In this article:
Overview
Cambly tutors are responsible for reporting their own Cambly earnings. For your convenience, we total your last year's payments on the pay history page.
Cambly is not able to provide you tax advice. If you have any questions, we recommend you seek professional accounting advice based on the country in which you live and/or to which you report your earnings.
Tax documentation
As a result of various tax regulations, Cambly is required to collect and report information on some individuals who earn income through our platform. All tutors are required to complete the Tax Residence field in the Tax Documentation page of your tutor profile. Your Tax Residence is the country where you fulfill your main tax obligations related to the income you earn here on Cambly.
Based on your Tax Residence country, you may be required to submit additional information. Read on to learn more.
U.S. tutors
If you select the United States as your Tax Residence country, you will be prompted to provide additional information through a form provided by our tax partner, Taxbit.
If your total earnings are $600 or more, Cambly will provide you a Form 1099-NEC as required by the IRS. This form will be generated by our tax partner, TaxBit, and uploaded to the Tax Documentation page of your tutor account. You can expect to receive the Form 1099-NEC by the end of January each year.
PayPal
If you selected PayPal as your payment method on your tutor account page, PayPal might issue you a Form 1099-K based on your earnings and their policies. For more information, please visit the PayPal website.
Regardless of whether you receive a Form 1099-K from PayPal, Cambly will not issue a 1099-K. However, if your total earnings are $600 or more, Cambly will provide you a Form 1099-NEC as required by the IRS.
Depending on your payment provider, you may receive multiple tax forms, such as a Form 1099-K from PayPal and a Form 1099-NEC from Cambly. You can always check your annual total earnings on your pay history page.
Stripe and Other Payment Methods
If you selected Stripe or any "Other Payment Methods" as your payment option in 2024, Cambly will issue you a Form 1099-NEC if your total earnings are $600 or more. This form will be generated by our tax partner, TaxBit, and uploaded to the Tax Documentation page of your tutor account. You can expect to receive the Form 1099-NEC by the end of January each year.
Please note that Tipalti, previously listed under "Other Payment Methods," was removed as a payment provider in June 2024. Any payments made via Tipalti will still be included in your 2024 tax documentation from Cambly, and you will not receive any additional tax forms from Tipalti.
Please note: If you choose to receive payments from Cambly through multiple methods in a calendar year, your income might be split between multiple platforms, such as PayPal and Stripe. In this case, you may receive multiple tax forms, such as a Form 1099-K from PayPal and a Form 1099-NEC from Cambly, with different amounts. You can always check your annual total earnings on your pay history page. Regardless of your payment provider and other tax forms received by 3rd party payment providers, if your total earnings are $600 or more, Cambly will send you a Form 1099-NEC as required by the IRS.
EU tutors
If you select an EU member state as your Tax Residence, you will be prompted to provide additional information through a form provided by our tax partner, Taxbit.
The European Union implemented a directive called DAC7 to encourage tax compliance. As a result, we are required to collect and report additional information on EU residents who earn money on Cambly each year.
This means you are required to complete a DAC7 Tax Profile with the required tax information. You will see this form populate when you select an EU member state as your Tax Resident. You will also receive a copy of the report sent to your country of residence, from our partner TaxBit, to help you file your taxes. This may take up to a few weeks to receive after submitting your information. You can find this in your Tax Documentation page.
Please note: If you completed the DAC7 information last year, your information is still valid, and your status will display as complete after you select your Tax Residence country. You will not need to reenter your tax information. However, please confirm the information submitted is still up to date.
Canada tutors
If you select Canada as your Tax Residence, you will be prompted to provide additional information through a form provided by our tax partner, Taxbit.
Canada has implemented new tax reporting requirements for individuals earning income through online platforms. As a result, beginning in 2024 we are required to collect and report additional information on Canadian residents who earn money on Cambly each year.
This means you will be asked to complete a Canadian Tax Profile with the required tax information. You will see this form populate when you select Canada as your Tax Residence. You will also receive a copy of the report sent to your country of residence, from our partner TaxBit, to help you file your taxes. This may take up to a few weeks to receive after submitting your information. You can find this in your Tax Documentation page.
Tax dashboard banner
If any tax information is required from you, you will see the tax banner at the top of your tutor dashboard. You must complete the action by the given date in order to continue tutoring on Cambly.
Reasons you may see the tax banner:
- You have not filled out your Tax Residence field
- You have selected an EU member state, Canada, or United States, and have not submitted the required additional information
- Your provided tax information is expiring
FAQs
What is DAC7?
DAC7 is a directive from the European Union. The rules from DAC7 require online marketplaces, like Cambly, to collect and report taxpayer information on marketplace providers who earn income via our marketplace and are residents of an EU Member State.
For Cambly, this directive means we are required by law to collect additional tax information from you if you are a tutor and resident in a country that is a Member State of the European Union.
We’re also required to report this tax information along with your earnings to the country where you’re a resident, regardless of where or how you typically file your taxes. This is an EU-wide requirement that applies to all online marketplaces with EU residents providing services.
What are the new Canadian tax reporting requirements?
Canada has introduced new tax reporting rules for online platforms like Cambly. These rules require us to collect and report tax information for Canadian residents who earn income through Cambly. This is part of an effort by the Canada Revenue Agency (CRA) to improve tax compliance and ensure proper reporting of income.
For Cambly, this means we are required by law to collect additional tax information from you if you are a tutor and a resident of Canada. You’ll need to complete a Canadian Tax Profile with the necessary tax details.
What will happen if I don't provide this information?
If you do not meet the deadline on your dashboard banner, you will receive a popup in your tutor account asking to complete the necessary tax information. You will be unable to bypass this form at that point.
To ensure you have no disruptions in your tutoring availability, please update your tax residence country and subsequent tax information as soon as possible
Is it safe to provide sensitive information (such as my Social Security number) on the tax form?
We understand your hesitation, and we take the security of your information very seriously. Unfortunately, providing your Social Security number (SSN) through the designated form is the only way for us to collect this information in compliance with U.S. tax laws, including the issuance of 1099-NEC forms.
We’ve carefully chosen a trusted service provider that specializes in handling sensitive tax information, Taxbit. The form we use is hosted on their secure platform that employs industry-standard encryption protocols to ensure your data is transmitted and stored safely. This means your SSN is fully encrypted and protected from unauthorized access during submission.
What should I do? I only live in a reportable tax country part of the time -or- I file taxes in multiple countries.
Please select the primary country where you’re a tax resident. This should be the country where you fulfill your main tax obligations related to the income you earn on Cambly. If you reside in multiple countries a year, please note: where, when and/or how someone pays their taxes is determined by the prospective taxpayer themselves under applicable law, and not by the digital platform operator.
While our platform collects some tax-related information based on this selection, it’s ultimately up to you to ensure your tax filings are accurate for all applicable countries where you have tax obligations. If you have specific tax questions or concerns, we recommend consulting a tax professional.
What if I don't have VAT?
If you do not have a VAT, simply check the box that says "VAT number is not required or has not been issued".
Do I need to provide my bank account information if I am paid into an account such as PayPal, etc.?
This selection is optional. If you are unsure which bank account you’d like to use or are uncomfortable providing banking information, you may leave it blank.