Which tax forms should I complete?
[ACCORDION] I am an American citizen
If you confirm that you are an American citizen and taxpayer, we'll collect the necessary information to generate the W-9 form for US citizens that are working for US-based clients.
The collected information will help us generate a 1099-NEC for you.
[ACCORDION] I am not an American citizen, but I am working as a contractor for American clients
If you are a contractor outside of the US but have contracts with US-based clients, you will first need to confirm that you are not a US resident. You will see the following screen:
We will generate a W-8BEN for you, which states that you are not a US citizen and will not pay US taxes.
What kind of entity should I select?
[DROPDOWN] Select an option from the dropdown to learn about entity structures.
A corporation is a recognized legal entity that is separate from its owners. Owners are issued stock. Owners are not personally liable for the corporation's debts.
[DROPDOWN-OPTION] Disregarded entity
A disregarded entity is a legal entity separate from its owner but may elect to be treated as part of its owner for US tax purposes. Some sole-proprietorship LLCs with only one shareholder are treated as a disregarded entity by the IRS and must file as an individual.
A partnership is the relationship between two or more persons who join to carry on a business together.
[DROPDOWN-OPTION] Simple Trust
A simple trust is an arrangement under which a trustee holds property for the benefit of one or more persons called beneficiaries. In a simply trust, all of its income must be distributed currently, and none of its income may be devoted to charity.
[DROPDOWN-OPTION] Grantor Trust
A grantor trust is a trust in which the individual who creates the trust is the owner of the assets and property for income and estate tax purposes
[DROPDOWN-OPTION] Complex Trust
A complex trust is a trust that is not a simple trust or a grantor trust.
An estate holds the assets of a deceased person until distribution to the heirs.
A non-US governmental entity not engaged in a commercial-financial activity (for example, the Ministry of Finance, Embassy, or a Consulate).
[DROPDOWN-OPTION] Central Bank of Issue
A central bank is an institution in a country that issues the currency
[DROPDOWN-OPTION] Tax-Exempt Organization
A tax-exempt organization is an entity that is exempt from tax under the Internal Revenue Code
[DROPDOWN-OPTION] Private Foundation
A private foundation is a legal entity that is set up only for specific charitable purposes
[DROPDOWN-OPTION] International Organization
An international or supranational organization is an organization whose income does not benefit private people (for example, the World Health Organization).
[ACCORDION] What happens if a US contractor gets paid in a non-USD currency?
Deel calculates the USD income using the rates supplied in the invoice data. Any extra amount we add is also added to the total. Both will be displayed in USD.
[ACCORDION] What if I am a non-US client and don't see the ability to file?
We may not have been able to generate 1099s for your contractors due to missing information (such as no TIN/EIN number). But your contractors can still report their self-employment income on Schedule C, without a 1099.
[ACCORDION] Will non-US contractors get a summary report of earnings for a given tax year?
We do not generate summary reports of earnings to non-US contractors.
But we do show the total amount in their Taxes tab next to their previously filled W-8BEN form. This will be displayed in USD.
[ACCORDION] Did you submit a W-8 BEN and don't see your 1099?
That's expected! You're all set and don't need to do anything further.
Note: Payments to independent contractors were reported with Form 1099-MISC until the IRS introduced 1099-NEC for tax reporting in 2020.
[ACCORDION] Are you working for a non-US client and don't see your 1099?
That's ok. You can still report your self-employment income on your Schedule C, without a 1099. Please see the full details here.
[ACCORDION] What happens if a contractor fails to file the required 1099-NEC form?
Please check the IRS website for latest information.
Should I file a W-8BEN or a W-8BEN-E?
[ACCORDION] You should file the W-8BEN if you are:
- An individual
- An independent contractor
- A sole proprietor
[ACCORDION] You should file the W-8BEN-E if you are:
- An entity
- A company
- An organization
- A trust
If your company is strucutured as a limited company or if you have multiple employees, you should file the W-8BEN-E
Please note that the IRS requires contractor LLCs with only one shareholder to file as an individual.
[ACCORDION] I'm a contractor entity, why am I being asked to complete the individual form?
The IRS disregards certain entities for tax filing purposes. An entity is disregarded if the following conditions are met:
- the contractor type is company
- the entity is LLC
- there is only one shareholder in the company
In these cases, the contractor type will be required to complete the individual form.
What is my FATCA status for W-8BEN-E?
[ACCORDION] Active NFFE
An Active NFFE is for an entity that has less than 50% of its gross income from the preceding calendar year from passive income, and less than 50% of the assets held by the NFFE are assets that produce or are held for the production of passive income. Examples include restaurants, retailers, etc.
[ACCORDION] Passive NFFE
If the entity does not qualify for Active NFFE status, it must be classified as a Passive NFFE. Generally speaking, passive income is the portion of gross income consisting of dividends, interest, annuities, rents, and royalties, and other passive types of income that are not derived in the active conduct of trade or business.
If you are interested in knowing more about IRS forms W-8BEN & W-8BEN-E, we suggest you look at our comprehensive guide about them. Please check IRS's websites to find official instructions: W-8BEN and W-8BEN-E.
[ACCORDION] What if I am not filing as an individual?
If you are not filing as an individual or have a unique circumstance, please refer to the IRS's W-9 form for guidance.
[ACCORDION] Do I need a W-9 Form if I am not an American citizen?
A W-9 is required for US citizens or US taxpayers, regardless of their location.
If your tax country is the US, you will need a W-9 even if you are not an American citizen.