Hi,
Here is my situation

1) I've been on J1 since 1999
2) I've been filing 1040 for 3-4 years now since I think I am now an alien resident for tax purpose
3) I always worked in school and got W2 and no problem with tax

4) Last year, I mistakenly worked for a website as an independent contractor (an online tutor). I thought it was OK since I am not their employee. Then I somehow talked to my school and they said I shouldn't work outside school no matter whether I am an independent contractor or not. So I quited immediately. The website sent me a 1099-MISC and report on box 7 that I got $176.82 nonemployee compensation for what I worked with them before I found out I shouldn't have worked with them.

I guess I should file it, right? Both with IRS and PA?
Is this going to affect my visa status or it doesn't matter?

Thanks.

IRS and your Visa status are two different issues.

As far as IRS is concerned you must report your 1099-MISC income, otherwise chances are very high that you will get a letter from IRS, may be after one or two years. To report 1099-MISC income, you will file schedule C (Form 1040). This income is subject to 15.3% SE tax. For this you will file schedule SE (Form 1040).

I see. So I have to file that with IRS.
Since I use the tax software online, it has already filled in the schedule C and schedule SE for me.

Thank you so much for this clarification.

Another question is that will IRS reports this kind of situation to the immigration office? If they will, I want to prepare for it; I know I have to be responsible for my mistake. But if they will not, I can breathe much better and I know I have to be very very careful next time I do things in this country.

As far as the IRS is concerned, you are a resident alien and have been since 2001.

I suspect that the USCIS/ICE will NOT really care about your 1099 job because you have been in the country for so long.

Oh~ Thank you so much everyone :) I really appreciate your help :)

Further, with only $176 on the Form 1099-MISC, you can find AT LEAST that many expenses to claim on the Schedule C to completely offset any taxs owed.

Oh I see.

I did the Schedule SE and it says that if the self-employment income is less than $400, I don't owe any self-employment tax and do not have to submit Schedule SE. The 1099-MISC with $176.82 is the only 1099-MISC form I get. So I do not have to pay the self-employment tax, right?

Moreover, my adjusted gross income was far less than deduction + exemption. So it's the case that I do not owe IRS any tax last year. (Well, I am just a student working part-time to get some extra savings.)

Thank you so much again for your help :)

That is correct; no SE tax is due.

If your personal exemption and standard deduction covers this extra $176, then just enter it as the amount received on the Schedule C and file it. The IRS will not even look twice at your return.