[jesslyn8]

Hi ATE:

I received 1099-MISC from my client for last year payment (2006).
My question is that I'm Indonesian who's been hired as a independent cosultant by US firm, but did all the work in my own country all year long.
So how am I supposed to deal with this tax issue?
I believe I'm not a subject for US tax purpose, but in 1099-MISC they stated my SSN (the one that I got when I was a student 3 years ago in US - F1 visa).
Could you please advise me, if I still have to report to IRS or not, if I do, with which form? (1040 NR or something else?)
And if I had been worked for two different company, meaning I'll get two 1099-MISC form in my hand eventually, how that will effect the report?

Thanks in advance,
Jesslyn

Note: I was not in US any longer since early 2005.

[IntlTax]

As long as you are not a U.S. citizen and are not a U.S. resident, then you are not taxed in the U.S. on services performed outside the U.S.

[AtlantaTaxExpert]

I agree with IntlTax.

Income earned while located outside of the U.S. is NOT taxable if the earner is not a U.S. citizen or a U.S. resident alien.

You need do NOTHING!

[jesslyn8]

1. Thanks both for the reply. But I thought there's a certain limit where I don't have to pay tax, and if it's exceed, I need to pay. Or did it only happens for people who worked within US?

2. I understand that they have to send me 1099-MISC regardless where I am, to get some tax refund out of their expenses for my compensation, is that right?
So even though I didn't file anything due to my status & location, does it make any difference for them? (meaning will they still get their refund, despite me not paying tax per se)

3. I also wonder, if they will become a long-term clients for me, is there anything we need to know or do for a future tax purpose, so both side won't get any trouble later on?
Because they still using my SSN, even though it's clearly say that it only valid by INS authorization. But I thought as long as I'm not working in US, it'll be OK to use the number for my client tax purpose, is that true?

Sorry, seems I'm asking the similar things twice, but I just need more clarification.

Thanks in advance,
Jesslyn

[AtlantaTaxExpert]

1) There is no limit that I know of.

2) They get no refund; they just do not get fined for not obeying the law.

3) As long as you are a true citizen of Indonesia, you have nothing to worry about.

[jesslyn8]

1) There is no limit that I know of.

2) They get no refund; they just do not get fined for not obeying the law.

Thanks ATE for the informations.

Could you tell me what's the law says for this case? Or could you suggest, is there any links/publication that I can read from?

Best,
Jesslyn

[AtlantaTaxExpert]

Jesslyn:

You can first try Internal Revenue Service.

There are commercial sites which give you direct access to the Internal Revenue Code, but they generally charge for it.

[jesslyn8]

Thanks for the answers ATE!

Best,
Jesslyn

[AtlantaTaxExpert]

Glad to help!