Please note: This material has been prepared for informational purposes only and does not constitute legal or tax advice. CD Baby cannot guarantee the accuracy of this information. Always consult a qualified tax professional regarding their specific tax circumstances.
Tax Withholding Table
The tables below show examples of different types of music income and how they may be reported or subject to withholding for U.S. and non-U.S. taxpayers.
Keep in mind that not all music income types are reported at year-end for royalty purposes. It’s common for the total shown on your 1099 or 1042-S form to be less than your total CD Baby payments for the year.
| U.S. Based Artist | |||
| Listen/Purchase Location | Subject to Withholding | Subject to End of Year Reporting for Royalties (>$10) | |
| Streaming (e.g., Spotify streams) | US | No (if TIN provided) | Yes, Form 1099-MISC |
| Rest of the world | No (if TIN provided) | Yes, Form 1099-MISC | |
| Automated Claiming (Social Video Monetization) |
US | No (if TIN provided) | Yes, Form 1099-MISC |
| Rest of the world | No (if TIN provided) | Yes, Form 1099-MISC | |
| Downloads (pass-through) |
US | No | No |
| Rest of the world | No | No | |
| Physical product (pass-through) |
US | No | No |
| Rest of the world | No | No | |
| Non-U.S. Based Artist | |||
| Listen/Purchase Location | Subject to Non-U.S. Resident Withholding | Subject to End of Year Reporting for Royalties | |
| Streaming (e.g., Spotify streams) | US | Yes, but treaty relief may apply | Yes, Form 1042-S |
| Rest of the world | No | No | |
| Automated Claiming (Social Video Monetization) |
US | Yes, but treaty relief may apply | Yes, Form 1042-S |
| Rest of the world | No | No | |
| Downloads (pass-through) |
US | No | No |
| Rest of the world | No | No | |
| Physical product (pass-through) |
US | No | No |
| Rest of the world | No | No | |
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