No. If you are an independent contractor, you are not an employee. Your Chinese principal will not give you a
W-2. You should keep your own records of
your income and expenses and make estimated Federal tax payments during the
year. You will file your business income
and expenses, if you are a sole proprietorship, on your Schedule C. This form is part of your Federal 1040
form. If you have a large number of
expenses, we suggest the Home & Business level of TurboTax for your Form
1040 and your Schedule C. The Deluxe and
Premier levels of the program will produce a simpler Schedule C-EZ.
Article 22 of the U.
S. China Tax Treaty discusses the elimination of double taxation. This document is available at the following
link: https://www.irs.gov/pub/irs-trty/china.pdf.
Under Article 22, the
U. S. will allow a credit against U. S. tax for income taxes paid to China on
the same income. This will eliminate the
double taxation.
