1099 for Foreign Contractors: W-8BEN, Not 1099-NEC

Forms 1099-NEC and 1099-MISC are for payments to US persons. A contractor who is not a US person gives you a Form W-8 instead of a W-9, and is not reported on a 1099.

The short answer

US person, anywhere in the world: a US citizen or resident gives you a W-9 and gets a 1099-NEC like any other contractor.
Foreign person with a valid W-8: exempt from Form 1099 reporting and backup withholding.
Work done in the US by a foreign contractor: US-source income, generally subject to 30% withholding and reported on Form 1042-S, unless a tax treaty applies.

W-9 or W-8BEN?

Ask every new contractor which form applies. US persons, including US citizens living abroad, complete Form W-9. Foreign individuals complete Form W-8BEN, and foreign businesses complete Form W-8BEN-E. Keep the form on file. Publication 515 says foreign persons who give you a valid Form W-8 are exempt from backup withholding and Form 1099 reporting.

Where the work is done decides the source

For personal services, the place where the work is performed decides whether the income is from US sources. Where the contract was signed, where you pay, and where you are based do not matter.

Work done entirely outside the US is foreign-source income. It is not US-source income subject to the 30% withholding rules.
Work done in the US is US-source income. Payments to a nonresident alien contractor are generally subject to 30% withholding and reported on Form 1042-S, not on Form 1099-NEC.
Work done partly in the US is split, usually by the number of days worked in the US.

A tax treaty can reduce or remove the withholding on US-source pay. The contractor claims it on Form 8233, which you review and send to the IRS. Publication 515 has the details, and a tax professional can confirm your case.

What this means for your IRIS file

Leave foreign contractors with a valid W-8 out of your 1099-NEC CSV. If a contractor gave you a W-9, they are a US person: include them with their US TIN, even if their address is abroad. Form 1042-S has its own IRIS template. See the 1042-S CSV template.

Frequently asked questions

Do I need a 1099-NEC for a freelancer in another country?

Not if they are not a US person and gave you a valid Form W-8BEN or W-8BEN-E. Foreign persons with a valid W-8 are exempt from Form 1099 reporting.

What about a US citizen who lives abroad?

A US citizen is a US person wherever they live. Get a W-9 and file a 1099-NEC if the payments meet the threshold.

When is Form 1042-S needed?

Generally when you pay a foreign person US-source income, such as pay for work done in the United States.

Sources

Last reviewed November 1, 2026.

Do foreign contractors get a 1099?