Hello,
I was on F1 status through 2005. I worked till April as an independent contractor at my company and have an 1099-MISC for that period. Later, I was employed full time and have the corresponding W-2 form.

I used an automated tax preparation software (Cintax) provided by my university to generate the 1040-NR filing. The 1040-NR reports the 1099-MISC income in line 21 (Other income) as opposed to line 13 (Business income). Is that OK or am I required to use line 13 and attach Schedule C-EZ? Please let me know.

I am not claiming any deductions such as business expenses etc.

Thanks in advance.

Yes, it should go on line 13 and you should attach Schedule C. But as a practical matter since you are not claiming any deductions or business expenses, it does not really matter. As long as you report it and include in gross income, it should be OK. The tax is still the same either it's on line 13 or on line 21.

Vaya

Vaya is technically correct, but the IRS expects to see that Schedule C when the Form 1099-MISC income exceeds $600, so file the Schedule C.

Thanks for the information. I submitted schedule C-EZ along with the rest of the forms.

Glad to help!

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Originally Posted by vaya

Yes, it should go on line 13 and you should attach Schedule C. But as a practical matter since you are not claiming any deductions or business expenses, it does not really matter. As long as you report it and include in gross income, it should be ok. The tax is still the same either it's on line 13 or on line 21.

Vaya

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VAYA is wrong! The tax is not still the same. If you put the income on line 13 you are subject to SE Tax. You are not subject to SE tax on line 21. You must put income on Schedule C if your primaary purpose is to earn a profit and your activity is regular and not sporadic or hobby.

RENBUCKER:

International students on F-1 visas are NOT subject to SE tax, no matter how much is on the Form 1099-MISC.

Actually, international students should not be getting 1099s because they are not entitled to work as independent contractors! Hence the question of self-employment tax for an F1 visa holder should be a moot point...

Taxsearcher:

Agreed. But the fact remains that many F-1 visa holders get handed a Form 1099 instead of a W-2 when they do OPT or CPTs. It's not right, but the student is hardly in a position to challenge the employer on his payroll policies.