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Dec 11, 2018
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I run a small online business from home and I pay a bunch of people to help me out from time to time. I pay them at time of service through PayPal and don't withhold any taxes. (I'm not sure whether I should call them freelancers or suppliers...)

Do I need to send them all 1099's at the end of the year? Some of these people live outside of the US - example, the guy who I used for web design is in India. I ended up paying them around $800 or multiple projects this year and I don't have a physical address for them. Do I still need to email them a 1099?

Does the 1099 rule still apply when you hire freelancers from overseas?
 

djbaxter

Administrator
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Nov 10, 2016
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2,208
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I'm neither an accountant nor a US citizen but I don't think so. Technically, they didn't earn that money in the US so they are responsible for reporting the income to their own governments.

I do know that some US businesses have required me to complete a Wxxxxx form affirming that am not a US citizen and do not have a business presence in the US and for that reason do not require any taxes to be withheld.

But I would check this with an accountant in the US.
 

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