Dear Tax Experts,


I am F-1 student from India on my OPT now. I have been in the US since August 2003.
So, my status has changed to Resident Alien for Tax purposes on January 1st 2008.
I have some questions. If you could kindly answer them, it will be of great help to me.

1. I did an internship last year and the company issued me an 1099-MISC for the income I earned working there(with the income reported in BOx 7). I also have
A W-2 from working in the university. My question is how would I have to include the 1099-MISC in the Tax return. Because the requirements for the 1099-MISC say that it is for independent contractors.

2. I lived in Texas till September, and then moved to a different state and have been living in that state since then. I did not work or earn any income/wages in the new state till the end of the year. So, basically all my income is from working in Texas through September. Does, this help me in any way to get more refunds or pay less taxes. And also do I need to an state tax form?

3. Since, I am considered as resident alien now for tax purposes,can I do the taxes online through TaxAct.com or TurboTax.com or should I do 1040NR or 1040NR-EZ?

4. My university issued a 1098-T for qualified tuition expenses. Can I use this while doing my Taxes to claim education credits?

Any help regarding this matter will be greatly appreciated.
Thanks.

1. If you receive 1099-misc, IRS treats you as a self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

2. You are a part year resident of the "different state". On the state return, you will report only the income earned while in the state. Your U.S. Tax Return: Working or Living in Two or More states

3. You will file Form 1040-EZ or 1040A or 1040.
4. Yes.

Quote:

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Originally Posted by MukatA

1. If you receive 1099-misc, IRS treats you as a self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

2. You are a part year resident of the "different state". On the state return, you will report only the income earned while in the state. Your U.S. Tax Return: Working or Living in Two or More states

3. You will file Form 1040-EZ or 1040A or 1040.
4. Yes.

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MuKatA,

Thank you for answering the questions.
I am still not sure about the 1099. I tried doing the taxes through TaxAct.com and got to the section for doing the 1099 and filling out schedule C. But the questions were based on me being an independent contractor owning a business. It was giving me questions like sales, expenses, operating costs etc.
But, I am a student who did an internship and not an independent contractor. And I obviously do not own a business.

So, how do I handle this scenario?

Thanks.

You must file schedule C or C-EZ.
You may send email to AtlantaTaxExpert at [email protected]. You can also get professional help from AtlantaTaxExpert.

Quote:

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Originally Posted by MukatA

You must file schedule C or C-EZ.
You may send email to AtlantaTaxExpert at [email protected]. You can also get professional help from AtlantaTaxExpert.

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Thanks for the help MukatA.