I work in a small company (with employees less than 10 people). My boss and I understand and follow the minimum wages and hours required to maintain eligibility of part-time H1-B (my visa started in Oct 2005).

However, the company does not withheld payroll taxes, so all employees file their taxes under 1099 (as independent-contractor/freelancer).

As far as I know, filing taxes as independent contractor/freelancer can put me out of status. Is this true for part time H1-B holder? Normally, H1-B visa holder file 1040 tax form.

What is the solution? Any help is appreciated.

Thanks in advance.

Edit:

Apparently I wasn't being clear.

I will file and pay the taxes, that's for sure. But I'm worried if I file the taxes using 1099 form I would be out of status (instead of using 1040). It's because H-1B visa holder is not supposed to be working as independent contractor.

So the question is: is it okay to file the tax of a part-time H1-B holder with 1099 form? Or must the tax be filed under 1040 no matter what?

Yours is more a LEGAL questtion than tax.

I believe that your employer is violating the provisions of the H-1B visa by paying you as an independent contractor.

You WILL have to file a Form 1040 with Schedules C and SE to pay the required income and self-employment taxes.

As to the legality, recommend you post that question on the LAW forum.