Level 5

Question

can you report foreign earned income as selfemployed income on Sch C?

Forum|Forum|3 years ago
February 16, 2023
1 reply
10 views

My client started new job remote work for a Foreign company oversea

He receive pay each month, there were no tax deducted/paid to foreign country from his income.

Can he report the earned incoem as selfemployed income on Sch C?

If he can, he planed to make contribution to selfemployed retirement account (selfemployed 401k).

ProConnect Tax

This topic has been closed for replies.

Level 15

You need to determine if he is an employee or self employed.

How does the foreign company view him - an employee or a contractor?

https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

Level 5

Well, It is a project last about 12 month, the Foreign company treated him as contractor did not withhold any Host country FICA from the pay. Report on Sch C will pay selfemployed tax.

If report as Foreign compensation (wages) goes to 1040 line one, how to report FICA?

Level 15

"the Foreign company treated him as contractor did not withhold any Host country FICA from the pay."

Maybe they didn't have to if he was there on a 1 year visa. Is this what you based the contractor vs employee decision on?

The more I know the more I don’t know.