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How to report Us paypal earnings for Non-us citizens?

by imwizard2
7 replies
Hey guys, I have a question about pay pal earnings pertaining to non-us citizens. Please forgive me if this query has nothing directly to do with internet marketing, however I felt that I could get the best advice out here so I decided to post this question.

1) Are non-us citizens required to report Us paypal earnings to the IRS?
2) If they are required, would they use the 1099 to report earnings?

Thanks I appreciate it
#citizens #earnings #nonus #paypal #report
  • Profile picture of the author Michael Ten
    call a lawyer probably.. or consult a tax professional.
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  • Profile picture of the author Rus Sells
    You'd report those payments if you can prove them, as additional cost of good sold or as commissions. Depends on what you were paying for.

    If you paid outsources to do work for you that would fall under cost of good sold. In other words a cost related to providing a product or service.

    If you paid affiliates then that would most likely be considered commissions.

    Either way the payments are legit deductions and your CPA will know where and how the payments should be classified.

    Non US citizens to not fall under the jurisdiction of the United States Tax code unless they lived in the United States while earning the money.
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    • Profile picture of the author DreamMachine
      You would not need to pay taxes in the US, but you would need to declare the income and pay the associated taxes in your country of residence.
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      • Profile picture of the author cherylwright
        Originally Posted by DreamMachine View Post

        You would not need to pay taxes in the US, but you would need to declare the income and pay the associated taxes in your country of residence.

        What DreamMachine said. (I'm in Australia)




        Cheryl
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  • Profile picture of the author powerspike
    I'm in Australia as well, i report what i earn from adsense/clickbank/etc as income. This also allows me to claim what i purpose for internet marketing as business costs, so it does has it's benefits as well. (for reference - most courses/ebooks go under training, and most software goes under software and/or tools). It'll depend on your individual country.
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  • Profile picture of the author Hexor
    Try contacting the customer service and in some case, a professional. They may help you to solve your problem. Dont panic. Or mail them through snail mail. I know they give more attention to this than e-mail. Hope i help. Have a nice day!
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    • Profile picture of the author imwizard2
      Thanks everyone, I appreciate it
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