Have a Tax Question? Ask a Tax Expert
Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.As your friend lives here in the US she is either a resident alien, a nonresident alien, or a citizen. If she is a resident alien or citizen she is taxed on her worldwide income. It does not matter if she brings the money back into the US or not.
Her business type (sole proprietor, LLC,....) will determine how she is to report her income.
Can you tell me more about the business type (incorporated or not) and if she is a US person?
She is a sole proprietor not incorporated and yes she has us citizenship. How would the income be reported to The IRS.
She should report her business income on Schedule C. She will also use the same to report her expenses. SHe will have self employment tax also for any Net over $400
got it thank you!
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