Due to some family issues I had to return to India for unknown amount of time . For at-least next 6 months my current employer is ready to pay me as an individual contractor on 1099 , Once I return back I will be on W-2 . The employer is the one holding my H1B . Can I work on 1099 while I am in India ? Will I be violating any rules ? Should I get W-8EN instead of 1099 as I am working from India? I am sure I will be returning back later on , but not sure when . I was in US for 31 days of January returned to india on 2ndFeb and worked on W-2 till April 15th . Do I have to pay taxes for that ?

You have had four threads open about your tax problems, one of which ended with you biting the hand that tried to feed you.

I would suggest that you contact a US tax Attorney or CPA with a specific list of questions and get very specific answers.

@Judy

Not sure why you are saying " you biting the hand that tried to feed you" . I am trying to do the right thing .

When did you first arrive in the U.S. on your current H-1B visa?

Will you pay Indian income taxes on the income earned in India?

If you stay in India for the rest of 2013, a case could be made for you being allowed to file an expatriate dual-status return. However, if you return in 2013, you must file as a resident under the continuous presence policy IF you filed as a resident in 2012.

I was on H1B Since 2011 October although since 2008 I was on F1 visa.

I am thinking to pay entire tax as resident in US . If I am paying taxes in US I will be exempt from taxes in India .

Sorry but I think My question was more of from immigration standpoint if working on 1099 while on H1B will create any issue .

It MAY create an issue, as H-1B visa holders MUST be paid under Form W-2.

Suggest you post the question in the LAW Forum under Immigration Law.