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    helppls's Avatar
    helppls Posts: 4, Reputation: 1
    New Member

    Nov 19, 2005, 05:54 PM
    1099 and H1
    Thanks for your valuable help that you are giving to so many people.

    I need one help too.

    I am on H1. Can I work on 1099. Will this create any problems?

    Secondly. How may hours I can work on 1099 if I am allowed to?

    I am working 40/week on W2 with a consulting conpany on H1. I want to work on 1099 as independent contactor with another company too.

    Is it possible?

    Thanks for you suggestions in advance
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert

    Nov 22, 2005, 09:57 AM

    Until about a month ago, I would say work under the 1099. The IRS normally does not care as long as you file the correct forms and pay the approrpaite taxes.

    However, several people have posted notations from other forums that says you can only work for the company which sponsors you. I have not been able to confirm or deny this as a matter of immigration law. For this reason, I recommend to address this issue to Dr Carter at He is a tax advisor who specializes in non-resident alien tax returns.
    helppls's Avatar
    helppls Posts: 4, Reputation: 1
    New Member

    Nov 23, 2005, 09:10 AM
    No work on 1099
    Hello there,

    Thanks for your valuable suggestion. I figured out that we cannot work on 1099 when you are on H1B.

    BUt I have another question. I am working for a consulting company on H1B. Now they sent me to a client place where client is paying for my expenses of food and travel.

    Now can I accept the checks for these expenses directly from clent or I have to go through only my employer to get paid for this.

    If I go through my employer he says it will be very late while I get paid for it like two months after I submit the receipts.

    But if I give these recipts directly to my client then they are ready to pay within a week.

    But can I accept checks directly from them?

    Thank You for your great suggestions
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,818, Reputation: 846
    Senior Tax Expert

    Nov 23, 2005, 12:38 PM

    If the payments from the client are in fact reimbursements for food and travel expenses (for which you submit a claim backed up by receipts of what you actually spent), then theirs is an accountable plan.

    Accepting payments from such a plan does not constitute payment of income that must be reported to the IRS on Form 1099-MISC. This being the case, it is okay for you to get the payment directly from the client.

    Ask the client if they are going to report the check amounts to the IRS on Form 1099-MISC. If not, then it is definitely okay, as there will be no paper trail to show you received the money.

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