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Legal Issues

rmksalem
Active Member
Rasheed S Member Since: Nov 10, 2016
1 of 10

Hi Guys,

 

 

My name is Rasheed Salem, and I'm new to UpWork, and super exicted to start working.

 

I do have one major question before I start, regarding the legal issues of me getting paid. Basically, this is the scenario:

 

I'm a 22 year old Egyptian, working from my home in Egypt. When asked to enter the legal name of my entity, and since I'm just a freelancer with no legal company, I just wrote my name. I then proceeded to check the box that proves that I am aware of the legal scenarios/issues etc. of the United States. I plan to get paid through paypal. My question is: What is my taxes situation? Am I required to pay any taxes to the US, and if so how can I do that? Am I required to declare the money I amek anywhere?

 

I would appreciate any help regarding my situation.

 

Thanks in advance.

 

Best

Rasheed

holland-jared
Active Member
Jared H Member Since: Nov 4, 2016
2 of 10

I'm sure you will have to claim the amount in the United States somehow (online I'm sure). 

 

You will most likely have to make over $4,000 to actually need to claim it though. 

rmksalem
Active Member
Rasheed S Member Since: Nov 10, 2016
3 of 10

Thanks for the quick reply. I just searched a bit on UPwork and stumbled upon this "Form W8-BEN".. which is a form for non-US taxpayers. When I fill out and it is approved by Upwork, I am allowed to access my earning w/o upwork withholding any for tax purposes, or at least that's what I understood.

 

Does'nt this mean I'm free to declae my taxes in Egypt? I still fail to understant why I would have to pay U.S taxes.

 

But thanks again for your help, much appreciated.

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
4 of 10

Hi Rasheed,

 

As Petra explained, you are responsible for paying taxes in your own country not in the USA.

~ Valeria
Upwork
katrinabeaver
Community Guru
Katrina B Member Since: Jan 9, 2011
5 of 10

@Jared H wrote:

I'm sure you will have to claim the amount in the United States somehow (online I'm sure). 

 

You will most likely have to make over $4,000 to actually need to claim it though. 


Jared although you are trying to help plz note your profile pic is against Upwork's ToS.  You need to change it to u and u only 

"Fairness is giving all people the treatment they earn and deserve. It doesn't mean treating everyone alike-Coach John Wooden"
petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
BEST ANSWER
6 of 10

If you are not a US resident or citizen (even abroad) you will NOT have to pay any US taxes. That is the whole point of signing that you are not a US citizen / resident.

 

You will have to declare any income you make to your local tax authorities obviously, but you will need to speak to an accountant in your own country and seek advice from your local tax authorities as to how to actually do that.

View solution in original post

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
7 of 10

Rasheed:

You're very generous to wonder if you might owe taxes to a country you don't live in and are not a citizen of (perhaps because this is where Upwork is based).

 

Fortunately, you don't owe anything here. (The IRS isn't THAT avaricious!)

 

BUT... If you really want to, you may freely DONATE money to the U.S. government.

 

Read: How do I make a contribution to the U.S. government?

versailles
Community Guru
Rene K Member Since: Jul 10, 2014
8 of 10

@Preston H wrote:

 

Read: How do I make a contribution to the U.S. government?


This is one of the most awkward things that I have ever seen.

 

But why not after all 🙂

 

Wait, I know why not suddenly. Oh gosh... 😞

-----------
"Where darkness shines like dazzling light"   —William Ashbless
rmksalem
Active Member
Rasheed S Member Since: Nov 10, 2016
9 of 10

Haha! Thanks for the heads up for how i can donate the little money i make to the U.S

 

But, seriously, thank you for your reply 🙂

rmksalem
Active Member
Rasheed S Member Since: Nov 10, 2016
10 of 10

Thanks a lot! This was of much help!