If someone from another country has a bank account in the USA, and I am sending funds there monthly for services, will they have to pay USA taxes on that? Any help is welcome.
If you pay them more than 600 dollars in a years time.. you need to have them fill out some form..i forgot what it's called..
Yes, they will have to pay taxes. It would be best to ask a tax attorney or accountant as there are many ins and outs to tax law. I believe the form most individuals fill out for taxes is the W-8. U.S. companies are required to report any income payees make in tax year over $600 to the IRS. But if you don't live in the U.S., I highly doubt this applies to you.
If you are paying someone in the U.S. to do work for you, then it counts as income for that person. Normally in cases like this it is up to the person receiving the payment to determine whether or not taxes are owed. Depending on how much money he is paid and his tax filing status, he may or may not file taxes. You are supposed to pay tax on payments you receive for doing odd jobs and such in your income taxes. My guess is work done over the Internet, unless the money earned is a sizable sum, would fall under this. Generally, most people only make a little bit of money doing odd jobs and thus don't report it to the IRS. But technically they're supposed to.