> For the complete documentation index, see [llms.txt](https://docs.wandreferrals.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wandreferrals.com/payouts-and-tax-production-rollout-gate-pending/tax-forms.md).

# US tax forms and withholding

> **Launch boundary:** Wand's approved v1 payout scope is limited to supported US merchants and US affiliates. Foreign-affiliate payouts, W-8BEN/W-8BEN-E processing, treaty withholding, and 1042-S support are deferred. Live payout rollout is not approved, and a universal server-side payout kill switch is not yet implemented. Do not move real money until the production payout safety gate, verified denial evidence, review, and separate rollout approval are complete.

## What it does

Wand Referrals helps you meet US affiliate-tax obligations: collect the right tax form from each affiliate, optionally withhold tax from payouts, and generate year-end **1099-NEC** forms. Find it under **Payouts → Tax Forms (1099-NEC)**.

> This is tooling to support your tax process, not tax advice. Consult your accountant for your obligations.

## Which form is in the v1 payout scope

Supported **US affiliates** submit a **W-9** (name, business name, tax classification, address, TIN, and signature) through portal **Settings** once their shop has been admitted to the controlled portal rollout. Do not accept or act on foreign tax forms as authorization to pay a foreign affiliate; that workflow is outside the approved v1 scope.

## 1099-NEC generation

The Tax Forms page lists affiliates who earned commissions in a tax year and flags who needs a 1099:

* **US affiliates earning $600+** in the year require a 1099-NEC ("Yes ($600+)").
* Affiliates outside the supported US scope are excluded from the v1 payout workflow. Wand does not provide an approved 1042-S workflow in this launch boundary.

Click **Generate 1099-NEC** to produce a printable form (Print / Save as PDF). It fills Box 1 (Nonemployee Compensation) and Box 4 (Federal income tax withheld, from the year's withholding records); the recipient TIN is masked. Use **Export CSV** for a full year-end report.

## Tax withholding

Withholding is **off by default**. Enable it on the Tax Forms page ("Withhold tax from affiliate payouts") and set rates:

* **US backup withholding** — applied when a US payee has no valid TIN on file (default **24%**).
* Foreign and treaty withholding are not part of the approved v1 payout workflow.

Withholding is computed **per payout batch, per affiliate**, and is idempotent. Net paid = gross − withheld; **the commission owed is never changed** — withholding only affects what's remitted. Each withholding record carries a reason code. For the supported v1 scope, operators should expect the US TIN/backup-withholding and disabled cases; foreign reason codes do not authorize foreign payouts.

## Related

* [Payout methods & batches](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/payouts/payout-methods-and-batches/README.md)
* [Thresholds & automatic payouts](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/payouts/thresholds-and-auto-payout/README.md)
* [Privacy & data (GDPR/CCPA)](https://github.com/wand-referrals-app/wand-referrals/tree/codex/gitbook-docs-foundation/docs/manual/privacy/gdpr-and-data/README.md)