Independent contractor for international organization, green card holder, no 1099

Forum|Forum|1 year ago
March 16, 2025
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I would like to know if as an independent contractor for an international organization which does not provide me with a 1099 I have to pay self-employment taxes and how to report income using Turbotax. I was informed that they only provide 1099 for independent contractors that are US citizens and not for green card holders. When I worked as a consultant for the same organization (was considered an employee), I was exempt from State and Federal taxes, but now as an independent contractor I am not sure. The only references I could find on the IRS site are to services provided by U.S. citizens (not green card holders) or employees that are green card holders, but not services provided by green card holders.

Thank you.

Green card holders (lawful permanent resident)

If you are a green card holder working for a foreign government or international organization, you generally must report your earnings as wages but are not subject to self-employment taxes on those earnings and may not voluntarily pay self-employment tax on those earnings.

Services for foreign government or international organizations

For U.S. citizens, the income paid for services to a foreign government or international organization is reportable as self-employment income on their U.S. federal income tax returns and is subject to self-employment tax to the extent such services are performed within the United States.

Best answer by SusanY1

I have an additional question regarding estimated quarterly payments. In case my spouse's employer is withholding more taxes from their income, would that mean that I do not have to make estimated quarterly payments as we will file jointly and their withholding would offset any amounts I owe at the end of the year? Is it an option to increase my spouse's withholding instead of making estimated quarterly payments for federal, state and self-employment taxes?

Thank you!

Yes, it is fine to increase withholding on your spouse's pay rather than making quarterly estimated payments (as long as you'll be filing a joint return, of course.)

I would suggest that you make a note on your calendar to check to see where you are with the withholding around mid-year so that you can make any additional adjustments, if necessary. A great place to do this is our W-4 Calculator. If you make the changes this time of year (or any time after around March) you should do an additional check around October of this year and then consider a reset in January. The reset in January is because a change made after the first few weeks of the year will often try to "make up" for the missed months so you could end up over withholding.

TurboTax can print the 1040-ES vouchers for you, but many taxpayers do find it easier to just pay online. If you do pay online, you do not also need to mail in any voucher. Just be sure to note that the payment is for "estimated 2025 taxes" so that they are credited properly.

SusanY1

You do not pay self-employment taxes as a green card holder working for an international organization. Typically, they do provide you with some sort of summary of income letter or similar doument at the end of the year. This number should have the information needed for you to report the income.

Do you peform the work from inside the US or elsewhere? Let us know, and then we can guide you through where to report the income in the TurboTax software.

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LetimartaxAuthor

Thank you so much for your reply.

Do I pay State and Federal income taxes or I just need to report income but not pay taxes on it? When I was a consultant, I got a letter stating I was tax exempt, but as an independent contractor I do not get that letter, but I also don't get a 1099 as a green card holder. They do provide me with the deposit receipts for the amounts paid to me.

I perform the work from inside the United States. I would really appreciate your guidance on how to report income using the TurboTax software.

Thank you for your help!