Taxes: W-9, W-8, and 1099
Payouts require a tax form on file. Stripe collects and custodies that form as part of onboarding — Thumper never stores your tax ID. This guide explains what we mirror and the statuses you may see.
Who collects your tax form
Stripe collects your tax form during Express onboarding and keeps it. Thumper only mirrors a status derived from Stripe — we do not hold the document or your tax identification number. This keeps sensitive tax data with the regulated payment processor.
US vs non-US
United States
US sellers complete a W-9. Thumper requests the US 1099 tax-reporting capability on your account, and when Stripe reports it active your status becomes “collected”. A 1099 may be issued according to IRS thresholds.
Outside the United States
Non-US sellers complete the appropriate W-8 series form as part of KYC. When onboarding is complete with no outstanding requirements, your tax status is treated as collected.
Tax statuses
- Not required — you have not started the tax portion of onboarding yet.
- Pending — Stripe is still collecting or reviewing your form.
- Collected — your form is on file; this leg of the payout gate is satisfied.
- Invalid — the form has a problem (for example a name/TIN mismatch).
- Expired — the form has lapsed and must be completed again.
Backup withholding
If your tax form is marked invalid, payouts are not blocked outright — instead 24% backup withholding is applied to each payout until you correct the form. An expired form blocks payout until you complete it again.
Key Takeaways
- Stripe collects and custodies your W-9/W-8; Thumper mirrors a status only.
- “Collected” satisfies the tax leg of the payout gate.
- “Invalid” triggers 24% backup withholding until corrected.