Hiring a non resident alien spouse as a contractor

Forum|Forum|1 year ago
November 13, 2024
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Hello!

I’m self employed as a sole proprietor. I recently married a non resident alien and we live together overseas. On a part time basis, he helps me with my business for specific tasks, including translation.

Can I legally hire him as a contractor? My understanding is that he would need to fill out a W-8BEN, but that I would not need to withhold taxes or report to the IRS because he’s performing the work outside of the US.

Is this a correct assumption, and are there any other considerations I should be aware of?

He and I have a joint US bank account- can I pay him there from my business checking account? Or is cash payment an option?

I’m planning to file married filing separately and he will not file a US tax return. He does not have an ITIN. Any money he earns will be taxed in his home country,

Thank you!

Ask the Experts - Biz Tax Moves - Nov 2024

evelynm

As you plan on Married Filing Separately (MFS) filing status, you won’t treat your spouse as a resident for tax purposes, and therefore you won’t include your spouse's income on your return. Here are further issues to consider for your reference: Non Resident Alien spouse

For the tax withholding it depends. Nonresident Aliens may be exempt from some payroll taxes. The taxes they’re exempt from depend on the type of visa they have. This link should help: nonresident-alien-tax-withholding-foreign

I would check with your bank regarding a NRA as joint owner due to various U.S. rules and regulations, including FATCA before deciding on payment options.

Have an amazing day. Evelyn M (CPA 20+ years)I would love a thumbs up :) + Mark the post that answers your question by clicking on "Mark as Best Answer"