Assistants Working Abroad

Hello June,

Thank you for the great site! I've just ordered your book, Self-employed Tax Solutions, from Amazon and cannot wait to read it.

I've read almost every post on your blog and found a question similar to mine, but there is a difference so i still wanted to ask. I do freelance web and graphic design. I order illustrations for my projects from an artist friend. She is not US resident, she lives in Israel. I pay her through PayPal or sometimes cash. Can i deduct the fees?

And if yes what kind of receipts/records do i need? Are PayPal receipts enough?

In your answer to Charles (Cruise Entertainer...) you say: "His payments to them are business deductions and all he must do is keep a record of payment. No 1099 is required. This is because the work is being performed outside the US."

But in my case, while her part of work is performed outside the US, me and my clients are in the US... What should i do?

Thank you so much,
Rina

New York


Dear Rina,

Glad you like my site. Thanks for letting me know. And I'm sure you will get lots out of my book.

Yes, you may deduct the fees. Print out your PayPal receipts and also keep a written record, of what you paid her for -- perhaps a copy of the illustration.

There is paperwork to do -- but of course! Be sure to read my post When your subcontractors are in India for guidelines.

Best,
June