[dr8]

Hi,

I'm an international student holding F1 visa currently on OPT. I was working full time but recently quit my job and looking to start working on contacts. I went through few forums and understand that 1099 form would be required for tax payments (quarterly).

My concern is, I'm thinking about starting self work from, lets say, end of May 09 and will be working like that till October 15th 09 approx. After that I'm planning to head back to my home country. So how do I calculate taxes on my 1099 and how can I later on file for returns without being present in US?

I'm specially concerned about returns as I've had tax withheld from my employer till May 09 and they mistakenly withheld my social and medicare taxes.

Thank you in advance for your help/comments.

[AtlantaTaxExpert]

Since you quit, it is unlilely you would have much luck getting the FICA (Social Security and Medicare) taxes back from your employer, but you have to try. Contact your employer, explain that the FICA taxes were improperly withheld, and ask for a refund for 2008 and 2009. If they say no, TRY to get the refusal in writing, as the refusal letter should be submitted with the Forms 843 and 8316.

As for the estimated taxes for the Form 1099, I would not worry about that, because it is likely you OVER-withheld while on your PT job, and those taxes should be sufficient to cover your tax liability for the Form 1099 work, since you are NOT liable for self-employment taxes.

[dr8]

Thank you for your advise. I'd see if I can ask my employer to issue such a letter.

I just wanted to confirm if I understood correctly, as self-employed contractor on F1 OPT I don't need to file taxes, per your last comment?

Thanks again.

[MukatA]

If your total withholding for 2009 is more than the tax on your 2008 tax return or the tax due is less than $1000, you do not need to send estimated tax payments.
Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

[dr8]

Thanks MukatA. I think I'll go through that post first, before asking any more questions.

Thank you AtlantaTaxExpert for your advise.