More details for Creators earning money from IMVU

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The Earn Money Program is now part of our new VIP Tiers program! Learn more about this awesome new feature here! 

This article is adapted from the original forum entry dated April 07, 2015, with updated details.

Notes:

• The information provided here is not intended as tax advice and may not be used to support tax positions. We recommend that you consult with a tax adviser for any tax guidance.

• Your decision to participate in the "Earn Money" program may or may not have tax implications based on your tax jurisdiction (location) and your total income.

If an IMVU Creator elects to earn money (instead of IMVU Credits) for products sold in the Catalog, this triggers an account verification process. The process is detailed here.

Remember: Starting July 1, 2023, all Earn Money Creators, including Grandfathered Creators, will require either Platinum or Diamond VIP to be in the Earn Money Program and receive cash payouts.

Creators will be able to link three Grandfathered Creator accounts together under one VIP subscription. For more details, see this article. 
 
This requirement does not affect Grandfathered Creators who are subscribed to legacy VIP (from before Tiered VIP launched).

Once your VIP subscription expires, your earning distribution will automatically switch to Credits-Only.

One of the steps in the process is supplying us with your tax-related information (requirements vary depending on the country you reside in). IMVU recognizes these steps can be time-consuming and possibly tedious; however, these steps are mandated by the tax jurisdiction in which IMVU Official. operates. As such, we can offer no exceptions or exemptions from this multi-step process --- it is prescribed to IMVU and not one we designed. Thanks in advance for helping us meet the requirements placed upon IMVU Official.

This article has some information that will assist you in completing the process in order to request payouts if you chose to earn money for your product sales. You need to submit all needed documents and/or other required information via a Creator Ticket. Also, when your account is pending verification, you will continue to see a reminder on the payout page to submit your documents --- please disregard that notice if you have already sent in the information.

Tax withholding requirements

Tax withholding and specific requirements vary based on whether you are a U.S. person or non-U.S. person.

According to the IRS, for U.S. federal tax purposes, a U.S. person includes, but is not limited to:

• An individual who is a U.S. citizen or U.S. resident alien,

• A partnership, corporation, company, or association created or organized in the U.S. or under the laws of the U.S.

• Any estate (other than a foreign estate), or

• A domestic trust (as defined in Regulations section for Forms W-9 not required to be signed 301.7701-7)

Process for a U.S. Person

If you are a U.S. person you must submit a W-9 form to us in order to get cash payouts. IMVU will submit your tax information to the Internal Revenue Service (IRS) to validate your tax ID information. If U.S. tax information does not exactly match IRS records, an IMVU representative will contact you to get further information.

Once you have provided IMVU with valid tax identity information, tax withholding will not be deducted from your payouts. IMVU will report to the IRS your cash earnings for the prior tax year on the Form 1099-MISC. We issue these Forms on or before January 31 each year.

If your tax information can not be verified, your account will no longer be eligible for earning cash payouts. All your future product sales will earn Credits.

REMINDER: The Terms of Service you previously agreed to explicitly forbids the sale of IMVU Credits without IMVU’s written consent.

Process for a non-U.S. Person

If you are a non-U.S. person IMVU will withhold tax from your payouts at the statutory rate of 30% (based the gross payout amount) UNLESS you claim tax treaty benefits between your country of residence and the U.S. To do that, you will have to provide a Tax Identification Number (TIN). If you have a U.S. TIN (ITIN for individuals, EIN for non-individuals), you must provide it. If you do not have a U.S. TIN and the tax authority in your country of residence issues an income tax identification number, you may use it to claim treaty benefits.

You can claim tax treaty benefits by submitting a completed W-8BEN form to us.

Non-U.S. persons may be eligible for a reduced rate of U.S. tax withholding if their country of permanent residence has an income tax treaty with the United States. Find the list of tax treaty countries and applicable rates on pages 53 and 55 of IRS Publication 515, in the "Copyrights" column. Please check your form to ensure your rate of withholding tax is consistent with the applicable rates specified on pages 53 and 55 of IRS Publication 515 if you are claiming treaty benefits. If the rate does not match, you may need to review your previous inputs.

To qualify for reduced withholding, you must enter an income Tax Identification Number (TIN) in the W-8BEN. If you are a non-U.S. person and your income is effectively connected with a U.S. trade or business, you must provide a U.S. TIN (ITIN or EIN for individuals; EIN for non-individuals). If you are a non-U.S. person that provides a U.S. TIN, IMVU will submit your tax information to the Internal Revenue Service (IRS) to validate your tax ID information. If you have a U.S. TIN, you must provide this number. If you do not possess a U.S. TIN, you may enter the income tax identification number issued to you by the tax authority in your country of residence. If your country does not issue a TIN used for income tax purposes, you may apply for a U.S. TIN by following the instructions found here.

If you elect to not participate in the Earn Money program, all your future product sales will earn Credits.

REMINDER: The Terms of Service you previously agreed to explicitly forbids the sale of IMVU Credits without IMVU’s written consent.