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Hi All,
I currently live in the UAE and have a job here and I meet the qualifications for bona fide residence test. I have an opportunity to do some side work for a friends company in the USA (software development). I am trying to figure out how this would work tax wise, and cannot find any clear information.
My friend cannot contract me as a 'foreign company' he would have to contract me as an individual identified by my SSN.
So how does this work? I guess the money he pays we is just considered wages as earned in the USA. Does that mean I need to figure out and pay FICA and medicaid in addition to paying federal tax on the money? When my federal tax is computed is it going to end up being considered income over $92,900, so $1 is taxed at 28%. He is not paying me a really high rate, I am as much doing it as a favor to help him out. But there is a limit to how nice I am willing to be and if over $0.30 or so is going to tax, it may not be worth it.
Thanks
I currently live in the UAE and have a job here and I meet the qualifications for bona fide residence test. I have an opportunity to do some side work for a friends company in the USA (software development). I am trying to figure out how this would work tax wise, and cannot find any clear information.
My friend cannot contract me as a 'foreign company' he would have to contract me as an individual identified by my SSN.
So how does this work? I guess the money he pays we is just considered wages as earned in the USA. Does that mean I need to figure out and pay FICA and medicaid in addition to paying federal tax on the money? When my federal tax is computed is it going to end up being considered income over $92,900, so $1 is taxed at 28%. He is not paying me a really high rate, I am as much doing it as a favor to help him out. But there is a limit to how nice I am willing to be and if over $0.30 or so is going to tax, it may not be worth it.
Thanks
