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    crazyrubu's Avatar
    crazyrubu Posts: 2, Reputation: 1
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    #1

    Mar 20, 2010, 02:13 PM
    Self-employment tax (on OPT) if 5+ years in US?
    This will be my 6th year of filing taxes; I filed my first US tax return in 2004. So I know I'm supposed to be using Form 1040 instead of 1040NR. I was also self-employed as a contractor in 2009, as I was in 2008, while being in OPT for both years. I didn't pay any self-employment tax in 2008, but then again I used 1040NR then. Do I have to pay self-employment tax for 2009 because I'm using 1040 this year?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Mar 20, 2010, 08:46 PM

    After 5 years on F-1, you will file resident tax return and pay SE tax at 15.3% of self employed income. Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor
    crazyrubu's Avatar
    crazyrubu Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Mar 21, 2010, 04:58 PM

    Thanks for your response! I was hoping I wouldn't have to, since I was still on my F-1 visa while I was working as a contractor and hadn't completed 5 years in F-1 until September 2009, which is when my contract position also ended and I started regular full-time under H-1B the following month.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    May 4, 2010, 10:03 AM
    Sorry, but your H-1B visa undercuts any argument for closer connection to home country, so the contract pay IS subject to the 15.3% self-employment tax.
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