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Level 1
posted May 24, 2023 9:10:25 AM

W4 Question

Hi there, I have a second job as a sport professional where I am compensated partially in salary, bonuses and in expense reimbursement. This is paid by an entity (shoe company) based outside of the US. I am a US citizen, and all business for the shoe company is conducted in the US. I am paid in US dollars. I adjusted my W4 on my primary job using the IRS form to calculate additional withholding to account for the second job, but is there anything else I need to do, or be aware of given the entity paying me is outside of the US? Would I have my tax professional prepare a 1099 at the end of the year to declare the income to the IRS? As far as I understand it, the expense reimbursement is not taxable income? Thank you! 

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3 Replies
Employee Tax Expert
May 24, 2023 9:20:51 AM

Hi there, Wow sounds like your hustling. Great job! So for the expense reimbursement, as long as you're incurring the expense, and the company is properly reimbursing you, it shouldn't be taxable. You could always confirm with your company whether they have a valid expense reimbursement plan in place. Most do, but it is an IRS requirement. If you have accounted for the 2nd job on your primary's W4 you should be ok. I would recommend plugging all your info into our W4 Calculator Once you plug everything in it will give you the best way to fill out the W4. Keep up the good work!  

Expert Alumni
May 24, 2023 9:24:03 AM

Hi,

 

  • The company should issue you a W2 to report your taxable earnings.
  • Reimbursements are non-taxable payments you pay to employees if they've paid business expenses out of their own pockets. 
  • Am I Required to File a Form 1099 or Other Information Return? Click this link to see if you are responsible to file a 1099: 1099 

Hope this helps!

Level 1
May 24, 2023 9:27:35 AM

Thank you! Is there a process or means for a company based outside of the US generate a W2? Thanks for your help!