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payment in U.S. for a U.S. translator in France???
Thread poster: Sara Freitas

Sara Freitas
France
Local time: 08:57
French to English
Jun 27, 2002

I am a US citizen residing in France. I have recently been offered a job through an agency in the U.S. Does anyone out there know about the legality and tax procedures/consequences of having the agency pay me directly into a U.S. account? I am sure it is more financially benefical than being paid in France...but is it legal?

Also, if billing a US customer in France, does the VAT apply? Thanks in advance for your advice!!


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jccantrell  Identity Verified
United States
Local time: 23:57
Member (2005)
German to English
+ ...
tax consequences Jun 28, 2002

I am not a tax expert, but when I was living overseas, the IRS REQUIRED that you fill out the form EVERY year. Of course, you got a credit for living outside the USA and, if you lived in a high-tax country, you could offset the taxes paid in the country against what the IRS figured you owed to the USA.



Seen from this perspective, the only advantage to being paid in the USA is that you need not convert the currency. You STILL have to declare it, probably both in the USA AND France.



To be certain, I would call the nearest big American embassy and ask to speak with the IRS representative.



Good luck!


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Sara Freitas
France
Local time: 08:57
French to English
TOPIC STARTER
US freelancers...how do you account for payments?? Jun 29, 2002

Thanks for the tip...fortunately, I was aware of US filing requirements, and I have been filing from overseas these past few years...Maybe there is a US based translator out there who can tell me what is the procedure from the US end. Do you have to declare yourself as a small business or can individuals accept payments? What about social security deductions and all that?? The customer prefers to pay in the US and if I can avoid paying French \"charges sociales\" on the amount, then it is better for me, too. I would appreciate any advice you can give. Thanks!!

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jccantrell  Identity Verified
United States
Local time: 23:57
Member (2005)
German to English
+ ...
Answer from the USA Jul 1, 2002

Well, Sara, as I live in LA, I will give you this perspective, too.



You need not incorporate or anything like that. You will need to give the payer your \'Tax ID\' which, if you are not incorporated, is your social security number. This only applies if the payments from the payer exceed about USD 600 per year. If it is less, they may not ask.



When you file the 1040 forms for the IRS, you need to fill out Schedule C (Profit or Loss from a Small Business). If you turned a profit, it will show up here and this is where your social security payment will be shown, provided you earned enough money. If not, then there is not social security due.



Good luck, and thank God I no longer have to deal with any of this stuff!


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Sara Freitas
France
Local time: 08:57
French to English
TOPIC STARTER
Thanks!! Jul 1, 2002

Thanks a lot. I did get good clarification from the IRS rep in Paris...shocking!! They were very helpful and told me about all of the forms and schedules I needed. In fact, the \"source\" of the income is where you are physically when you do the work, not where or how or by whom you are paid...therefore the tax laws of that country apply...Thanks again.

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Alexandru Pojoga
Romania
Local time: 09:57
Japanese to English
+ ...
"source" Dec 1, 2002

Hi Sara,



Was browsing through old threads and found your message. Did you say the \"source\" of the income is where you physically do the work, and the tax laws of that location apply?



Does that mean a US translator working out of Honduras would report his income only to the Honduras IRS?



-- Even if he/she gets paid into a US bank account?



If it\'s not too much trouble, I would appreciate an email answer, as I can\'t \'track\' threads (not Platinum yet, you see )


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Daina Jauntirans  Identity Verified
Local time: 01:57
Member (2005)
German to English
+ ...
Nope Alexandru Dec 4, 2002

We (US citizens) are the lucky ones who get to pay US taxes on income earned anywhere in the world. Luckily there is a large income exclusion (about $70,000), so if you earn under that you just end up reporting it, not paying tax on it.

Confused yet?


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