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Joined: 12/21/2008
Posts: 34
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There is a thread that was in a different forum (it has since been moved to this forum where it belongs) that is discussing Zazzle's apparent requirement that all sellers who earn more than $500.00 must provide a tax number or social security number for tax purposes. I asked Zazzle about it and got this reply: I asked them to clarify since the reply was vague -- I have already filled in payment details at the link they provided and there was no place to fill in tax number or SS number. I wonder what happens to international sellers who do not have a U.S. tax number or social security number. Cafe Press does not require tax info from sellers in foreign countries and I am hoping Zazzle will follow their example.
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Groups: Member
Joined: 8/31/2009
Posts: 260
Location: Vantaa
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So what's a W-2?
Not to niggle about the little things since everything I've seen and heard so far from this place has been just ace, BUT.. the replies to emails seem to be very vague in general. I could pinpoint at least three cases right now where a shop keeper has asked for something specific to be clarified and gotten either a vague answer or an answer that doesn't address anything that was asked.
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Groups: ProSeller
Joined: 12/21/2008
Posts: 34
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A W-2 is a slip of paper with U.S. income information. I suppose if you don't have a ss or tax number it won't matter because you won't get one, and apparently you won't get paid either. I wish Zazzle would clarify.
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Groups: ProSeller
Joined: 12/21/2008
Posts: 34
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I received a reply to my request for clarification: Quote:Thank you for the email. You have completed everything you need to at this point. If Zazzle needs additional information in regrards to a royalty payment, you would then be notified by email to this email address. What's missing from this picture? Perhaps an answer to my question? I'll have to ask again...
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Groups: Member
Joined: 8/31/2009
Posts: 260
Location: Vantaa
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Minimal exposition policy?
The reply does have the distinct feeling of being directed to "average consumer" or a customer, not so much to someone who would or does do online business seriously, as a considerable source of income.
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Groups: ProSeller
Joined: 12/21/2008
Posts: 34
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I received a reply to my third inquiry, and it is clearer! Here is the question: Quote:As a seller living in a foreign country (Japan) will I be required to
supply Zazzle with a Tax ID or social security number if I make over
$600.00 a year? And here is the reply: Quote:Thank you for the email. No, you would only receive a W-2 by claiming the royalties within The United States. This is good news. However, it completely contradicts the first reply I received from them (quoted in an earlier post above) and does not actually answer the question as it was worded (I did not mention W-2 forms this time, but asked specifically about the need to supply a tax or social security number) unless the word "no" was addressing these questions.
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Groups: Member
Joined: 8/21/2009
Posts: 176
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I would think it would be a 1099 not a w2 since we are not employees. And yes, since you are working for an American company you will have to pay American taxes on the money you make. Similarly I would have to pay Japan taxes if I got paid by a Japan company.
E we need you to clarify this question!!!
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Groups: ProSeller
Joined: 12/21/2008
Posts: 34
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As you correctly stated, Zazzle is not my employer. So your second statement is puzzling since it goes in the opposite direction. I do NOT work for Zazzle or any American company.
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Groups: Member
Joined: 3/6/2008
Posts: 895
Location: Toronto, Canada
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OK well in Canada we use as T-4 if you work for someone else, anyway...we are NOT required to do this and as for my SI number no way I put that online. In Canada you file your earnings as self-employment income, they don't look as this as working for someone else and receiving a pay check, then and only then do you provide an SI number, to an employer.Even if you're just applying for a job you do not give out your SI number unless you are actually hired by that company. In Canada we are CONSTANTLY told not to give out our SI number. I read that every country is differant but I KNOW in Canada this information is not required.
~ Fit
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Groups: Member
Joined: 12/27/2008
Posts: 189
Location: Lake Geneva Region
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This policy does not make any sense in terms of tax law.
What counts is supposed to be where you are living and doing the work, not where the vehicle for selling the work is located. For anyone living outside the US - citizens or non-citizens - the money we make selling on Zazzle would be considered foreign earned income. I do not think it should be subject to U.S. taxation. Even for Americans living abroad, there is a 90,000 foreign earned income exclusion which means that you can make up to $90,000 abroad and exempt it from your income for US tax purposes (because you are paying local taxes on it). Zazzle should not be withholding or doning W-2 forms even for Americans overseas because the work we are doing to make this money is being done in our place of residence, not in the United STates. Zazzle should clarify this.
I think it is very important to clarify whether if we are making items for Zazzle in our places of residence outside the US, if that qualifies as foreign earned income. I believe it should. And it that is the case, it makes no sense at all for Zazzle to be asking for W-2 forms unless there are a lot of people making over 90,000 per annum on Zazzle (Wouldn't that be a good news story!)
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Groups: Member
Joined: 9/14/2007
Posts: 213
Location: Columbia
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I think Zazzle would send you the seller a 1099-G and a copy to the IRS if you were in the US and earning at least $600 US. As far as if you are not in the US, they should not be sending W-2 or 1099-G since those are only for US based income.
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Groups: Member
Joined: 8/21/2009
Posts: 176
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during the 2002 Olympics in SLC even the Aussies I worked with had taxes taken from them. I did not work for NBC, I was freelance, same thing here. I do not work for most of the companies I work with, but, I still have to pay taxes from the earnings I earn from them. It does not matter that you do not work for them, you earn money from them, and that is enough for you to have to pay taxes.
Now, its possible that zazzle is like ebay, and lets you decide if you want to pay taxes or not. They say its your responsibility not theirs to keep track of what you make. Either way, you have a few months to find out for sure.
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Groups: Member
Joined: 2/26/2009
Posts: 1
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antiboris wrote:during the 2002 Olympics in SLC even the Aussies I worked with had taxes taken from them. I did not work for NBC, I was freelance, same thing here. I do not work for most of the companies I work with, but, I still have to pay taxes from the earnings I earn from them. It does not matter that you do not work for them, you earn money from them, and that is enough for you to have to pay taxes. Of course, you have to pay taxes. Everyone has to pay taxes on everything they make. That's a given. The issue is TO WHOM do you have to pay taxes. You and the Aussies were apparently living in the U.S. and paying on earnings made in the U.S. So what's your point?
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Groups: Member
Joined: 8/21/2009
Posts: 176
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that, everyone who earns over 500 on zazzle has to pay US taxes, regardless of where they live, they earned money from a US company, therefore they pay US taxes. If this company was based in Japan, we would all abide by Japan rules of paying taxes from companies we earned money from.
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Groups: Member
Joined: 3/6/2008
Posts: 895
Location: Toronto, Canada
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So following that train on thought if I pay US tax where do I claim EXPENSES...that's right expenses, the monies earned from ROYALTIES is not INCOME and if it were I should be allowed to deduct expenses...starting with it costs me a hundred dollars a month just for internet connection and what about time??? Personally if I only make 500 bucks a year I am seriously in the red and therefore taxes becomes a moot point....on the other hand if I were an employee of Zazzle (an American company) or made a sizable income and could claim expenses then I'd be happy to pay US tax.
~ Fit
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Groups: Member
Joined: 9/8/2009
Posts: 10
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In similar Australian sites there are a number of questions about tax status and one is that you do the pursuit as a hobby and earn under $11,000, or as a business and you have to declare which you are under before the site will pay you anything. If you are other than a hobbyist you have to give a tax number, probably similar to a socila security number in the USA
I do not live in the USA, sell in the USA or much else. I sell on the internet via an agent who supplies international premises and stock. Zazzle. Zazzle pays tax on my income through their sites doesnt it?
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Groups: ProSeller
Joined: 7/24/2008
Posts: 10
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I've just received the following email... Quote:Hello International Zazzle Seller, We recently reviewed our records and have determined that your account is now subject to reporting to the United States Internal Revenue Service. In order to receive all pending and future Zazzle earnings, you must complete IRS Form W8-BEN, and return it to us. Download the W8-BEN and support documents here: Instructions: http://www.irs.gov/pub/irs-pdf/iw8ben.pdf Form: http://www.irs.ustreas.gov/pub/irs-pdf/fw8ben.pdf Once complete, please send the signed form back to us via email, FAX or US Mail. Email: zazzle-w8@zazzle.com FAX: 1-650-362-2199 Company Address: Zazzle.com, Inc. 1900 Seaport Blvd 4th Floor Redwood City, CA 94063 Thanks for your cooperation. - The Zazzle Team Is this real? Is the intent here to make me pay tax twice, once in the US and then again in the UK? Or is this just some sort of phishing scam attempt?
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Groups: Member
Joined: 4/23/2006
Posts: 14
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Quote:We recently reviewed our records and have determined that your account is now subject to reporting to the United States Internal Revenue Service. In order to receive all pending and future Zazzle earnings, you must complete IRS Form W8-BEN, and return it to us. I've also just received this email. What? Why would my account now be subject to reporting to the US IRS? I live and work in the UK and file an annual tax return to HMRC declaring my self-empoyed income that is liable to income tax in the UK. What's this got to do with the IRS? Zazzle need to send out some sort of clarification on this.
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Groups: Member
Joined: 3/15/2009
Posts: 5
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Tax Alert!
Just received an email from Zazzle that says...
"In order to receive all pending and future Zazzle earnings, you must complete IRS Form W8-BEN, and return it to us."
IRS Form W8-BEN says:
Purpose of form. Foreign persons are subject to U.S. income tax at a 30% rate on income they receive from U.S.
If this is true.. IT SUCKS!
Add to that: the rapid decline of the U.S. Dollar and the combined result is incomes are roughly cut in two for anyone overseas.
How on earth can Uncle Sam levy a TAX on FOREIGN operators who ALREADY PAY TAX on their income in their respective home countries?
This stinks like another Get Shafted by CafePress moment!
What are Zazzle doing having a so-called 'International Presence' with sites .CA .AU .DE (and more) if EVERYONE will have to hand over 30% of any income to Obama & Geitner's greedy cash-burning hands?
If true, Redbubble, Skreened, Spreadshirt & Printfection are looking good.
Hell, I'll probably invest in a DTG setup and start printing my own!
:-)
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Groups: ProSeller
Joined: 12/8/2006
Posts: 6
Location: Sneek
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Also received this email, and am very worried. As a citizen of the Netherlands, I pay taxes on my income - including income from Zazzle - to the Dutch government. Since when do I owe the U.S. government taxes? I thought this was a phishing email until I came here.
Zazzle, what the heck is going on? We need answers!
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