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    sid.0987's Avatar
    sid.0987 Posts: 2, Reputation: 1
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    #1

    Aug 19, 2010, 08:34 AM
    1099 for f1 students
    I am an Indian student on an F1 visa. I have been working for a company on a CPT which would expire at the end of the summer period (it was a summer internship). The company has offered me to work for them on 1099 as an independent contractor for the Fall semester(because I couldn't get any CPT extension) and would be willing to hire me on a full-time basis after 3 months after I graduate. The pay would be only $15 but, I don't want to miss the opportunity of getting hired on a full time basis after my graduation.
    Is it legal for me to work as an independent contractor? Also how much taxes I would end up paying (I live in Arizona)?

    Any help is highly appreciated..
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Aug 19, 2010, 09:29 AM
    Sid:

    If the money being earned is needed to pay expenses and meet survival requirements (food, shelter, transportation), the USCIS will not object to you working under the Form 1099, especially the company had already employed you on a CPT in a field related to your field of study.

    You will need to file Form 1040NR with a Schedule C to report the Form 1099 income.
    sid.0987's Avatar
    sid.0987 Posts: 2, Reputation: 1
    New Member
     
    #3

    Aug 19, 2010, 09:37 AM

    Thanks for your response!

    I contacted International Students Programs & Services at my university who told me that it is a serious violation of federal law. They told be being an International student, I am allowed only to work under CPT and OPT and there is no other clause. I personally feel that they don't give proper guidance to Int. students on such issues and are too much inclined towards Dept. of Homeland Security. And immigration issues.
    The money I would be earning is very important to meet my expenses and also to secure my long-term future with the company. Do you think I should still go ahead with it? Would I be guilty of violating any federal law?

    Thank you in advance!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Aug 19, 2010, 10:46 AM
    I stand by my earlier guidance. While it IS a technical violation of your visa, it is NOT a serious violation if the job is needed to meet ongoing expenses associated with attending college.

    If you want specific guidance, call the USCIS direct and ASK. Be sure to specify that you are working to meet survival needs.

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