1099 From A Company Outside Of The U.S.

[JoeJoe52]

I'm in a profession where some of the work is W2 and some is 1099.

My main job, full time, was W2 and was suspended due to Covid about a year ago.  Since then my income has been from various freelance jobs and unemployment.   

I have all the forms to do my taxes except for one company which did not send me a 1099 form.   I was hired by a company in the U.S., through my union, who was working in conjunction with a company from Canada on a specific project.  The Canadian company issued payment.

I've become aware recently that for payments issued electronically over a certain amount that the company in charge of payroll does not have to issue a 1099 (the amount I was paid is over the threshold).   In addition I'm aware that I have to report it whether I get a 1099 or not, however, I like to have these forms.

Someone in the payroll department for the Canadian company told me that as a foreign entity they are not registered with the U.S. government and would not be able to supply a 1099.  They were, however, sending people payment breakdowns upon request.    I have yet to receive this, though the party I contacted reached out to the party responsible for the breakdown so that I'd get one.

Taking into account the aforementioned:

1.  Is someone responsible for sending me a 1099-Misc if not these folks?  I thought I read that the bank who the payment was deposited with has to do that, yet I have not received anything from them.

2.   When I report the income on Turbo Tax what am I going to be asked about where the miscellaneous income came from?   I have a contract for the job through my union but I'm not sure what company info is on it.

I appreciate any advice.  Thanks.

[MinhT1]

1. The foreign company is not required to file or provide you with a form 1099 or any other US tax form.

2. The income you earn from the foreign company is considered as self-employed income and you are required to report this income on your tax return as self-employed income.

You report the income you received in cash, checks or bank transfers or without a 1099-NEC as self-employed income under Other self-employed income.

• In business income, just under Type of Income, click on Add Income for this work
• On the next page, click on the radio button next to Other Self-employed Income
• Click Continue to enter your income received in cash, checks or bank transfers.

[JoeJoe52]

Thanks for your quick reply.  I really appreciate it.

One thing I don't understand is how they know what company paid you the money if you just list it as extra income.   Don't the need some kind of proof?

[npierson7]

No, in general you don't need to have a proof for self-employment income. If you don't have your tax forms, you can enter you income following guidance above, and it is totally legit. 

[JoeJoe52]

Thank you for the reply.  I really appreciate the info.

[JoeJoe52]

I appreciate your quick and expert reply to my prior post, and am about ready to file my taxes.  I have a couple of questions before doing so and hope you might know the answers.

1.  The form for the misc. income turned out to be schedule C.  I'm assuming this is correct.  I simply entered the amount, and put in the address for the company in Canada in the appropriate box.  I just want to make sure that's right.

2.  The job I was hired for was performed in the U.S., in the state where I live and collect unemployment.  Won't they question why it's a Canadian address?   Should I put the address of where I performed the work?   There's no way to indicate any of this stuff, and it's so stressful.  

[DaveF1006]

No, you do not need to report the address where you performed the work although you may be asked this if the IRS makes an inquiry. As far as the address, if a 1099 MISC is filed, a duplicate copy of the 1099 is sent to the IRS.  They already have a record of it. There should be no problems filing your tax return with the information of the 1099 MISC.