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    bzhu0712's Avatar
    bzhu0712 Posts: 1, Reputation: 1
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    #1

    Jan 13, 2011, 05:13 PM
    Tax on foreign income
    I will provide a consulting service to a company in China this year. I am physically living in the US, and providing service through internet. How to file my tax? Will the tax rate be different than that of a consulting service to a domestic company? Thanks.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jan 14, 2011, 08:55 AM
    There is NO difference tax-wise whether you are providing consulting services to a foreign company versus a domestic company.

    It is still business income generated by services provided INSIDE the United States and thus subject to U.S. income and, since you are either a U.S. citizen, U.S. resident (green card) or resident alien, self-employment taxes.

    If you are a sole proprietor, you will report the income on Schedule C, as well as all expenses associated with the business.

    If you need professional help filing this return, email me at [email protected] for a fee quote.
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