Non-US Contractor Taxes

[coffeebean]

California

Hi, I live in the US and perform freelance work for a US company as a DBA. I want to contract some design work from Brazil. The contractor is Brazilian and lives in Brazil.

I have read a lot on IRS.gov about 1099 and 1042 and still can't figure this out.

Do I need to issue a 1099 or withhold any taxes?

If I don't need to issue or file any document, can I still claim the cost of his services as expense of my DBA? Would an informal invoice from the contractor suffice as proof?

Thanks so much for helping.

 

[LdiJ]

California

Hi, I live in the US and perform freelance work for a US company as a DBA. I want to contract some design work from Brazil. The contractor is Brazilian and lives in Brazil.

I have read a lot on IRS.gov about 1099 and 1042 and still can't figure this out.

Do I need to issue a 1099 or withhold any taxes?

If I don't need to issue or file any document, can I still claim the cost of his services as expense of my DBA? Would an informal invoice from the contractor suffice as proof?

Thanks so much for helping.

Since he would not be subject to US tax (he would not be living in, working in, or be a citizen of the US) you would not issue a 1099 or do any withholding.

You would however need to receive FORMAL invoices from him in order to deduct what you pay him.

 

[coffeebean]

You would however need to receive FORMAL invoices from him in order to deduct what you pay him.

Thanks. So what a formal invoice would be? Usually freelancers just make one on word or something similar.

That's how I invoice my client, with a world document invoice.

Thanks