• Where can I claim Foreign Taxes Paid expense on my Schedule C?

    From quilt192@gmail.com@21:1/5 to All on Sun Apr 14 04:36:54 2019
    Where can I claim this “expense credit”, if applicable?

    I am a Schedule C business (self-employed) in the entertainment industry (711100 IRS business code category). I get only 1099-MISC and no W2’s. I will use general numbers in my example:

    I earned $5,000 gross for a performance, of which my manager gets 20% commission. Since the performance took place in a foreign country, the $5,000 gross amount was assessed with local country $600 taxes. But on the 1099-MISC that is sent to me by
    the manager, I am shown to earn $4,000 for the performance ($5,000 – 20% = $4,000). The manager passes on the whole $600 tax bill onto to me. My agreement with the manager is that they sent me just one 1099-MISC at the end of the year for all
    concerts performed and paid, and the manager does all of the contracting, bookings and gets paid directly by the presenter that hires me. I was aware that any taxes are my responsibilities so this did not surprise me. My questions:

    1) Where can I show a $600 foreign tax “expense” on my Schedule C against rest of my 1099-MISC gains? Is it under Miscellaneous Expenses (line 48 on Schedule C)?

    2) If the tax amount is assessed instead by a US state (let’s say CA or CT) rather than a foreign country, do I show this “expense” in the same place on my tax filing as question #1?

    3) How do I describe this to the IRS? Do I use the words “Foreign Tax Payments / Local State Payments”?

    Thank you everyone for your help.

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