Business tax question: Do I pay taxes for work done for an overseas company?
I’m a one-person consulting company in the US. I performed consulting work for a company in Germany, all done remotely. They direct deposited to my business bank account in the US once the work was completed. Do I pay federal taxes on that income? I assume yes, but is it treated any different from if that company was in the US?
Also, how in the heck do I figure out the amount of federal tax on my income? The FICA, etc., etc.? I have the IRS booklet on it, but I can’t figure it out. Thank you!
Also, how in the heck do I figure out the amount of federal tax on my income? The FICA, etc., etc.? I have the IRS booklet on it, but I can’t figure it out.
I should clarify that I’m talking about taxes for an S-type corporation, not individual.
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Tags: business bank account, consulting company, federal tax, federal taxes, germany, heck, irs booklet, s type
Yes you pay tax on income "from whatever source derived".
Use Sch C.
Get some help. You have a lot of deduction you can take againsst the income and reduce your self-employment taxes.
Yes, you pay federal taxes on that income. No, it is not treated any differently from income derived from US sources.
You will include this along with all other income from your consulting business on Schedule C. The net profit or loss will be carried over to your 1040.
Your social security tax (it’s called self-employment tax) is computed on Schedule SE, and the tax is carried over to your 1040.
Certainly u can pay the taxes,work done for an overseas company..For more infirmaion gothrough any one of the follwing site…..
You may be eligible to exclude $82,400 of your foreign income. Check out the IRS to see if you qualify. It sounds like you need to complete a schedule C and SE, the forms are pretty self-explanatory, see a professional if you have any problems.