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pinke_v · Jan 31, 2006, 07:22 PM

Hi,

I had asked a question previously about multiple sources of income and was helpfully told that I need to file just one form even though I had student income and OPT income during 2005. My question is slightly changed this time.

1. I realize that in addition to university assistantship income and OPT income, I also did some independent consulting work for a month last year. So I understand that I have to file form 1040NR-EZ as WELL AS form 1099-MISC?

2. In the 1099-MISC, do I have to pay SS & Medicare taxes? I was on F1 visa (OPT) at that time. The 1099 I received from the organization is Copy B (meant for recipient). So do I just send it along with my two W-2 forms (one from univ and one from OPT job)?

I cannot find any evidence that I should not have done independent consulting work (it was related to my Computer Science MS degree). Am I right?

Thanks for the help in advance.

AtlantaTaxExpert · Jan 31, 2006, 08:08 PM

Pinke V:

You can do the independent consulting work. I have several clients on F-1 visas who have done so with no problem with the IRS.

You need to file Form 1040NR (not 1040NR-EZ) with Schedule C. You will have to pay income taxes on the money, but not self-employment taxes (which is Social Security and Medicare taxes times two). The SE tax rate is 15.3% (which, again, you do NOT have to pay).

If you cannot figure out how to do these calculations, contact me at [email protected]. I can walk you through it or we can discuss my rates for me doing it for you.

pinke_v · Jan 31, 2006, 08:45 PM

Thanks a ton, Atlanta Tax Expert. Your help is invaluable! I will go through the instruction forms and contact you if necessary.