1099-MISC to a non-resident alien?

[dirk_1959]

If I hire a non-resident alien who works outside the US, but receives US based income from me, can I deduct this money according to IRS regulations. I would not be able to issue a 1099-MISC to a non-resident alien.   Request recommendations on tax forms to be prepared. Thank you.

[ColeenD3 · Accepted solution]

Please see this answer from ChristinaS.

You don't need to issue 1099s to have deductible expenses. You are only required to send 1099-MISC forms when you are actually required to do so. You just list the payment as contract labor, temporary help, or whichever category is the best fit.

Its always possible to be questioned about contract labor deductions if the amount is significant, and the IRS has no 1099s issued from your business. Either way, deductions and issuing 1099s are separate processes.

Also think about this- you could conceivably pay 1000 people $350, and hence not have to issue any 1099 forms.

Its important that you get verification from this person that he/she is not a US person for tax purposes. The IRS will require that you have done your due diligence in this area. As foreign as that person may be, they need to verify that "officially".

Form W-8

[AT50]

Excellent response. I check the IRS website and the 1099 Misc instruction forms and couldn't find an answer. I'm so happy I could get an answer here. Thanks.