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Question for the Money Doctors

Question submitted on Oct 4, 2013.

Question

Hello,

I am not even sure am I asking on a right place, but I''ll give it a try. Thank you very much in advance.

I was given opportunity to teach on-line course for Portland State University. I am citizen of Republic of Serbia, living in Serbia, - can I work for US University? Do I need to obtain some special permit or something like that? I used to come to States and teach with J1 visa which allowed me to work and be paid. In this situation I will do that from foreign country.

Answer

This is a very good question and in this global economy, we'll be encountering this issue more often.

This will depend upon your arrangement with the university.&nbsp

As a non-resident alien of the United States, you are taxed in the US on income that is performed in the US or from property in the US (such as a business or real estate). Accordingly you should not be owing any income tax in the US. However, you will be responsible for your tax obligations in Serbia.

Take a look at Publication 519 from the IRS.

Also take a look at Form 1040NR and its instructions.

If you are hired as an employee of the university, you will be subject to all the usual employment laws. However, if you are not physically working in the state of Oregon and your work is all performed out of Oregon, there should be no Oregon income tax on your income.

If you are hired as an independent contractor, then there are no employment tax obligations.

The university may already have experience with this with other instructors so please talk to them about your situation.

I cannot address your visa question since we cannot address immigration law issues. There may be different issues if you are an employee vs. independent contractor.

I hope your course is a success!


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