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Can Opt Student work as 1099 being on OPT Extension ?
HI to all GURUS,
I came to US for my master in Computer science in 2006 in NJIT, I graduated on 20 th dec 2007 , So I got my OPT in Jan 2008, I applied for my H1 but didn't got it!! So then I applied for my OPT extension (17 month extension) which starts from jan 2009 for 17 months. I know that OPT student can work on 1099 as a self-employed , but I just found on my university website that "Self-employed work for hire status is not acceptable for OPT students who got 17 month extension" ( I am on extension), so now I have following questions: [1] Does 1099 and self-employed means the same?? [2] can I work on 1099 being on OPT extension (is not just OPT)?? [3] what TAX I have to pay if on 1099? do I have to pay SSN or other TAX which a person on 1099 other than OPT student has to pay?? [4] as a student on OPT , the Tax on W2 and Tax on 1099 are same? I mean is there any differences in TAX for OPT student? OR do I have to pay same tax regardless of being on W2 or 1099?? [5] For OPT student does being on W2 or 1099 have any effect in getting the TAX return?? I mean an OPT student on W2 gets more TAX return than student on 1099 or vice versa?? I am really looking for some quick answers from all gurus, any help will be appriciated!! Thanks in advance... Thanks Ushir |
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On F1/OPT you are exempt from FICA (and self employment taxes) for 5 years. So it will not make any difference if tax if you get W2 or 1099-misc. An employee gets W2 and an independent contractor gets 1099-misc. Read: Your U.S. Tax Return: W2 vs 1099-Misc: Employee vs Independent Contractor. |
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Ushir:
MukatA has is right, but so does the university. Under current visa policy, you are NOT supposed to be employed as an independent contractor (which has the effect of you being self-employed). But since you are NOT liable for Social Security or Medicare taxes, you are also NOT liable for self-employment taxes, so, tax-wise, there is initially NO DIFFERENCE between getting a W-2 or getting a 1099. Now, you WILL have to file a Schedule C with a Form 1040NR instead of the simpler Form 1040NR-EZ, but that can work to your advantage, because you can claim certain work expenses as deductions that you CANNOT claim as a W-2 employee. The result would be that you would pay a lower tax. |
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