PDA

View Full Version : Independent contractor if F-1, no 1099


tears_over_taxes
Feb 28, 2007, 09:07 PM
Hi,

I am an F-1 student on OPT. I worked part-time for several companies over the past year, and I received forms (1099-Misc, 1042-s) from a couple of them.

I also worked as a tutor (literacy, reading) for a couple of families. There was no discussion about taxes in the beginning, and they were paying me cash. I understood it to be that I was responsible for reporting all my income as an independent contractor. I told the family I am filing taxes, but they are worried about the consequences for them, since we agreed that some of my duties were "babysitting" duties (to play with the child in between study, or to use play when I teach). I told them I think I qualify as an IC, since I work for more than one family, and I make my own lesson plans. Is that correct?

Our potential "problems":
1) I earned more than $1500 from them. Is a W-2 necessary?
2) I will not receive a 1099 from them (this is okay, right, because they were not hiring me for trade or business, but for personal reasons?)
3) My course was in literacy and English, and so I understood it to mean that I am okay tutoring the family... was it wrong for me to agree to adjunct "babysitting" duties?

I read too in some discussions, F-1s are not supposed to be ICs -- I am confused, since I have read so many other posts that says it is okay.

AtlantaTaxExpert
Mar 1, 2007, 08:44 AM
You ARE an independent contractor.

1) No W-2; Form 1099-MISC.

2) No, they SHOULD generate a Form 1099-MISC. However, you still must report the income even if no Form 1099-MISC is forthcoming.

3) Possibly, but what is done is done. Do not worry about it.

It is NOT okay, but the IRS will not care. All they want is the income to be reported and the taxes paid.