Compensation from Foreign Organization

[htakaya]

Hello, I have been offered a (US based) consulting position with a foreign Company (with no US entity), whereby the compensation will be wired monthly from them.

What will be my US tax obligations for this income, and how is the tax amount calculated and paid? Thank you.

[kthomasusa1]

You will report this as self-employment income on your Schedule C of your 1040 individual tax return. You can offset the self-employment tax and income tax created by this income by applying business expenses related to this against this income. Travel, internet, cell phone, office supplies, video conference fees are a few that come to mind. I am assuming you are doing this work in the US. If you are doing this work outside the US, you have the ability to exclude all or a portion of this income as excluded foreign income.

Good luck to you.

Kelly C, CPA