year-end tax documents from the Payout Info section of your Soundrop account.
What if I'm a nonprofit organization?
Nonprofit organizations still need to submit tax information so Soundrop can verify their tax status. When completing your tax information:
- Select Other as your tax classification.
- Provide an EIN or SSN for IRS verification.
Tax-exempt organizations generally won't receive a Form 1099 unless backup withholding applies.