Ask Experts Questions for FREE Help !
Ask
    domer78's Avatar
    domer78 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 20, 2016, 07:55 PM
    Chinese Student $5k Wage Exemption
    I have an Chinese National employee on OPT F-1. As such, I excluded $5k from his W-2 wages subject to tax under the related tax treaty. Today I gave him his W-2 and he indicated that he also needs a 1099 from me for the $5k. Is this true? If so, what kind of 1099 would this be reported on? Seems as though if the wages are not on his W-2 that would be all I would need to do. Appreciate any help.

    Ed.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 20, 2016, 08:27 PM
    You are correct.

    Giving him a Form 1099-MISC for $5,000 would negate the effect of him getting the $5,000 treaty exemption and require adjustments on his Form 1040NR or 1040NR-EZ that, with just the W-2, would not be needed.
    domer78's Avatar
    domer78 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 20, 2016, 08:31 PM
    Thanks for the confirmation, that's what I thought as well.

    Ed.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 20, 2016, 09:04 PM
    Glad to help!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

F-1 chinese student and tax exemption for income through OPT [ 1 Answers ]

Hi Tax Expert, I am a F-1 student from China, and this is my 8th year under F-1 (a second degree). I had income through internship under OPT in 2008, which is above $5,000 and is reported in W-2 form. I have filed 1040NR-EZ 2008 tax return but was denied the $5000 tax exemption, as I result...

Tax exemption for a Chinese with F-1 visa interning under CPT during summer [ 2 Answers ]

Hi, I'm a Chinese student with F-1 Visa. Now I'm doing a paid internship under CPT in New York City. This is my first summer here in the US. Would anyone advise that whether I'm qualified for the tax exemption based on the US-China tax treaty regarding my current income? If so, how should I proceed...

Tax exemption for a Chinese J-1 visa in a company [ 3 Answers ]

Dear Tax Experts: I came to US with J-1 visa from China for a training program sponsored by AIPT in April. I am working as a visiting scholar in a company and my status is single and have no dependants. I filled out W-4 to state I am a non-resident alien when I began my training. The...

Tax exemption? A chinese got J1 visa from Canada to enter you.S [ 1 Answers ]

I am a Chinese, but I got my J1 exchange scholar visa to enter U. S from Canada (I have been living in canada for 6 years but am NOT an immigration in canada). The tax people said that my tax would be based on the canadian policy. Is that true? Am I eligible to tax exemption? Thank you.

Wage Garnishment and Head of Household exemption [ 9 Answers ]

I live in FL. I was contacted by a debt collector who has a judgement against me (news to me) - they are going to garnish my wages. This is from unsecured credit card debt. I know that section 222.11 of Florida statutes indicates that any person who qualifies as a "head of household" is...

View more questions Search