CPT (F 1 Visa) independent contractor employment

skgowd · #1 Nov 9, 2007, 01:46 PM

Hello,

I am an international student under F-1 Visa status. I am interested in working for a company under part-time CPT. The employer however is not ready to give me a W-2. They want me to work as an independent contractor (1099 basis).

I had this employment approved by my university. My form I-20 also reflects that I am allowed to work for this employer. However, I am not sure if (as an international student) I am allowed to work as an independent contractor. I do not want to get into trouble over this. Please let me know if it is legal for me to work with this employer. Also, how do I report my taxes? Which form do I fill?

skgowd · Nov 10, 2007, 01:48 PM

Yes.. I received it. Thanks!!!

raj83168 · Jan 27, 2008, 03:03 PM

please forward me that email too, I am in the same situation

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The Texas Tax Expert · Jan 28, 2008, 08:43 AM

We've answered this many times before. It is an immigration question, not a tax question and I don't see any qualified immigration attorneys on this site.

However, you should check with an immigration attorney because the visa status does not permit self-employment and technically that is what you are engaging in.

AtlantaTaxExpert · Jan 28, 2008, 03:36 PM

I agree with TTE.

While it makes no difference tax-wise whether a F1 student works as a independent contractor or an employee, it IS a violation of the visa.

But again, it is the COMPANY's (and, by extension, the UNIVERSITY's, since they approved the job) violation, not the student's. The student has little, if any, choice, in this issue. If they protest too hard, they get fired or, at best, are NOT offered a job or sponsored for the H-1 visa by the company at the end of the OPT period.

This is another case where either some consistent enforcement of the rules by a U.S. government agency OR, failing that, a change in the rules, would fix this problem!

Karayantr · Sep 17, 2009, 04:06 PM

ok I have the same problem too right now, i am eligable to work off campus under cpt but the employer wants to sign me as independent contractor, so how can i do this without being illegal or at least just a little illegal, i really need help, i don't want to get in trouble with immiration, taxes are not big deal, i can fill forms, etc, whatever i need to fill

AtlantaTaxExpert · Sep 17, 2009, 04:15 PM

As noted in my earlier posting, you really have no choice in the matter, and neither the IRS nor the USCIS (who ARE aware of these facts of life) will hold it against you.

So go ahead and accept the positon as an independent contractor, and file the Form 1040NR with the Schedule C (but NOT Schedule SE).