My employer is foreign based, but pays me for work done in the USA. He does not withhold any monies for tax or benefits and the income doesn't exceed the cost of living, so I am concerned about tax obligations since there will be no money reserved come tax season. What are my tax responsibilities for income paid by a foreign employer for a service delivered overseas but I am not living overseas?

ANSWER

The BIDaWIZ Team's Answer:

Are you technically an employee or an independent contractor of the company. If you are an employee, it is likely that the company has tax nexus in the United State and should be filing a tax return themselves. In that case, you should be receiving a form W-2. If you are an independent contractor, then you should be issued a 1099 and report it on schedule C of your form 1040.