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Joe_Black · Mar 13, 2009, 04:17 PM

Hi,

I am currently on F-1 student OPT in Atlanta, GA. I am a citizen of China.
-I first came into US as an J-1 student on Jan, 2006 and changed to F-1 on Dec, 2006 (I went back to China to change my status)

In 2008, I worked as OPT student almost the whole year. I got my 1099-MISC form. All my income are showed up in box 7 (Nonemployee compensation for 23310).

Based on my understanding, I should file Form 1040-NR. I have a couple of questions:

1. Form 1040-NR (if I am right), which line should I put my "Nonemployee compensation" from 1099-MISC on? Line 8 or line 20 or somewhere else?

2. Do I qualify for any tax treaty benefit?

3. Also any deduction? My occupation is IT consultant. My employer said any expense related to computer can be filed as deduction. I work at home sometimes. They also told me I can deduct part of my apartment rent and electric/phone bills. Is that ture?

4. Do I need to file 1040NR-EZ as I am single and no dependents?

5. I think I need to file Schedule A (1040NR), maybe 2106-EZ with it, is that right?

6. Which form else do I need to file? Form 8919 & 8843?

Thank you in advance. I would really appreciate ANY help.

MukatA · Mar 14, 2009, 02:05 AM

1. You will report this income on schedule C or C-EZ (Form 1040). You will not pay SE tax.

2. Yes

3. Job or business related expenses can be deducted on schedule C.

4. Yes, with Form 8843

Joe_Black · Mar 14, 2009, 02:37 PM

Originally Posted by MukatA

1. You will report this income on schedule C or C-EZ (Form 1040). You will not pay SE tax.

Thank you for your reply.

I am confused here.
Do I need to file Form 1040 with schedule C or 1040NR with schedule C?

AtlantaTaxExpert · May 6, 2009, 01:02 PM

File Form 1040NR with the Schedule C.

IntlTax · May 8, 2009, 06:10 AM

You can only deduct the computer and a portion of your apartment if exclusively used for business purposes. If partially used for personal purposes, then nondeductible.

AtlantaTaxExpert · May 8, 2009, 12:08 PM

IntlTax:

I agree with your comment about exclusivity when it applies to the APARTMENT.

However, you can use the compuer for BOTH business and personal use. You just need to properly pro-rate the usage between personal and business, then deduct ONLY the business percentage when the computer is depreciated over five years.

IntlTax · May 8, 2009, 12:21 PM

Agreed. And if the business use of the computer is less than 50%, special depreciation rules apply.

AtlantaTaxExpert · May 8, 2009, 12:57 PM

Agree with the special depreciation rules, but that is a bit too technical for this forum.

IntlTax · May 8, 2009, 01:01 PM

I don't understand why it is too technical.

AtlantaTaxExpert · May 8, 2009, 01:02 PM

It's NOT too technical for you, me, TTE, Five Rings, MukatA, etc.

It IS too technical for everyone else who uses the forum. :-)

IntlTax · May 8, 2009, 01:05 PM

Treaties seem pretty technical to me. More technical than depreciation.

Five Rings · May 9, 2009, 03:37 AM

Well wait a minute.

Since this taxpayer is here under F-1 status doesn't he get $5,000 off under US/China treaty Art. 20(c)?

AtlantaTaxExpert · Jun 12, 2009, 01:19 PM

Yes, he IS entitled to that treaty exemption, something I failed to address.

Good catch, Five Rings!