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    Clueless3353's Avatar
    Clueless3353 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 24, 2008, 04:25 PM
    Withholding for non-US employee
    Do I need to file a 1099 for a contractor who lives in a foreign country?

    How do I fill out the line "Recipient's ID Number"?

    Do I need to withhold US for this contractor, even though she is not subject to US taxes?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Oct 24, 2008, 11:00 PM

    If the contractor is a foreign person and works from foreign country, then you do not withhold any tax.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Oct 27, 2008, 04:23 AM
    What MukatA says is true, if NO WORK is done within the U.S. borders.

    If work is being done IN the U.S. however, you are obligated to withhold 30% of the pay for income tax purposes. If the contractor has no tax ID number, he need to submit Form W-7 to get an Individual Tax Identification Number.
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