I am on a F-1 visa, on OPT working in NY. I began work in January this year. Prior to that, I was in college in PA, and graduated in December last year.

As part of my employment contract, I was awarded a signing bonus that was paid out to me in November last year. The income was reported on a 1099-MISC, with the figure in box 7.

I have 2 questions - firstly, what taxes should I pay on the amount and on which form should I file those taxes? Next, if I need to pay state/city tax on the amount, which state/city should I pay taxes to?

Thank you.

1099-misc (nonemployee compensation) income: You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040.
Normally this income is subject to SE tax at 15.3% but F-1 students are exempt from SE tax.
Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor (http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html)

You will also pay NY state tax but international students are not considered resident of the NY city so your income during F-1 and OPT should not be subject to city tax.

Thank you!


1099-misc (nonemployee compensation) income: You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040.
Normally this income is subject to SE tax at 15.3% but F-1 students are exempt from SE tax.
Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor (http://taxipay.blogspot.com/2008/04/tax-filing-by-self-employed-sole.html)

You will also pay NY state tax but international students are not considered resident of the NY city so your income during F-1 and OPT should not be subject to city tax.

The bonus income (reported on Form 1099-MISC) income would be reported on Schedule C, but then the Schedule C income is transferred to Form 1040NR, not Form 1040, due to your NRA status.