Are foreign payments subjected to taxes for US freelancers?
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$3 Answers
http://www.unclefed.com/TaxHelpArchives/1998/irs-tt/tc854.html
With respect to your situation, it seems that you spend the majority of your time in the US. If this is the case you are required to declare and pay income taxes on all of your income, regardless of whether your receive a 1099.
This link from the IRS provides you with further details about your responsibility for self employment tax:
http://www.irs.gov/businesses/small/article/0,,id=98846,00.html
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$The income that you earned from foreign sources is excluded for tax purpose. The specific amount differs every year. For the tax year 2010 the amount is $91,500. Any foreign income beyond that amount will be taxed at the marginal tax rate for the individual tax payer.
You mentioned that you are a freelancer, so you have to report all business income to the IRS 1099s sent by companies. Since you are considered self-employed, all income that you generate must all be reported, if companies did not send you 1099s you must keep your own detailed record.
American companies are required to send out 1099 forms when they pay non-employee contractor more than $600 in a single calendar year. Income below $600 is still reportable by the taxpayers. If you have a large number of $400 and $500 checks from different clients have to refer to their pay stubs. This is for your tax-record purposes and you should keep this in case of audit.
Sources:
http://karenberger.suite101.com/reporting-freelance-income-for-us-income-taxes-a196099
http://inkwelleditorial.com/freelancing-and-taxes-info-for-2011
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$
Yes, invoice payments in Euros (or any other currency) would be considered to be taxable. You will need to apply a reasonable exchange rate when reporting the income (the rate in effect on the invoice date, or the average rate for the month).
Anything you spend will have to separately recorded as an expenses if it relates to your business.
Is this only US dollars?
What happens if he receives euros and spends them abroad instead of dollars?