Hi there,

I started working as an independent contractor last November and never thought
Of the fact that being a 1099 contractor would mean different tax obligations.
I received one paycheck for this totaling 1980 in December and was sent a 1099-Misc
For this.
I didn't know about estimated payments will just a while ago and now I guess I'll be
Hit with a double penalty for not filing and not paying my state and federal taxes.
I'm just very confused how to compute the 1099 income along with some money I earned
Earlier in the year as an employee working for my college. Furthermore, what forms
Would I have to file for the 1099 for last year, and the estimated payments quarterly
For this year?

I just wanted to add some more details to clarify my situation:
- I was a full time student from August 2005 to June 2010
- My actual visa for entering the country expired, but I am on OPT status
Until August of this year.

So some further questions would be:
- am I still exempt from FICA or self employment taxes as I am under an F-1 status?
- I was going to file just a 1040, but should I be filing a 1040 NR instead?(I have
Been present in the US for all of the last year)

I just want to say thanks in advance for any help I get here.

Because you arrived in 2005, your exempt status expired on 31 December 2009, so, for 2010, you are a resident alien for tax purposes.

You should file Form 1040 with Schedules C and SE.

The amount received seems low. You do not have to be concerned about estimated tax payment.

Indian CPA
Home - Indian CPA (http://www.indiancpa.com)

I agree with Indian CPA that for 2010, NO estimated payments are required due to the low amount of income received.

However, if the 2011 income exceeds $5,000, then quarterly estimated payments will be needed.

Hello Atlanta Tax Expert and Indian CPA,

Thanks for the answers. I did not have to pay for last year, but This year my total income
From being a contractor totals to approximately 19160 and I've already overpaid on my first
Quarter, so I should be set. I just got to being a W-2 employee and will have my taxes
Withheld from now on.


Again thanks for helping me out with this question.

- Eric D'Mello

Glad to help!