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Paying agent in another country

Posted on 2011-03-02
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Last Modified: 2013-12-07
How paying  an agent, who is not employee, in another country for a service, affect my tax. The amount paid during the year is less than 600 dollars.
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Question by:shoppingtotogo
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by:Julian Matz
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I'm guessing that you would be able to file your costs against income tax. It would be an outsourcing cost. Apart from that, I don't see how it would affect you. It might be a different story though if you were the one receiving the payment. That said, I'm not an expert on US tax regulations (I'm assuming from your timezone setting that you're based in the US).

Have a look here:

http://www.irs.gov/businesses/international/article/0,,id=96739,00.html
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Tiras25 earned 500 total points
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It probably will not effect you in anyway....

If this is an independent contractor, you do not have to 1099 anyone under $600.

If you want to deduct it you simply do so in the proper business expense category.

What kind of work did this person do for you?  What kind of business entity do you have? And will you be needing help from overseas again this year?

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