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View Full Version : Non Resident filing taxes with W2 and 1099 misc


dtsykes
Apr 9, 2008, 08:59 PM
Hi,

I am an F-1 student in New York currently on OPT. I worked a few jobs in 2007, and received W-2 and 1099 Misc forms. As I understand it I need to file 1040NR, along with Schedule C. However when I fill in my earnings on the 1040NR I end up owing money, as the form does not seem to take into account the fact that non-residents are not subject to self employment tax (ie. My income on the 1099 Misc).
Please advise me on how to reconcile this.
Many thanks,
DS

MukatA
Apr 10, 2008, 01:02 AM
Your 1099-Misc income is not subject to SE tax. Most of the software do not do nonresident tax return.

dtsykes
Apr 12, 2008, 10:47 AM
Thanks. Actually I was not using any software - just filling the forms in manually. My understanding is that I include my 1099 misc earnings on a Schedule C and transfer that figure to box 13 on the 1040nr. My 1099misc earnings were more than my W2, and so on the 1040nr I end up owing taxes - which is annoying and confusing as I thought that as an NR my 'self-employment' earnings were not subject to taxes.
Last year I only filed a 1040nr-ez (and 8843), and did not include my 1099misc earnings, and got a refund. Was this a mistake? Should I be worried, especially as I am in the process of applying for a green card?
Many thanks,
D

MukatA
Apr 13, 2008, 05:56 AM
As a nonresident you pay much less tax on 1099-Misc income than a resident as you do not pay 15.4% SE tax. Yourself employed income is taxable income. You can deduct your job related expenses.
How you will treat the 1099-Misc income, read: Your U.S. Tax Return: W2 or 1099: Employee or Independent Contractor. (http://taxipay.blogspot.com/2008/03/w2-or-1099-employee-or-independent.html)

For 2006, yes you must report your 1099-Misc income. IRS data base has information of all the W2s and 1099s so you may receive a letter from the IRS. You will then have to pay tax due with interest and penalty.
It may be better to file amended tax return yourself.