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

    Apr 11, 2006, 02:48 PM
    1099-MISC income while on H-1B Visa
    Is it legal to have a 1099-MISC income while being on H-1 Visa? The income is derived from a web based business to while the individual is affiliated but not an employee of. The profit earned by him is reported on a yearly basis as a 1099-MISC that is sent to him by the company. Is this legal? Will this create any hurdles during the Green card processing?

    Thanks!
    vaya's Avatar
    vaya Posts: 55, Reputation: 1
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    #2

    Apr 11, 2006, 05:52 PM
    Well, is it legal for you to work there? As far as I understand H1 visas, the answer is no (I am no immigration attorney). Unless, it is the firm that sponsored your H1. It just chooses to give you 1099 instead of W2.

    In other words, it's not a question "is it legal to have the 1099-misc," but "is it legal to do that job that sends you the form."

    Vaya
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Apr 12, 2006, 08:20 AM
    As Vaya noted, we are not immigration attorneys.

    It is my understanding that earning money on the side that is NOT from the employer who sponsored the H-1B visa is not permitted.

    However, I believe that it is not stringently enforced.

    You DO have to report the income to pay the income tax, however. Failing to do so will get you on the IRS' bad side real quick.
    IBO's Avatar
    IBO Posts: 2, Reputation: 1
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    #4

    Apr 12, 2006, 01:55 PM
    Thanks for the response. I did file my taxes reporting my 1099-MISC income. I am just concerned if I continue to earn income this way outside of my H-1B sponsored employer, will I get into trouble with INS in any way. That is why I asked what the legal implications of such an endeavour are.

    Appreciate your reply on this.


    Quote Originally Posted by AtlantaTaxExpert
    As Vaya noted, we are not immigration attorneys,

    It is my understanding that earning money oin the side that is NOT from the employer who sponsored the H-1B visa is not permitted.

    However, I believe that it is not stringently enforced.

    You DO have to report the income to pay the income tax, however. Failing to do so will get you on the IRS' bad side real quick.
    vaya's Avatar
    vaya Posts: 55, Reputation: 1
    Junior Member
    		  
    #5

    Apr 12, 2006, 05:57 PM
    I would quit. I would not want to risk my green card or citizenship over few extra bucks.

    Vaya
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Apr 14, 2006, 09:07 AM
    I tend to agree with Vaya's assessment.

    Once you have that green card, you can earn as much money as you want in any way you want, as long as it is legal.

    Until then, risking your green card or citizenship for a little extra spending money is not real smart.
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