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Tax withholding rate doesn't change after tax interview

A topic by TwoFaceGames created Apr 05, 2022 Views: 683 Replies: 12

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Hi.

I finished my tax interview a couple of days ago. As I live in Germany, I expected my tax withholding rate to be set to 0 %. However, it stayed at 30 % even days after the tax interview was completed. I also did the tax interview several times because at first I thought I did something wrong, but the result remained the same after several tries. I've already written to the support, but so far haven't gotten an answer. Does anyone know how long it takes for the tax interview to be accepted and the tax withholding rate to be updated properly? I somewhere read this should happen pretty much instantly, so that's why I'm wondering.

Thanks for your time,

TwoFaceGames

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leafoPinned ReplyAdmin2 years ago (2 edits) (+2)

We’re in the process of making some changes that might delay the calculation of the final withholding rate. We are likely setting it up to defer tax information validation until you’ve requested a payout (or potentially first item sold). At that time validation will commence and everything will update accordingly.

If you’d like us to process it ahead of time we may have a way you to manually request it. We will need to finalize these changes first though.

If a payout does get paid with the incorrect withholding rate it can be corrected, but it must be done so as soon as you notice as it may be locked in if you wait past when it is filed with the IRS.

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TwoFaceGames2 years ago

Thanks for the kind reply, leafo. Yes, it would be awesome if you could process it ahead of time.

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SixSausageSunday2 years ago

Many thanks for the info Leafo, if I could volunteer my two pennies though that does sound like quite a confusing system that may lead to more of these posts as opposed to just showing the tax status instantly. Thanks again.

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risingtail2 years ago

I too would like a way to manually request it. It makes me uncomfortable that it says 30%, when the tax interview itself in fact said 0%.

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TwoFaceGames2 years ago

It immediately switches to 0 % as soon as you request payout. I did this in the meantime. Nothing to worry about. :)

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SixSausageSunday2 years ago

Same here! (UK)

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Afloof.devModerator2 years ago

Hey there,

Have you made sure to add your foreign tax ID code during the interview? I’m in the UK and I have 0% withholding rate.

Hope that helps

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SixSausageSunday2 years ago

Thanks for replying, after some (admittedly quick) googling I was under the impression that my national insurance number would serve as a tax ID, is this not the case?

I've currently switched to individual payouts until I've got it sorted. Many thanks.

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Afloof.devModerator2 years ago

I was under the impression that my national insurance number would serve as a tax ID, is this not the case?

That should be correct, and you can use the national insurance number as a foreign tax ID. Judging by the comment made below by leafo, sounds like the tax withholding rate might be calculating at the time you request a payout, so if you’ve provided that already, it might not show 0% instantly.

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Afloof.devModerator2 years ago (2 edits)

Did you give your Foreign Tax ID code? At some point in the process it asks for that if you don’t live in the US.

I live in the UK and had to supply that for my tax withhold rate to become 0%.

Update: See leafo’s comment, this is currently being worked on so the change might not be instant for the time being.

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TwoFaceGames2 years ago (1 edit)

Hi. Yes, I entered my foreign tax ID there. However, there was no instant change in the tax withholding rate for me.

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Afloof.devModerator2 years ago(+1)

See leafo’s comment below, turns out this is being worked now, so the withholding rate might not happen instantly. Hope everything is resolved at the end :)

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