Hi,

I am currently on F-1 student OPT in Atlanta, GA. I am a citizen of China.
-I first came into US as an J-1 student on Jan, 2006 and changed to F-1 on Dec, 2006 (I went back to China to change my status)

In 2008, I worked as OPT student almost the whole year. I got my 1099-MISC form. All my income are showed up in box 7 (Nonemployee compensation for 23310).

Based on my understanding, I should file Form 1040-NR. I have a couple of questions:

1. Form 1040-NR (if I am right), which line should I put my "Nonemployee compensation" from 1099-MISC on? Line 8 or line 20 or somewhere else?

2. Do I qualify for any tax treaty benefit?

3. Also any deduction? My occupation is IT consultant. My employer said any expense related to computer can be filed as deduction. I work at home sometimes. They also told me I can deduct part of my apartment rent and electric/phone bills. Is that ture?

4. Do I need to file 1040NR-EZ as I am single and no dependents?

5. I think I need to file Schedule A (1040NR), maybe 2106-EZ with it, is that right?

6. Which form else do I need to file? Form 8919 & 8843?

Thank you in advance. I would really appreciate ANY help.

1. You will report this income on schedule C or C-EZ (Form 1040). You will not pay SE tax.

2. Yes

3. Job or business related expenses can be deducted on schedule C.

4. Yes, with Form 8843

1. You will report this income on schedule C or C-EZ (Form 1040). You will not pay SE tax.



Thank you for your reply.

I am confused here.
Do I need to file Form 1040 with schedule C or 1040NR with schedule C?

File Form 1040NR with the Schedule C.

You can only deduct the computer and a portion of your apartment if exclusively used for business purposes. If partially used for personal purposes, then nondeductible.

IntlTax:

I agree with your comment about exclusivity when it applies to the APARTMENT.

However, you can use the compuer for BOTH business and personal use. You just need to properly pro-rate the usage between personal and business, then deduct ONLY the business percentage when the computer is depreciated over five years.

Agreed. And if the business use of the computer is less than 50%, special depreciation rules apply.

Agree with the special depreciation rules, but that is a bit too technical for this forum.

I don't understand why it is too technical.

It's NOT too technical for you, me, TTE, Five Rings, MukatA, etc.

It IS too technical for everyone else who uses the forum. :-)

Treaties seem pretty technical to me. More technical than depreciation.

Well wait a minute.

Since this taxpayer is here under F-1 status doesn't he get $5,000 off under US/China treaty Art. 20(c)?

Yes, he IS entitled to that treaty exemption, something I failed to address.

Good catch, Five Rings!