If you have any questions about your rewards being taxable or if you have any other tax-related questions, we've created this FAQ page for you!
Why am I asked to complete a Tax Form for cashouts?
The Company must comply with tax laws that apply to it as a payor. For example in the US, the Company must report certain payments to the payee and the IRS.
What happens if I do not complete the Tax Form?
You will not receive your payment(s) until you provide accurate and complete information.
Are my rewards taxable?
Rewards may be taxable in your jurisdiction. We recommend that you consult with a tax professional in your jurisdiction to determine the taxability of your rewards. Payoneer nor the Company provide individual tax advice.
Will my rewards be reported as income to the Internal Revenue Service (IRS) or other taxing authority?
If your rewards meet the IRS requirements for reporting, your income will be reported to the IRS. Note, your rewards may be taxable even if you did not receive a Form 1099-MISC or other tax reporting form. We recommend that you consult with a tax professional in your jurisdiction to determine the taxability of your rewards.
I received a Form 1099-MISC. What is Form 1099-MISC?
The IRS Form 1099-MISC is sent both to the payee and the IRS to report certain payments made by the Company to the payee during the calendar year. The IRS does have a reporting threshold for Form 1099-MISC. If your rewards during the calendar do not meet the threshold for reporting, you will not receive a Form 1099-MISC.
Note, your rewards may still be taxable to you even if you did not receive a Form 1099-MISC or other tax reporting form. We recommend that you consult with a tax professional to determine the taxability of your rewards.
Forms W-9 and W-8BEN
What are the W-9 and W-8 series forms?
These forms, issued by the IRS, are used by companies to collect information regarding your identification and tax status. The information you supply in the form is sent directly to the Company and not to the IRS. The Company needs this information in order to know how much tax (if any) to deduct from your payments and in order to submit any relevant tax forms to the IRS on your behalf.
Should I complete a W-9 or W-8BEN?
If a US person (citizen or resident), complete Form W-9.
If a non-US person, complete Form W-8BEN.
Why am I required to complete a W-8 as a non-US citizen or resident?
As a Payor of reward payments, the Company must comply with tax reporting and withholding laws. U.S. tax laws require the Company to verify if the payee is a US citizen or resident, or a non-US citizen or resident. Your completed Form W-8 provides the evidence required to verify that you are a non-US citizen or resident.
After submitting my W-9 or W-8BEN Form, I realized I made a mistake. How do I fix this?
To submit a new W Form, please follow these steps:
1. Sign in to Payoneer.
2. In the upper right corner click on the profile icon.
3. Click on "Settings."
4. Click on "Tax Forms."
5. Locate the relevant submitted tax form and select it.
6. In the pop-up window, choose "Edit". This will redirect you to the Payoneer Tax Forms page.
7. Select the relevant tax form and complete it with the correct information. If you are unsure which form to select, click the link for "Use Wizard". The Tax Wizard will help guide you in the right direction.
When do I need to submit a new W-9 or W-8BEN Form?
You need to submit a new form if one of the following occur:
1. Your legal name has changed (for example, due to marriage).
2. Your country of residence has changed.
3. You receive an email from Payoneer stating the form has expired.
I submitted my W Form using the online wizard and shortly after received another email asking me to submit my W Form. Why do I need to re-submit my form?
If you received a new email, your W Form was rejected because of one or more of the following reasons:
1. There is a mismatch between the details you provided to the Company and in the form you submitted.
2. The Social Security number entered in the form does not match that of the person submitting the form.
3. Your name was misspelled.
4. A middle initial or middle name was omitted.
5. Your name doesn’t exactly match your Social Security card. For example, you used your nickname.
I need help in filling out the W Form.
Please consult a tax professional.