01 Jun 09
12 May 10 11:01 am
Not legal or financial advice:
Proof of business expenses that are accepted when claiming tax deductions differ by location but generally you should have invoices from the outsourcer. If you are paying through paypal, ask them to send invoices through paypal. You can then show the invoice and the paypal transaction in which you paid it as proof of the business expense.
With xoom and bank wire payments, you can still ask them to send you invoices which you can show together with proofs of payments from xoom and the bank.
In some cases and locations, a contract or a written form of agreement between you and your outsourcer will also be required.Like I mentioned at the start of this post, this is not legal or financial advice. I am neither a lawyer nor a certified public accountant. You should consult a tax professional in your area.