Hi,

I have some tax questions and it seems like you guys are experts


- I am a resident of Germany
- I entered the US as F1 in 2010
- I left F1- Student in 2012.
- I regained F1 Status in 2013.
- I graudated in 2014.
- I am currently a self-employed consultant and thus receive my income free of tax.


As far as I know, these statements are true, but would like consideration from your side:


- I am not liable for FICA taxes.
- I do not have to make estimated quarterly tax payments, only at the end of the year.
- I only have to file a 1040-NR with Schedule C for my self-employment income
- I can not claim any benefits from a tax treaty with Germany


Thank you very much

You are correct about FICA (self-employment, since you are an independent contractor) tax: you ARE exempt from this tax through 2014.

I THINK You ARE liable for federal INCOME tax, but are entitled to a $9,000 treaty exemption for 2014. HOWEVER, I cannot access the treaty, so it nay have expired.

Do I have to pay quarterly estimated tax payments?

Though it is not a bad idea, it is not required the FIRST year you work as an independent contractor.

Are you referring to the exemption in 1040-ES?


http://www.irs.gov/pub/irs-pdf/f1040es.pdf


Because doesn't it only apply if I was a resident alien for the past?

Your status as a non-resident alien is irrelevant. The non-discrimination clause in the tax treaty dictates you be treated the same as a U.S. citizen.

For the purpose of estimated payments? I ask because the 1040ES-NR version does not have such exemption provided.

Yes, the safe harbor still applies for the first year.

Oh, I didn't even know about the safe-harbor rule. Thank you so much!

Glad to help.

Remember that even though you have the safe harbor, you DO have to pay the tax come 15 April 2015, and it may be a considerable sum, so making estimated payments for 15 Sep 14 and 15 Jan 15 is still a good idea.