I paid 2022's taxes in Poland as an expat of the US and my 1099-K will have my Tax Treaty Country listed as only the US – is this ok when it comes to the IRS?

[aaron5596]

Hello, I'm newer to this whole expat thing.

The first half of 2022 I paid taxes to the US, the second half of 2022 I paid taxes to Poland. I am an expat of the United States and currently live in Poland and pay taxes in Poland as a resident. 

I receive my self-employed (Sole Proprietorship) income from a US based company, they are a marketplace platform, selling my digital product. I have learned that they will be reporting my income as a 1099-K to the IRS, with my Tax Treaty Country listed as only the US. This 1099-K will include all revenue that they have paid me in 2022 (including the income I already paid taxes on in Poland).

Is this ok, when it comes to the IRS - to do it this way - with the whole year's income being sent and reported through that single 1099-K with only one country listed, since Poland and the US have a tax treaty with one another?

I obviously don't wish to be double taxed on this income earned abroad, this isn't an issue on Poland's side, I'm just wondering if it's going to be an issue with the IRS.

Thank you for your help,
Aaron

[ZhuoliA · Accepted solution]

Yes, the 1099-K will report the whole year's income through one single 1099-K if you are a U.S. citizen and subject to U.S. income tax for the whole tax year. The treaty benefits do not apply in this case. You can take advantage of either the foreign tax credit or foreign earned income exclusion to avoid double taxation. TurboTax can help you with both 1099-K reporting and foreign tax credit/foreign earned income exclusion calculation. Please see the articles below for more information.

Filing taxes while overseas

How to enter the 1099-K in Turbo Tax?

Where to enter foreign tax credit in Turbo Tax?

Where to enter foreign earned income exclusion in Turbo Tax?