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MusicianP · Jul 22, 2009, 09:05 PM

Hi all-

I'm a new member here, and have a question about 1099-MISC tax form.

I'm actually on my student F-1 visa, during the year 2008, I have a part time job as a music instructor. The music school sent me a 1099-MISC and I have earned about under 3500 and which was documented in box 7. I have been living (with my F-1 visa) in the states over 8 years. Should I file my 1099-MISC form? I have heard that I don't have to pay any tax for my situation, is it true?

Thanks much for your help in advance.

MukatA · Jul 22, 2009, 10:50 PM

Since you have been living in the U.S. for 8 years, you must file resident tax return Form 1040.
You must file return if yourself employed income (1099-misc income) is $400 or more.

1099-misc income: You are self employed or independent contractor. You will report your income and expenses on schedule C or C-EZ (Form 1040). Then you put net income (or loss) on line 12 of Form 1040. This income is subject to SE tax at 15.3% (this is shown on line 57 of Form 1040). Half of SE tax is deductible on line 27 of Form 1040. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor

MusicianP · Jul 22, 2009, 11:04 PM

Thanks for your reply MukatA,

I just read throu the website, and it says-

"If you are an exempt individual, for example nonresidents on F1 and J1, your do not pay SE tax and need not do schedule SE"

So am I in the exempt individual then? What IF I didn't file my 1099, would I be in trouble?

Thanks

MukatA · Jul 23, 2009, 03:37 AM

No, you are no longer an exempt individual. You are not nonresident. You must file resident tax return.

MusicianP · Jul 23, 2009, 07:30 AM

Right, sorry I miss reading it. Now, for this year, I did not file my 1099, because I was told that I don't have to. What would happen to me? Or what should I do to let IRS know?

Thanks,

MukatA · Jul 24, 2009, 12:03 AM

File your 2008 tax return and pay the tax.

AtlantaTaxExpert · Jul 24, 2009, 10:06 AM

MusicianP:

What MukatA has told you is correct IF you intend to stay beyond they time you need to finish your degree. A F-1 visa has a normal time limit of FIVE years, which means, starting in the sixth year, you become a resident alien for tax purposes and you pay taxes just like a U.S. citizen. This means you would pay both income and self-employment tax on your 1099 income by filing Form 1040 with SChedules C and SE.

However, if you have been filing your Forms 1040NR with Form 8843 and continuing to maintain a "closer connection" to your home country, you CAN continue to file as a non-resident alien, in which case you would pay income tax on the 1099 income, but NOT pay the self-employment taxes.

So the key question is: How have you filed your tax return for the past three years?

MusicianP · Jul 24, 2009, 11:01 PM

Thanks AtlantaTaxExpert,
Last year I filed 1040EZ form. (I filed it online I think) I don't remember actually. This is the first time I have received 1099 form. For past couple of years, I only work in school, I have never had to deal with 1099 forms...
Thanks for all the help, I really appreciate it.

AtlantaTaxExpert · Aug 4, 2009, 08:46 AM

If you filed Form 1040EZ for 2008, then you will need to file Form 1040 with Schedules C and SE for 2009 to properly account for the Form 1099 income.