I am on a F-1 visa, on OPT working in NY. I began work in January this year. Prior to that, I was in college in PA, and graduated in December last year.

As part of my employment contract, I was awarded a signing bonus that was paid out to me in November last year. The income was reported on a 1099-MISC, with the figure in box 7.

I have 2 questions - firstly, what taxes should I pay on the amount and on which form should I file those taxes? Next, if I need to pay state/city tax on the amount, which state/city should I pay taxes to?

Thank you.

1099-misc (nonemployee compensation) income: You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040.
Normally this income is subject to SE tax at 15.3% but F-1 students are exempt from SE tax.
Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

You will also pay NY state tax but international students are not considered resident of the NY city so your income during F-1 and OPT should not be subject to city tax.

Thank you!

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Originally Posted by MukatA

1099-misc (nonemployee compensation) income: You will report your income and business related expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040.
Normally this income is subject to SE tax at 15.3% but F-1 students are exempt from SE tax.
Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

You will also pay NY state tax but international students are not considered resident of the NY city so your income during F-1 and OPT should not be subject to city tax.

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The bonus income (reported on Form 1099-MISC) income would be reported on Schedule C, but then the Schedule C income is transferred to Form 1040NR, not Form 1040, due to your NRA status.