overseas taxes

Forum|Forum|6 years ago
December 30, 2019
1 reply
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Hi!

I am a Malaysian, currently working in the US, but am planning to return home soon, and likely will be working for a telemedicine company providing consultation.

In a scenario where a Non US citizen is working for a US company, while living abroad, how does taxes work? Should I request for 1099 only?

joneska11

Level 2

According to the IRS: As a general rule, wages earned by nonresident aliens for services performed outside of the United States for any employer are foreign source income and therefore are not subject to reporting and withholding of U.S. federal income tax. https://www.irs.gov/individuals/international-taxpayers/persons-employed-abroad-by-a-us-person

In order to receive a 1099-MISC instead of a W-2, you will need to meet the qualifications of an independent contractor and not an employee. Please see the following for more information:

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee