Working in the USA Thread poster: mbc
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mbc
Spain
Local time: 03:47
Spanish to English
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I am a US citizen based in Spain. I work mostly with publishers and cultural institutions here. I would like to start looking for clients in the US as well--here´s my question--what do I need to do in order to invoice legally in the US? (Is there a tax number, for example?) I know all the EU rules but have not a clue when it comes to my home country! Any suggestions/advice would be greatly appreciated.
Thanks a million,
Madeline.
| | | | | From one US expat to the other | Dec 9, 2003 |
As far as I know the most important thing to provide to a customer in the US is your social security number (although I don't think it has to go directly on the invoice). You want to be sure you submit a US tax return at the end of the year, however, otherwise Uncle Sam may come looking for you...
| | | | Susana Galilea 
United States
Local time: 21:47
English to Spanish
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| Social Security Number | Dec 9, 2003 |
Madeline Carey wrote:
I know all the EU rules but have not a clue when it comes to my home country! Any suggestions/advice would be greatly appreciated.
Hola Madeline, I am in the exact opposite situation
As best I know, I agree with Rebecca all you need to provide is your Social Security Number to the agency or client. Technically, they will only need that number if they pay you more than US$600 in one year, but you will need to report ANY amount you earn to the IRS.
Since lately there has been a lot of hoopla about identity theft in this country, you need to be careful about providing your Social Security Number only to people whose identity you have verified. It is customary to include the number when invoicing translation agencies (at least the reputable ones), otherwise you can request they send you a W-9 Form where you can indicate your tax info.
Take a look at this thread on a similar topic: http://www.proz.com/topic/11698
Hope it helps, and regards to my home country
Susana Galilea
Accredited Translator, EUTI
[email protected]
www.accentonspanish.com
| | | | mbc
Spain
Local time: 03:47
Spanish to English
+ ...
TOPIC STARTER | thanks fellow expats | Dec 9, 2003 |
Thanks to both of you. The link helped, Susana. Now, I just have to remember...my social security number, I have replaced it in my memory bank with the ol´ Spanish id number...
Cheers from Catalunya,
Madeline
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Susana Galilea
United States
Local time: 21:47
English to Spanish
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| Kevin Fulton
United States
Local time: 22:47
German to English
| US clients generally pay by check | Dec 10, 2003 |
I don't know what the usual practice is in Spain, but my Europe-based clients (German and Austria) prefer to pay with a bank transfer to my German bank. American companies for the most part would rather pay by check, which might be a hassle for you, since doubtless you would have to pay fees, wait for the check to clear, etc.
Kevin
| | | | mbc
Spain
Local time: 03:47
Spanish to English
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TOPIC STARTER | checks and transfers | Dec 10, 2003 |
Yes, you´re right that getting a US check cashed in Spain would be very complicated. I have a "back-up" US bank account for that very reason. Thanks for the suggestion.
| | | | | self-employment tax | Dec 10, 2003 |
Something else to be aware of is self-employment tax. If you're an American, you need to pay approx. 15% self-employment tax on the net profit of self-employed earnings, regardless of where you earn it, i.e. even if you're living abroad and none of your clients are US-based. The one way around this is to pay the social security taxes of the country where you live.
A woman named Jane Brunno (sp?) wrote a book titled along the lines of "Tax tips for the expatriate" which is worth che... See more Something else to be aware of is self-employment tax. If you're an American, you need to pay approx. 15% self-employment tax on the net profit of self-employed earnings, regardless of where you earn it, i.e. even if you're living abroad and none of your clients are US-based. The one way around this is to pay the social security taxes of the country where you live.
A woman named Jane Brunno (sp?) wrote a book titled along the lines of "Tax tips for the expatriate" which is worth checking out. ▲ Collapse
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NGK
United States
Local time: 21:47
| Tax Liability in the United States | Dec 10, 2003 |
A quote from http://www.germany-info.org/relaunch/business/taxes/tax_liability.html (refers to Americans living in Germany, but I'm sure it applies for Spain as well):
As a U.S. citizen, you remain subject to tax on your worldwide income in the United States regardless of your place of residence. The U.S. Internal Revenue Service Representative at the U.S. Embassy in Berlin (tel. 01149-30-8305-1130) will advise you of your filing obligations. As a general rule, the IRS will exempt foreign earned income of up to $76,000 in 2000; $78,000 in 2001; and $80,000 per year thereafter (earned income or income from self-employment), if your stay outside the United States exceeds 330 days and if you are not a U.S. government employee. German taxes paid on non-exempt earned and other income will generally be credited toward your U.S. tax. As the German tax burden is often higher than that in the United States, most taxpayers will not have to pay additional U.S. tax over and above the tax they are required to pay to the German authorities.
| | | | mbc
Spain
Local time: 03:47
Spanish to English
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TOPIC STARTER | thanks again | Dec 10, 2003 |
thanks to all of you. (what a bad topic though...)i will keep you posted on any further complications/developements...
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You might want to look at the IRS website, it has all the latest info. Most embassies also have an IRS officer who can help you. Even if you pay taxes in your country of residence, unless you are a dual citizen you are required to pay Social Security in the US if you are freelance, which becomes very tricky. I am required by Italian law to pay INPS (Italian SS) and the US government says I have to pay SS...I was told to get a statement in writing from the INPS office and send it to the SSA.
... See more You might want to look at the IRS website, it has all the latest info. Most embassies also have an IRS officer who can help you. Even if you pay taxes in your country of residence, unless you are a dual citizen you are required to pay Social Security in the US if you are freelance, which becomes very tricky. I am required by Italian law to pay INPS (Italian SS) and the US government says I have to pay SS...I was told to get a statement in writing from the INPS office and send it to the SSA.
Good luck ▲ Collapse
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