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

    Nov 9, 2007, 02:46 PM
    CPT (F 1 Visa) independent contractor employment - approved by university
    Hello,

    I am an international student under F-1 Visa status. I am interested in working for a company under part-time CPT. The employer however is not ready to give me a W-2. They want me to work as an independent contractor (1099 basis).

    I had this employment approved by my university. My form I-20 also reflects that I am allowed to work for this employer. However, I am not sure if (as an international student) I am allowed to work as an independent contractor. I do not want to get into trouble over this. Please let me know if it is legal for me to work with this employer. Also, how do I report my taxes? Which form do I fill?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Nov 9, 2007, 08:05 PM
    I answered your question via email. Did you get it?
    skgowd's Avatar
    skgowd Posts: 2, Reputation: 1
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    #3

    Nov 10, 2007, 11:48 AM
    Yes.. I received it. Thanks!!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Nov 13, 2007, 09:17 AM
    Glad to help!
    raj83168's Avatar
    raj83168 Posts: 12, Reputation: 1
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    #5

    Jan 27, 2008, 01:03 PM
    Please forward me that email too, I am in the same situation :((
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #6

    Jan 28, 2008, 02:10 AM
    You can work as independent contractor. It won't make any difference to you since F1 (for 5 years) and OPT period are exempt from FICA taxes.
    The Texas Tax Expert's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
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    #7

    Jan 28, 2008, 06:43 AM
    We've answered this many times before. It is an immigration question, not a tax question and I don't see any qualified immigration attorneys on this site.

    However, you should check with an immigration attorney because the visa status does not permit self-employment and technically that is what you are engaging in.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #8

    Jan 28, 2008, 01:36 PM
    I agree with TTE.

    While it makes no difference tax-wise whether a F1 student works as a independent contractor or an employee, it IS a violation of the visa.

    But again, it is the COMPANY's (and, by extension, the UNIVERSITY's, since they approved the job) violation, not the student's. The student has little, if any, choice, in this issue. If they protest too hard, they get fired or, at best, are NOT offered a job or sponsored for the H-1 visa by the company at the end of the OPT period.

    This is another case where either some consistent enforcement of the rules by a U.S. government agency OR, failing that, a change in the rules, would fix this problem!
    Karayantr's Avatar
    Karayantr Posts: 3, Reputation: 1
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    #9

    Sep 17, 2009, 01:06 PM

    OK I have the same problem too right now, I am eligible to work off campus under cpt but the employer wants to sign me as independent contractor, so how can I do this without being illegal or at least just a little illegal, I really need help, I don't want to get in trouble with immiration, taxes are not big deal, I can fill forms, etc, whatever I need to fill
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #10

    Sep 17, 2009, 01:15 PM
    As noted in my earlier posting, you really have no choice in the matter, and neither the IRS nor the USCIS (who ARE aware of these facts of life) will hold it against you.

    So accept the position as an independent contractor, and file the Form 1040NR with the Schedule C (but NOT Schedule SE).
    Karayantr's Avatar
    Karayantr Posts: 3, Reputation: 1
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    #11

    Sep 17, 2009, 01:17 PM

    Thanks a lot for the quick reply, so you telling me I should just tell my scholl the employer wants to hire me as independent contractor not as a emploee, and then just fill the forms that you mentioned, and you think there is not going to be a problem, not for myself at least?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #12

    Sep 17, 2009, 01:18 PM
    That is correct!
    Karayantr's Avatar
    Karayantr Posts: 3, Reputation: 1
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    #13

    Sep 17, 2009, 01:26 PM

    Thanks a lot for your help
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #14

    Sep 21, 2009, 10:50 AM
    Glad to help!
    grajkumar's Avatar
    grajkumar Posts: 1, Reputation: 1
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    #15

    Sep 2, 2010, 11:59 PM

    Hi,

    Am Rajkumar
    Am planning to come to US this year end or next.
    Its on work-study program i.e F-1.


    My main concern is to work than study.

    Can anyone suggest me in detail.

    I will be thankfull.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #16

    Sep 3, 2010, 02:47 AM

    On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return Form 1040NR or 1040NR-EZ and Form 8843. Your income is not subject to FICA taxes but you must pay federal and state income taxes. On your income you will get deduction based on tax treaty between the U.S. and your country. If from India, as per tax treaty, you will claim standard deduction of $5,700 instead of itemized deduction. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents
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