ToddL99
Expert Alumni

Business & farm

If this foreign-based contractor performed personal services for you (e.g. home decorating, remodeling, landscaping, etc.), there is no requirement for you to report the payments.

 

From Instructions for Forms 1099-MISC and 1099-NEC (2020) -  "Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable."

 

Withholding tax is another issue. If the contractor provides a completed Form W-8 ECI , then you do not have to withhold tax on the payment.

Otherwise,  withholding is normally required on any payments for independent personal services performed by a foreign individual (while present in the U.S)..

 

See Who Must File Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding for additional information.