If you are self-employed, you must account for your income and expenses when filing your taxes. Your income must be reported on a tax form known as Schedule C, which is filed along with your personal tax return.
You will need to have a record of your income and expenses for the year in order to complete this form. This can include receipts for business expenses, records of payments made to contractors or employees, and any other records pertinent to your business.
Self-employed: If your net earnings from self-employment are $400 or more, you must file a return even if your gross income is less than the amount listed in the table above for your filing status.
Self-employment can be done in a variety of ways. In America, you may have an LLC. Or a BV in the Netherlands, or perhaps you are self-employed elsewhere. Tax returns for a corporation or an American with an interest in a corporation are frequently complicated. Partly due to changing laws and regulations, but also because America taxes corporate profits. It is necessary to involve a professional CPA.
America also has a GILTI tax and the Tax Cuts and Jobs Act (TCJA), also known as the Toll Tax. It is prudent to consult with a CPA about how to develop a good strategy for managing your company(s) now and in the future, both locally and in relation to the US.
Expats Overseas has a large network of CPAs with the necessary qualifications, experience, and cost-effective services. Contact us for a free and no-obligation discussion of your options.
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