Self-Employed question

[solshi]

Hi, I'm Self-Employed in the US, but I would like to open an office outside the US. It is related to the same business I have here, and I will be the only one managing it when I'm in that country. However, I will incur expenses (services and office equipment), how can I report those expenses?

Also, can you tell me where to pay my quarterly State taxes for Maryland?

And, the last question, my son had a daughter last year, but neither he nor I didn't report her in our 2022 tax return because she didn't have a social security number, because she was born in another country. We are requesting her social security number now. Do you recommend reporting her birth in the 2023 tax return when we know her social security number or amend the 2022 tax return because she was born last year?

[LEG_EA]

Hi @solshi,

Congratulations on your business expansion!  

For the expenses mentioned, when it comes to office equipment, the deduction will be as usual, through depreciation.  When it comes to services, you have to consider if the person or entity has US tax obligation.  If they don't, just have them fill form W-8BEN.  Also be mindful of all the travel expenses and know how to properly claim them.  You can get more information here:  

Topic No. 511, Business Travel Expenses 

Tax Deductions for Business Travelers 

For Maryland estimated tax payments, you can go online to pay them.  Follow this link:  https://interactive.marylandtaxes.gov/individuals/payment/.

Regarding your granddaughter, there are several rules that apply when claiming a dependent.  In your post you don't specify citizenship or where the baby was living or whom she was living with during 2022.  There are several tests that will determine if she qualifies as a dependent.  You can see those tests here:  Overview of the Rules for Claiming a Dependent.

Also IRS has this tool that by answering a couple questions, will help you determine that:  Whom May I Claim as a Dependent?  In the case that she does qualify as a dependent for your son (or you), then amending is an option.