Dear Atlanta Tax expert,

I am a F1 student on OPT (expires Jan 07), I am going to join a company by next month, which has already filed for my H1. I am right now working short term for a company which is going to pay me till the time I join the new company I mentioned before. They are going to provide me with a 1099. My questions is what forms do I need to fill for that company. I am not sure because they are not cutting any taxes, I need to take care of it myself later in the year. Can you please guide me if I need to fill any forms like W-9 etc.

Thank you

Victec

Victec:

No W Forms are needed with your current if you are getting paid with a Form 1099-MISC.

You will have to file Form 1040NR with a Schedule C.

Due to your F-1 visa status, no self-employment taxes will be due.

How much 1099 income are we talking about, and what is your country of origin?

Thank you for your response, we are talking about around 5000 USD, and my country of origin is India. If I am correct the W9 form is a request for TIN by my employer for his tax payment. Now since I am a Non resident Alien I think in my case it would be W8. This form I need to give to my employer who is the requester and not the IRS, so it is more like a tax pyment form for him. Please do correct me if I am wrong. Do also let me know if the W8 is still necessary on my or my employers part. Thank you.

Victec

The W-8 is necessary for your employer.

Since the income under the Form 1099 was earned while on F-1 visa status, it is NOT subject to self-employment taxes. So far, you will owe NO yaxes at all, because the $5,000 in earned income is UNDER the standard deduction and personal exemption amounts.

Thanks again, well I am getting only 5000 from this company for now, and then as I said I am joining another company, and I believe they will take care of my taxes so doesn't the 5000 dollar on adding up with my other salary I get become taxable at the end of the year? Is there any way my new company can findout if I have worked for any other company other than theirs, will doing taxes for me?

Victec

Victec:

Your are correct that the $5,000 will be added to your second salary for tax purposes.

The first company should send you a Form 1099-MISC; be sure they have your address. Even if you do not get the Form 1099-MISC, you are obligated to report the $5,000 on Schedule C.

I am again back with another doubt, I was reading the instructions for W8 and I read the following:
" Nonresident Alien Individual
For income tax purposes, "nonresident alien individual" means an individual who is neither a U.S. citizen nor resident. Generally, an alien is considered to be a U.S. resident if:

The individual was a lawful permanent resident of the United States at any time during the calendar year, that is, the alien held an immigrant visa (a "green card"), or
The individual was physically present in the United States on:
(1) at least 31 days during the calendar year, and
(2) 183 days or more during the current year and the 2 preceding calendar years (counting all the days of physical presence in the current year, one -third the number of days of presence in the first preceding year, and only one -sixth of the number of days in the second preceding year). "

I have been in US since Jul 2003. So does that eman I am a resident alien now. I have never paid my taxes as a resident alien. Can you please clarify on that because that would mean I would have to fill a W-9 instead. Thank you.

Victec

Victec:

Your F-1 visa status makes you a non-resident alien for 2006.

In 2007, you will be a dual-status alien, unless you are married, in which case you can choose to be treated as a resident alien.

In 2008, assuming you are still in the U.S. you will be a resident alien.