How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask wm030303 Your Own Question
wm030303
wm030303, Enrolled Agent
Category: Tax
Satisfied Customers: 112
Experience:  I am both a CPA and EA with over 30 years of experience in solving tax related issues.
62711457
Type Your Tax Question Here...
wm030303 is online now
A new question is answered every 9 seconds

I am a medical researcher at a university. I pay my subjects

This answer was rated:

I am a medical researcher at a university. I pay my subjects approximately $200.
1. Do I need to file a W-9 for subject compensation. I recruit subjects who are students, pay them for their participation.
2. Can I pay Canadian students who do not have social security numbers. Would they have to complete a W-8

wm030303 :

Hello and welcome to Just Answer my name isXXXXX need to file a W-9 form to obtain a valid taxpayer identification number from an individual and substantiate that they are not subject to backup withholding. As far as reporting this income to the IRS on a 1099 misc form is concerned, you would not be required to report these earnings if you paid these individuals less than $600.

wm030303 :

As far as the W-8 form is concerned....

Customer:

Do you agree with assessment that subject compensation is not payment for services rendered?

wm030303 :

yes

Customer:

The instructions for the W8 talk about income from compensation for or in expectaion of services performed. I am thinking that subject compensation does not fall under this category. And clearly none of the others fit

wm030303 :

It would be classified as other income on form 1099 if $600 or more

wm030303 :

You should not file the W-8 form if the income is less than $600

Customer:

Is there any rule against paying Canadians subject compensation less than $600

Customer:

these are students who are not eligible for employment in the US without going through a special application process. Since it is not a job, I need some evidence to show the accountants that we can pay them. i.e. the IRS doesn't care if we give these canadian students $200

wm030303 :

I don't believe there is any rule that prohibits you from paying Canadians less than $600

Customer:

Any thoughts on some obscure line in the tax code that would convince our accountants?

wm030303 :

I'll look into that give me a while

Customer:

Thanks

wm030303 :

In IRS publication 519 on page 46 you do not need to file a US Non Resident Alien form 1040NR if you were a non resident alien student who was temporarily present in th USA under a F J M or Q visa.

Customer:

I will present this info to our administration and see what happens. Thanks for your help

wm030303 and 2 other Tax Specialists are ready to help you