Taxes with outsourcers in other countries, HELP
So this is the first year that I have done really well. I hired an accountant and there was a bit of a problem. I am from the US and outsource almost all work overseas to Philippines, India etc...
Now they have never dealt with someone who has done overseas outsourcing. They are worried I may not be able to claim the work outsourced as tax deductions. Since it is going out of the country. And at the moment it is over 40,000 worth, which would suck big time if I couldn't claim any of that as a deduction.
I know a lot of guys outsource here and may be in the same boat. Were you able to get tax deductions on work done from outsourcers?
I found this http://www.irs.gov/pub/irs-pdf/f1042s.pdf which seemed to indicate that I need the name and addresses of everyone I outsourced work to. Maybe that is all I need?
Anyone with experience on this and has any thoughts would be greatly appreciated. Looks like I may need to start hiring some employees here :rolleyes:
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