Hi,

First, I want to express how glad am I that I found this website and this forum particularly. This is what I really need now. Hopefully someone can help me with my tax situation. I went to H&R Block, and they almost have no clue on my current situation. Here's my case:

I am an international student from Indonesia, started college at Pensacola, FL in 2003, graduated in May 2006. From June 2006 - June 2007 I was working in San Jose, CA under OPT, and going back to school in FL for MBA from June 2007 - present.

Now, I'm faced with 2 source of income. My previous employer in CA gave me 1099-MISC for $18,000 -as self-employed, and my current employer in FL (I'm working on campus) gave me W-2 for $3500 with $200 federal income tax withheld. If I'm not wrong, I should be still considered as FL resident all along since I still have my FL ID even when I was in CA for a year.

How should I file my tax? I know that US and Indonesia have this treaty with $2000 tax exempt. How do I incorporate this in my tax? I've done some research, and it says that I have to file Form 8833 to claim this tax treaty. Is that true? Also, should I also file Form 8843 along with my Form 1040NR?

I would really appreciate your help.

Thanks,
Steven

1. You will file nonresident tax return. You will get deduction of $2,000 as per tax treaty. You will also get itemized deductions like state income tax. You will also file Form 8843.
Read more on nonresident filing: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

2. You will report your 1099-Misc income on Schedule C (Form 1040). You can deduct your job related expenses on the form. Your income is NOT subject to SE tax.
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)

3. No if you lived in CA for 2007, you will file only CA tax return.

How about form 8843 and 8833? Do you know anything about it?

Thanks.

As written in my previous post, with your nonresident tax return you will also file Form 8843. You don't file 8833.

Ok, I just sent my Income Tax today. Thanks for your help MukatA. I really appreciate it.

Something bothers me though. Is it lawful for me, as an F1 student, to still work outside campus as a self-employed? My previous employer still asked me to help him in his business, and I'm still receiving payment from him. Since everything can be done online, I still keep this side job until now. Most likely he will send me another 1099-Misc for what I earned at the end of this year.

Thanks.

If your previous employer's job was legal last year, then how can it be illegal this year?

My employer is still legal. What I mean is can I, as F1 student, still working for him? My OPT ended last year. I'm now going back to school as a full-time student for my master degree, so I'm not using OPT anymore now.

Thanks.