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-   -   F-1 Opt to h1 (https://www.askmehelpdesk.com/showthread.php?t=22734)

  • Mar 13, 2006, 02:51 PM
    indianH1
    F-1 Opt to h1
    I was on my OPT from Jan 2005 till Oct 2005 in Texas. I switched to H-1 in October. I have received a 1099 for wages received under OPT and no federal tax has been withheld. Am I liable to pay federal tax when I am under OPT?
  • Mar 13, 2006, 03:03 PM
    AtlantaTaxExpert
    IndianH1:

    Yes, you must pay federal income taxes on this money.

    You need to complete Schedule C to account for the income and claim any expenses you incurred as deductions. You attach the Schedule C to Form 1040NR, and transfer the net income (amount of Form 1099 minus the valid deductions) on Line #13 of Form 1040NR.

    You are also liable for state income taxes unless you live in one of six/seven states that have no income tax.

    You do not have to pay self-employment taxes (Schedule SE).

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