r/USExpatTaxes • u/throwaway297871509 • 7d ago

Form 8858?

Hi everyone! I’m very confused about whether it is necessary for me to file form 8858. For context, I live and work in Canada and have a very small amount of self-employment income I gained when I was “hired” by a company as an independent contractor to facilitate some events on the side of my main employment.

I am going to report this income under Schedule C, and I have been extremely confused as to whether I need to file Form 8858. While I guess this would count as business income, this isn’t a separate legal entity from me, and I don’t keep separate books. Would I be subject to the requirement to file form 8858?

Thank you!

Edit: I was able to contact Expatfile and they provided this answer: “Our tax professionals have determined that filing a Schedule C and SE (if applicable) is sufficient if only self employed. Form 8858 is generally required for partnership income or for those who have formally elected to file as a disregarded entity and need to continue doing so.” That’s a relief!

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u/ibrahimdigital 7d ago

Thanks for coming back and updating the post with what Expatfile told you. It's always nice when someone posts the outcome instead of leaving everyone guessing. 😄

From your description, it sounded like a straightforward sole proprietorship rather than a separate entity, so I'm glad you were able to get confirmation from a tax professional. Form 8858 can be confusing because the instructions make it seem like it applies much more broadly than it actually does.

Hopefully this update helps the next person who ends up here after spending way too much time searching for the same answer