YouTube AdSense Money is Now Royalty Income - Withholding Taxes?
Google is changing the characterization of AdSense revenue paid to creators.
Previously, the income was treated as nonemployee compensation and generally exempt from U.S. withholding taxes, but Google has now classified the earnings as Royalties and not compensation for personal services.
Under federal tax rules, Royalty income is subject to withholding taxes based on where the property is used.
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