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Danish resident receiving self employment income from US

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Level 1

the client had self employment income from a US Company and received 1099.  She has lived in Denmark for 2 years.  Does she have to pay social security taxes to US?  Her husband works for a company in Denmark, and received W2.  They filed their taxes in Denmark, and paid taxes in Denmark.

Does she take off the income taxes that were paid to Denmark?

Do I need to fill out a 2555? 

 

 

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5 Replies 5
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Level 11

It would help if you told us her citizenship

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Level 15

and where the work was performed.


ex-AllStar
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Level 15

There are a lot of questions that need to be asked...

She is self-employed as in running a business as a sole proprietorship?

What is the type of legal entity that business is registered as in Denmark?

Does she have a limited liability for this business?

Did that US company enter into a contract with her business entity or her as an individual?

What type of services did she render?

Are there terms in the contract that dictate where the services were to be performed?

Where did she perform those services in relation to that contract?

You said "[t]hey filed their taxes in Denmark, and paid taxes in Denmark" but is she paying income tax to Denmark on that income she received from this US company?

Is she paying social security to Denmark (given territorial rule would apply based on the limited facts you provided)?

Is she a US citizen?  If not, is she a green card holder?

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Still an AllStar
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Level 1

She is self employed (sole proprietor)

US company entered into contract with her as an individual.

She is a special events organizer

She worked in Denmark.  Traveled to US for 5 days in 2019 for business.

She paid income tax in Denmark on income received from US company

She has dual citizenship, but a Danish resident.

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Level 15

But you haven't responded to all the questions, which are all pertinent.

Does your client also service clients in Denmark and other countries?

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Still an AllStar
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