Hi
I am located in India. I worked for a company in US who hired me as a contractor, had me sign w8-ECI and issued me 1099-misc. Now I gather from other sources that I had to file W-8ben.
Can you tell me exactly what forms do I and the employer need to fill out. And can the situation for last year be rectified otherwise with the currently filed forms, I may end up paying taxes both in India and USA.
Thanks for your time.
-AJ

AJ:

For 2011, it is too late to rectify the situation UNLESS the employer is willing to issue a corrected Form 1099-MISC that shows you received no contract income.

For 2012, complete Form W-8BEN and cite the article in the U.S. - India Tax Treaty regarding INDEPENDENT Personal Service. This article (and other articles) cite that work performed in India are subject ONLY to indian income taxes.

Assuming your employer will not issue the corrected Form 1099-MISC, you need to file Form 1040NR and claim the income listed on the Form 1099-MISC as EXEMPT from U.s. taxes, with Form 8833 to explain the treaty provision.

If you need professional help with this, email me at the email address in my profile, if you cannot see it below.