[ste84ven]

Hi,

First, I want to express how glad am I that I found this website and this forum particularly. This is what I really need now. Hopefully someone can help me with my tax situation. I went to H&R Block, and they almost have no clue on my current situation. Here's my case:

I am an international student from Indonesia, started college at Pensacola, FL in 2003, graduated in May 2006. From June 2006 - June 2007 I was working in San Jose, CA under OPT, and going back to school in FL for MBA from June 2007 - present.

Now, I'm faced with 2 source of income. My previous employer in CA gave me 1099-MISC for $18,000 -as self-employed, and my current employer in FL (I'm working on campus) gave me W-2 for $3500 with $200 federal income tax withheld. If I'm not wrong, I should be still considered as FL resident all along since I still have my FL ID even when I was in CA for a year.

How should I file my tax? I know that US and Indonesia have this treaty with $2000 tax exempt. How do I incorporate this in my tax? I've done some research, and it says that I have to file Form 8833 to claim this tax treaty. Is that true? Also, should I also file Form 8843 along with my Form 1040NR?

I would really appreciate your help.

Thanks,
Steven

[MukatA]

1. You will file nonresident tax return. You will get deduction of $2,000 as per tax treaty. You will also get itemized deductions like state income tax. You will also file Form 8843.
Read more on nonresident filing: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

2. You will report your 1099-Misc income on Schedule C (Form 1040). You can deduct your job related expenses on the form. Your income is NOT subject to SE tax.
How you will treat the 1099-Misc income, read: Your U.S. Tax Return: W2 or 1099: Employee or Independent Contractor.

3. No if you lived in CA for 2007, you will file only CA tax return.

[ste84ven]

How about form 8843 and 8833? Do you know anything about it?

Thanks.

[MukatA]

As written in my previous post, with your nonresident tax return you will also file Form 8843. You don't file 8833.

[ste84ven]

Ok, I just sent my Income Tax today. Thanks for your help MukatA. I really appreciate it.

Something bothers me though. Is it lawful for me, as an F1 student, to still work outside campus as a self-employed? My previous employer still asked me to help him in his business, and I'm still receiving payment from him. Since everything can be done online, I still keep this side job until now. Most likely he will send me another 1099-Misc for what I earned at the end of this year.

Thanks.

[MukatA]

If your previous employer's job was legal last year, then how can it be illegal this year?

[ste84ven]

My employer is still legal. What I mean is can I, as F1 student, still working for him? My OPT ended last year. I'm now going back to school as a full-time student for my master degree, so I'm not using OPT anymore now.

Thanks.