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MGC94
Level 7
March 25, 2024
Question

Aussie

  • March 25, 2024
  • 1 reply
  • 14 views

Taxpayer went to Australia and made $941.04

I am not sure how to handle this at all. There is no tax form just a piece of paper this was his YTD 

 

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1 reply

Level 15
March 25, 2024

Is the taxpayer a US Citizen?

Was he an employee or was he an independent contractor?

Was income tax paid to Australia?

MGC94
MGC94Author
Level 7
March 25, 2024

Yes, hes a US citizen. No taxes paid. No w2. Maybe a sub? Its not on a 1099. Just on a sheet of paper with company name. 

 

Taxpayer is saying with Aussie conversion rate it might not even be $600 US dollars? 

Level 15
March 25, 2024

If the person/company paying him had 'control' over his work, he was likely an employee.  If that is the case, go to line 1z of the 1040 and double-click it.  Double-click again.  Go to line i4 and enter the foreign wages.

If the person/company paying him did not have 'control' over his work, you need to determine if it is a business or 'other' income.  If the work was unrelated to his 'regular' work, it is likely 'other' income in which case you enter it on line 8 of Schedule 1.  If the work was very similar to his 'usual' work, it might need to go on Schedule C.

Yes, you need to convert it to US dollars.