1099 NEC declare as foreign income

[DaveF1006]

 Yes, that may be correct because of the self-employment tax that you need to pay. 

[pk]

@hyoksoo , assuming that you have been able to exclude all your active income ( using Foreign Earned Income exclusion ) , the only remaining  issue would be  FICA/SECA ( at 15.3% for Social Security &  Medicare ).  This can also be reduced or eliminated   if you are participating in South Korea's   equivalent to Social Security / Medicare.  US & South Korea indeed have  a totalization agreement -- thus you pay ONLY to one country.   Depending on your long term plans  on where you are going to live and receive  Social Security benefits.   You will need a certificate  of p[articipation from South Korea to include on your  Schedule-SE  to not have to pay SECA taxes  or vice versa for equivalent   action in SK.

I have read through the responses from my colleague @DaveF1006  , which I generally agree with.

By the way , if you are satisfied with answers herein, please consider accepting as solution ( or tell me what more is needed ) so this long thread will close--please.

Does this help ?  Is there more I can do for you ?

pk

[Annatran]

Hi, I'm not a U.S. citizen. I've worked in the US with a Visa since 2018. In 2024, I moved to Vietnam from mid-May to mid-November and worked remotely for a U.S. company (the same company I've been working for in the U.S.). I received payment as a contractor. Am I considered a U.S. resident? My employer sent me Form 1099-NEC. Do I have to report this income? Is it correct that I get form 1099-NEC?

[pk]

@Annatran    My answers are in Italics

(a) I'm not a U.S. citizen. I've worked in the US with a Visa since 2018. In 2024, I moved to Vietnam from mid-May to mid-November;

When you left the USA , was it because your visa ran out or you just gave up  your visa ( i.e. the question is did you have to inform the USCIS  ).  What visa were you on while working in the USA ?

My general position is that  if your visa  ran out, then for  2024 you would be a dual status person ----- 01/10/2024  till  05/XX/2024 you were a resident  ( having passed SPT counting  all days  present in 2024 and the days in years before ).  Thus for that period you would file a form 1040. For the rest of the year  you are taxed ONLY on US sourced income  and you file a form 1040-NR  ( Not supported by  TurboTax).  Note that your income from working while in Vietnam, no matter whom was paying, is NOT US-Sourced  income and not subject to US taxes.  If however, you had interest income from US banks, dividends from US stocks etc. -- those  may be US sourced.

(b)  worked remotely for a U.S. company (the same company I've been working for in the U.S.). I received payment as a contractor.

Any work performed  in Vietnam is Vietnam sourced income, even if  you were  performing work for  a US entity.

(c)  Am I considered a U.S. resident?

If your visa ran out  or  if your  trip to Vietnam was not a temporary absence ( and  fully intended to return  with the same valid visa ), you are no-longer a Resident.  Only you can answer  what your intentions were.  I am assuming here that you did not return to the USA on a continuation of the same visa

(d)  My employer sent me Form 1099-NEC. Do I have to report this income? Is it correct that I get form 1099-NEC?

For your employer's US books, the issuance of 1099-NEC is correct -- it is a contractor  payment.  You definitely have to recognize this  in your Viet. Tax return ( I know nothing of that ).  However , since you would be NRA,  you do not have  any  US reporting for this   ( not even on your 1040-NR because this is not US sourced income for an NRA.

Does this answer your query ?  Is there more I can do for you ?    Just for closing the query, if you could, please answer my questions embedded  in my answers --please.