Hi Tax Experts,

I am in a dilemma to decide where to put Non-employee compensation income from 1099 Misc. Here is my information -
Indian Citizen on F-1 Visa
Graduated in Dec 2008
Had a job offer to join company from Feb 2009

The offer was rescinded in Jan 2009 and the company paid $3000 as a non-employee compensation which is reported in 1099 Misc form box # 7 (no taxes with held).

I am confused on where to report this income either on Schedule C (1040) or on 1040 NR's Line 20 (Unemployment compensation in excess of $2,400)?

I was in NC when I received cheque from the company, but moved to a diff state from May 2009. Do I need to file NC State tax forms as well, as I don't have any income from NC? Box # 17 of 1099 Misc (State / Payers State No) is NC

I would really appreciate if some one can help me out.

Thanks in advance!

~Vishal

1099-misc income is not unemployment compensation. It is normally reported on schedule C or C-EZ (Form 1040). Since for you this is not subject to SE tax, you may report it as other income.

For state tax return, your income may be less than the filing requirement.

Thanks a lot MukatA - to the point, short and sweet answer :)