optcontractor
Dec 31, 2009, 06:43 PM
Hi,
Before I proceeed to my questions, here is a brief description of my situation:
I came to the US to do an MBA on July 26, 2007. I graduated from my MBA program on May 10th, 2009 and began my OPT on July 10th, 2009. From July 10th, 2009 to November, 30th 2009, I worked as an independent contractor,where my client did not withhold any taxes and paid me my gross salary.
Onto my questions:
1. Does being on OPT also count as being on F-1 and hence do these days count as being an exempt individual ? I ask because some websites say that being OPT is the same as being a F-1 student, however, some other sources say that you need to be a "full-time" student in order for you to count toward the exempt days.
2. Will I be considered a resident or non-resident alien for tax purposes ?
3. Is it legal to work as an independent contractor during the OPT period
And not have taxes withheld ? I thought that it is legal ( as per immigration and tax law) to work as an independent contractor while on OPT, however a CPA I spoke with (very briefly) said that people on OPT are not permitted to work as independent contractors. Additionally, I also saw a posting on this forum saying that if you consult/contract for a company other than your sponsor ( in my case, my University),
Then it is violating the law. However, I see that many universities list on their website that working as an independent contractor during OPT is perfectly OK. Example here: Types of OPT Employment (http://internationaloffice.berkeley.edu/students/Practical_Training/OPT_employment_types.php)
What is the opinion of the other forum members on this topic ?
3. When should I pay my taxes ? i.e. can I pay by April 15th or should I pay on a quarterly basis as-if I am self-employed ?
I ask this question because, as I mentioned, my client did not withhold taxes during the 5 month consulting engagement.
4. Will I be exempt from Social Security and Medicare taxes ?
I look forward to hearing from you.
Before I proceeed to my questions, here is a brief description of my situation:
I came to the US to do an MBA on July 26, 2007. I graduated from my MBA program on May 10th, 2009 and began my OPT on July 10th, 2009. From July 10th, 2009 to November, 30th 2009, I worked as an independent contractor,where my client did not withhold any taxes and paid me my gross salary.
Onto my questions:
1. Does being on OPT also count as being on F-1 and hence do these days count as being an exempt individual ? I ask because some websites say that being OPT is the same as being a F-1 student, however, some other sources say that you need to be a "full-time" student in order for you to count toward the exempt days.
2. Will I be considered a resident or non-resident alien for tax purposes ?
3. Is it legal to work as an independent contractor during the OPT period
And not have taxes withheld ? I thought that it is legal ( as per immigration and tax law) to work as an independent contractor while on OPT, however a CPA I spoke with (very briefly) said that people on OPT are not permitted to work as independent contractors. Additionally, I also saw a posting on this forum saying that if you consult/contract for a company other than your sponsor ( in my case, my University),
Then it is violating the law. However, I see that many universities list on their website that working as an independent contractor during OPT is perfectly OK. Example here: Types of OPT Employment (http://internationaloffice.berkeley.edu/students/Practical_Training/OPT_employment_types.php)
What is the opinion of the other forum members on this topic ?
3. When should I pay my taxes ? i.e. can I pay by April 15th or should I pay on a quarterly basis as-if I am self-employed ?
I ask this question because, as I mentioned, my client did not withhold taxes during the 5 month consulting engagement.
4. Will I be exempt from Social Security and Medicare taxes ?
I look forward to hearing from you.