My US based LLC hired an independent contractor from China for some film work. Taxes were not withheld from the contractor’s payment. They will get a 1042-S to indicate this. As a nonresident alien with US income (and assuming no other income from the US), will the contractor need to file a US tax return? Or, can they simply report in China? The total amount paid to the contractor was $1500.
In researching this question, I found this Taxation of Nonresident Aliens page from the IRS. It seems wages "less than the personal exemption amount" would not require the contractor to file a US return. Does that apply here? If yes, what is that amount?
- The independent contractor worked remotely from China.
- Wikipedia says that "The Tax Cuts and Jobs Act of 2017 eliminates personal exemptions for tax years 2018 through 2025."