I am an Indian student worked full time during CPT(Curricular Practical Training) and OPT for almost an year. I worked as an independent contractor for the entire time. I made around $97,000 which is now reported on the 1099-misc form. I will be filing 1040NR and Schedule C. I have also incurred expenses of around $14,000 in car, food and travel. Now my question is can I claim itemized deduction of $5,150 and a standard exemption of $3,300(for f1 student under tax treaty) + the expenses under schedule C.

Am I in a legal situation with regards to filing taxes or should I have worked on W2 for the entire time??

Thanks!

AtlantaTaxExpert

Yes, you CAN claim the Standard Deduction of $5,150 (as allowed under the U.S.-India Income Tax Treaty) and your $3,300 personal exemption, PLUS claim the expenses allowed on Schedule C as a direct deduction off your $97,000 income documented on the Form 1099-MISC. There is nothing illegal about these deductions.

Now, visa law seems to say that paying a student on CPT as an independent contractor is not allowed, but YOU have control over that. That violation of the visa laws rests with the employer. You are merely claiming the deductions allowed under the INternal Revenue Code.