Generally, you do not issue a 1099 to a foreign person (non-U.S. citizen/resident) if they perform services entirely outside the United States. Instead, you should collect Form W-8BEN (individuals) or W-8BEN-E (entities) to certify their foreign status. If they perform services inside the U.S., you may need to file Form 1042-S.
Who You're Paying. In general terms, Form 1099-MISC is issued to everyone but corporations. This includes individuals, partnerships and most professional business entities.
Yeah, you can work as a contractor for a US company while outside of the USA. You have to give them a W-8BEN though.
Withholding when U.S. source FDAP is paid to foreign persons, called "Chapter 3" or NRA withholding – IRC 1441–1443 and 1461–1464. You are required to report payments subject to NRA withholding on Form 1042-S and to file a tax return on Form 1042.
The general answer is no, but the question is technically open to more than one interpretation. A foreign independent contractor is not a 1099 worker in most circumstances.
W-8BEN usage
The W-8BEN is the equivalent of the W-9 for used for U.S. Persons. Tax reportable payment and associated Account Codes are posted at 1099-MISC and 1042-S Tax Reportable Payments (PDF). Use Form W-8BEN for Scholarship/Fellowship Grants if a tax treaty exemption applies.
A 1099 requirement is triggered when a business pays an independent contractor or unincorporated entity $600 or more (increasing to $2,000 after 2025) in a calendar year for services, or makes other specific payments like royalties or rents, requiring the payer to report these to the IRS using Form 1099-NEC (for services) or 1099-MISC (for other income), unless the recipient is a corporation (with exceptions for law firms).
Situations that don't require 1099s
But you won't send one to the self-employed housekeeper who cleans your home. The IRS lists other non-reportable activities, such as: Most payments to a corporation or an LLC treated as an S corporation. Rental payments to property managers or real estate agents.
Whether you have a large or small business, you must send forms to all payees with the exception of corporations and any payee earning under 600 for the year. In other words, all the self-employed independent contractors you paid over $600 in rents, services, awards, or other payments need you to send them a tax form.
Many are issued a Tax Identification Number (TIN) by the IRS. The TIN may be used on Form 1099 instead of the SSN. If the contractor does not provide a TIN or SSN, leave the box for the TIN or SSN blank on the Form 1099. The IRS may impose a penalty if a 1099 form is submitted without a TIN or SSN.
All immigrants regardless of legal status are able to earn a living as independent contractors, or start a business using an ITIN or SSN. An independent contractor must pay self-employment tax and income tax. An independent contractor may use an ITIN to file and pay taxes instead of a SSN.
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If the gift is funneled through a sponsoring organization, and the check is made out to the sponsoring organization, then the 1099 MISC should be provided by the sponsoring organization rather than your organization.
Unfortunately, you could face a penalty from the Internal Revenue Service (IRS). The penalty for not issuing a required 1099 varies from $60 to $340 per form, depending on how far past the deadline you issue the form.
In general, IRS rules allow for an exemption from issuing Forms 1099 to corporations, including limited liability companies (LLCs) that are treated as C or S corporations for tax purposes.
Payments made to corporations, except those made for medical or health care services and attorney fees, are not required to be reported on Form 1099 MISC. Non-Employee payments – Non-employee payments are reported in Box 7 of Form 1099 MISC.
Exclusions from Form 1099 for business-related payments that may be taxable include payments for merchandise, inventory, freight, and storage, as well as rent payments to real estate agents. Form 1099 applies only to unincorporated independent contractors, so any payments to corporations are excluded.
You need to send a 1099 (usually Form 1099-NEC) to independent contractors, freelancers, and other non-employees you paid $600 or more for services in a tax year, like for accounting, consulting, or legal work, by January 31st of the following year; also send Forms 1099-MISC for rents, prizes, attorney fees, and other specific payments, and remember you don't send 1099s to your W-2 employees.
New 1099 rules under the "One Big Beautiful Bill Act" (OBBBA) increase the reporting threshold for Form 1099-NEC/MISC from $600 to $2,000 for payments made after December 31, 2025 (Tax Year 2026), with inflation adjustments starting in 2027, while also reverting the Form 1099-K threshold for third-party payment networks to the original $20,000 and 200+ transactions for tax years 2025 and 2026. These changes reduce the filing burden for many businesses, though all income remains taxable and must be reported by recipients.
Do you need to file Form 1099 for a foreign contractor? No, you don't need to file a Form 1099 for a foreign independent contractor, even if you paid them more than $600.
Generally, a 1099 is not required to be issued for international vendors who are foreign vendors. Individuals living outside the United States who qualify to file an IRS Form W-8BEN as foreign persons/foreign contractors and don't perform services in the United States, don't get a Form 1099-NEC.
The foreign income rule also applies regardless of whether you receive a Form W-2 or a Form 1099. Foreign source income includes earned income, such as wages and tips, as well as unearned income, such as interest, dividends, capital gains, pensions, rents and royalties.