I paid 2 independent contractors overseas (not US citizens); one was more than $600. Where can I report these business expenses? Also pls confirm no 1099 is needed.

1096

Level 3

Jun 1, 2019 11:14:06 AM

These payments would be entered as payments to subcontractors.

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You are correct, you would not issue them a 1099, BUT you do need to report this on form 1042 and may have been required to withhold taxes for them. If you did not do this, you may want to speak with a local tax professional to help you get this all straightened out.

https://www.irs.gov/pub/irs-pdf/f1042.pdf

https://www.irs.gov/publications/p515

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I paid 2 independent contractors overseas (not US citizens); one was more than $600. Where can I report these business expenses? Also pls confirm no 1099 is needed.