> For the complete documentation index, see [llms.txt](https://docs.oscollective.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.oscollective.org/for-hosted-member-projects/spending-money-and-getting-paid/tax-info.md). # Tax & Accounting ## For Payees/Expense Submitters ### Tax Forms Required * If your invoiced payments from OSC total $600 USD or more per year, you must submit: * **For U.S. payees** — W-9 form * **For non-U.S. payees** — W-8BEN/E form * When your invoices exceed $600, OSC will send you an email from Dropbox Forms with a secure link to complete your tax form: * "Open Collective sent you a request via Dropbox Forms." * Your expense will not be paid until your tax form is submitted. ### Reporting income from OSC * **U.S. payees** — * If you earn over $600 in a year, OSC will issue you a 1099 form for tax reporting. * If you earn less than $600, you won't receive a 1099 but you still need to report it as miscellaneous self-employment income when filing your taxes * [Here ](https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/Filing-IRS-Form-W-9/INF19741.html)is a good explanation of how W9s work for independent contractors, and there's more info on what a 1099 is [here](https://turbotax.intuit.com/tax-tools/tax-tips/Self-Employment-Taxes/What-is-an-IRS-1099-Form-/INF14810.html). * **Non-U.S. payees** — * OSC will not issue a tax form. * However, we are required to collect your tax form for accounting purposes to confirm that the payment was made to a non-U.S. citizen. This helps us accurately report payments and differentiate between U.S. and non-U.S. payees. * You are responsible for complying with your country's tax regulations and obligations. *** ## For Financial Contributors/Donors * Contributions to hosted member projects managed by OSC are not tax-deductible. OSC is a 501(c)(6) nonprofit organization and not a 501(c)(3) charitable or public-benefit organization. * The IRS does not automatically classify open source projects as charitable just because they use an open source license. To qualify as a charity, an organization must serve a specific charitable group or purpose, and open source alone does not fulfill that requirement. * **For international contributors:** Contributions made through Open Collective are treated as voluntary contributions to a U.S. nonprofit and are not considered purchases of goods or services. As such, OSC does not charge VAT or sales tax on contributions. Contributors outside the United States generally do not need to account for VAT on these transactions. If you are unsure how this applies in your jurisdiction, please consult your local tax advisor. *** ## For Project Admins ### Tax Handling * OSC manages tax requirements for your project for the funds that we hold. This includes: * Collecting the required tax forms (W-8 or W-9) from financial contributors and payees * Filing taxes * Issuing 1099s, as required As a fiscally hosted project, you do not need to register or file anything for tax purposes related to the funds we hold. One of the core benefits of being fiscally hosted by OSC is that we handle tax compliance on behalf of the projects that are raised through us. ### **The exception would be personal taxes.** As shared above, individuals who receive income from Open Source Collective (or one of its hosted projects) will be asked to submit a W-9 or W-8 (depending on the country you are in) and will be issued a 1099. If this applies to you, you will automatically be sent a notification. We take care of filing these with the IRS at the end of the year, along with the total amount the individual was paid throughout the year. The individual will receive a notice from the IRS for any taxes due to the US, as OSC is based there as a business. **If you have questions about your own personal tax situation, we recommend reaching out to a tax professional.** ### Accepting Grants: * As a fiscally hosted project under OSC, you can accept grants. * Some grants are limited to 501(c)(3) organizations. Before applying, confirm that the grant allows funding to a 501(c)(6) nonprofit. *** :point\_right: [**For more information on taxes and the Open Collective platform, please see their documentation**](https://docs.opencollective.com/help/expenses-and-getting-paid/tax-information#info-for-expense-submitters-getting-paid) [**here**](https://docs.opencollective.com/help/expenses-and-getting-paid/tax-information#info-for-expense-submitters-getting-paid)**.** --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.oscollective.org/for-hosted-member-projects/spending-money-and-getting-paid/tax-info.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.