Hi everyone,

does anyone know or do any of you have clients outside the US, about how they provide you with proof of what they paid you during the year, like a US client would send you a 1099?
I've come to a point where I might be able to help a lady from Germany with making calls for her to US companies that she does business with, or tries to do business with.
She wouldn't fill out a 1099 would she, since she has her business in another country and doesn't pay taxes in the States.
Is it as complicated as it sounds to me?
Thanks for your help.

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Tanja
http://www.englishgermanvs.com

Tanja,
I have a couple clients in England I do work for and I just keep track of every penny they send me. Having them pay through Paypal makes it easier to track plus, I have an electronic record of exactly when and how much I was paid.

~C

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~Christina|BD Mag|VOSTeam

Thanks Christina. That makes me feel better. I'm reading another thread about getting/or not getting 1099's from every client even here in the US and apparently it's not THAT critical if you DON'T get one from some clients. Does the paypal work good? I checked into that yesterday too and it's definitely cheaper then doing a bank wire and probably faster, I guess. Have you ever had a problem with their service? The guy told me it would cost me 3.9% of the amount sent to me + 30 cents per transaction.

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Tanja
http://www.englishgermanvs.com

Tanja,

I don't really keep track of the actual percentage but I seem to remember it is 2.9% plus .30 per transaction. I have never had any problems with PayPal. I know others have for various reasons.

All I can say is be sure to set up the account as a business account and attach it to a business checking account/credit card. Makes it easier at tax time.

I have their debit card as well and use it often. Works just like any other debit card (pin or signature) and you get 1% cashback on purchases.

~C

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~Christina|BD Mag|VOSTeam

Yes Christina, I do have a business bank account with a debit card, so you're saying I can enter that bank account into my paypal account info and they will put the transferred money from Germany directly into that bank account? That would be neat. But you will deduct those paypal service fees from your federal taxes, as expenses every year, right?

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Tanja
http://www.englishgermanvs.com

No the paypal items stay in paypal until you ask it to be transferred. You MUST attach PP to a bank account for it to be an active account. They require it so if you try to pay someone through paypal and you don't have enough in the account to cover it, they can try pulling from your bank account or credit card on file.

The debit card I'm talking about is directly from paypal. I use it for business purchases instead of having to wait the potential 3-4 days for the money to be transferred to my bank account.

~C

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~Christina|BD Mag|VOSTeam

Oh, I see. It's a different one! Thanks for your help. I feel better now.

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Tanja
http://www.englishgermanvs.com