Foreign Independent Contractors-W8-BEN Form

[jhellested]

What forms are associated with foreign independent contractors? I did have them complete a W8-BEN but am unsure if there are any other documents or forms I need to complete or possibly submit to the IRS or to the individual. The foreign IC does all of their business outside of the USA and is not a US citizen. 

Additionally, do I report payments for foreign IC in the same way or on the same form as my US based independent contractors when I go to deduct these payments as a business expense or is their a separate form or line for foreign IC payments. Thank you for clarifying!

[JanetKT]

@jhellested 

So hope you are having a great Wednesday! You have a foreign contractor and you have correctly had them fill out Form W-8BEB that is great you are doing great! At year end you will not need to issue them a Form 1099. You will deduct the payments on your US return in the same manner as any other contractor. I like using the category of Outside Services when reporting contractor income, but you can be more detailed if you prefer.

Thanks for attending our live event.

Janet CPA