Below are common questions about two tax forms you may receive from GRIN depending on how you set up your payouts. You will receive either:
A 1099-NEC tax form: You’ll receive this form if you’re a U.S. resident. You should have specified if you’re a U.S. person while filling out your W-9 in Setting up payouts as a U.S. resident. You can learn more about this form with the IRS’ article About Form 1099-NEC, Nonemployee Compensation.
A 1042-S tax form: You’ll receive this form if you’re a non-U.S. resident. You should have specified if you’re a non-U.S. person while filling out your W-8BEN in Setting up payouts as a non-U.S. resident. You can learn more about this form with the IRS’ article About Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding.
You can learn what you need to do to receive these forms, where you can find them, tax withholdings, and what you can do to update information such as invalid Taxpayer Identification Numbers (TINs) in this article.
In this article (select to open)
Why did I receive a 1099/1042 tax form?
Whether you receive a 1099 or a 1042 tax form depends on if you elected to have taxes withheld on your W-9 or W-8BEN when you set up your tax information with GRIN.
If you did elect to have taxes withheld on your W-9 or W-8BEN, then you will always receive a 1099 or a 1042 form.
If you did not elect to have taxes withheld, then you will only receive a 1099 or 1042 if you meet both of the following conditions:
You've made at least $600.00 USD in the tax year through GRIN (earnings only include payments made within the platform, not offline payments or product gifting), AND
You did not elect as one of the following tax classifications:
LLCs that elect treatment as an S-Corporation or C-Corporation
How will I get my tax form?
This is based on how you chose to receive your tax forms while filling out your W-9 or W-8BEN. They will be sent to either:
The mailing address you supplied when filling out your W-9 or W-8BEN, or
The email you provided when filling out your W-9 or W-8BEN
When will I receive my 1099/1042 form?
U.S. residents receive 1099s in January. Non-U.S. residents receive 1042s in March.
Does the 1099/1042 form come from brands or GRIN?
All 1099s or 1042s will come from GRIN.
Can I view my 1099/1042 on my Live Site?
Yes, any tax forms that you've received should appear in your Live Site's Payouts tab underneath where you originally filled out your W-9 or W-8BEN.
Will I receive multiple tax forms if I work with multiple brands?
No, you'll only receive one 1099 or 1042 per tax year from GRIN regardless of how many brands you're are working with.
Do brands receive a copy of my tax form?
No. 1099s and 1042s are private tax information, so brands cannot get a copy.
Why are taxes are withheld for my payments?
Your taxes are withheld for your payments for one of two possible reasons:
Your prior selections when you filled out your tax form. Depending on how you filled out your tax forms and what you elected, the IRS will send you a 1099 or a 1042. See Why did I receive a 1099/1042 tax form? for more details.
You provided an invalid Taxpayer Identification Number (TIN), address, or country of residence while filling out your tax form. The IRS requires you fill out your tax forms with valid information. GRIN then sends that tax form to the IRS to validate the information you provided. If the IRS finds any information inaccurate, such as an invalid TIN or address, we’ll send you an email to update your W-9 or W-8BEN through the payment portal. Once you receive that notification, you will have 30 days before you may be subject to backup tax withholdings by the IRS because you have incorrect information.
If you don’t have a valid tax form, you’ll automatically be subject to a 24% backup tax withholding if you are a U.S. resident or a 30% backup tax withholding if you are a non-U.S. resident. You can learn more about backup withholdings with the IRS’ article.
You can resubmit a new tax form with updated information by going to your Live Site > Payouts tab or from GRIN’s payment portal here: https://grin.portal.trolley.com/. See Updating your tax form for more details.
Unfortunately, any tax withholdings that were already held aren’t refundable. This is a requirement from the IRS. However, at the end of each year when you file your taxes, you can work with your tax advisor to find out what tax obligations you may have or if you are eligible for a refund from the IRS or your local tax authority.
Why is my tax form considered invalid?
The IRS validates the information you provide in your tax form with what it has on file for you, including your name, address, and taxpayer identification number (TIN). The IRS verifies this information theselves and lets GRIN know if they found it valid or not.
If your tax form is considered invalid, you may be subject to a 24% backup tax withholding as a U.S. resident or a 30% backup tax withholding as a non-U.S. resident. GRIN will send you an email if the IRS finds that you submitted an invalid tax form. Once you receive that email, you have 30 days to update your tax forms so you are no longer subject to any backup tax withholdings. Here are a few common reasons why your tax form may have come back as invalid:
Always ensure the information you provide on your W-9 or W-8BEN matches what was provided to you by the IRS or your local tax authority. If you have any questions, we recommend getting in touch with a tax advisor.
You submitted the wrong Taxpayer Identification Number (TIN). The first thing to check is to make sure you submitted the right TIN. A TIN can be a number of different identification numbers that are unique to your situation. You can learn about what is considered a TIN with the IRS’ help article.
You filed under the wrong classification. If, for example, you filed as an LLC but did not provide the correct business name or TIN for that LLC, then your tax form will be considered invalid.
You used the wrong name. If you used a nickname or a shortened version of your name instead of your legal name or whatever name the IRS has on file when filling out the form, then your tax form will come back as invalid even if you provided a correct TIN.
You provided the wrong address. If you entered your address incorrectly, or if you provided an address that doesn't match up with your reported residence (for example, you identified yourself as a U.S. resident on your tax form, but then provided an address based outside of the U.S.), then your tax form will be considered invalid.
Because all this information is sensitive, we can’t access any of this information that the IRS has (such as your business or personal address, your TIN, your legal name, and more). The IRS only tells us if they found the tax form invalid or not. Unfortunately, GRIN won’t be able to tell what the exact source of the conflict was in your tax form.
If you’re confident that you submitted all the correct information and your tax form is still coming back as invalid, then consult with the IRS or a tax professional to cross-reference your information. GRIN is not able to provide tax advice at this time. You can also try the following resources from the IRS to find out your taxpayer information:
What if my tax form has incorrect information?
If some information on your tax form is unfamiliar to you, you should reach out to a tax advisor and ensure the information on your tax form matches what the IRS or local tax authority has on file for you.
How do I edit my tax form’s information?
Navigate to your Live Site > Payouts (see also Updating your tax form) or GRIN’s payment portal, where you can update your existing W-9 or W-8BEN. Because 1099s and 1042s are official forms, you cannot retroactively change the information.