[imadthegreat]

Hi

I worked for a small company opt but they have given me a 1099 misc form and reported my income in block 7 (non employee compensation). This is how they have reported my income. $7000 on W2 and $18000 on 1099 MISC block 7.

Since I used my car for work can I claim car and truck expense in part II line 9 of schedule c. Plus how much should I claim. Standard rate is 48.5 cents per mile. If I write 1000 miles which I am sure I drove in 6 months then it would be a deduction of $4850. Do you think its appropriate with such less income.

I also had no cost of goods sold. So should leave part 3 of schedule c blank?

Also in section IV I have checked the box to "No" where it asks if I have another vehicle for personal use.

I am also planning to claim $5000 benefit because of being from Pakistan (treaty tax benefit).

Please let me know if I am doing something wrong.

Thanks
Imad

[MukatA]

You can claim your car business milage on schedule C. The commuting miles are not deductible that miles to travel from home to office and then back from office to home.

[imadthegreat]

Can I also claim tax treaty benefits? Do I have to file 1040 or 1040 NR?
I would also like to get continuing education credit. Since I pass substantial presence test can I do both. I mean claim education credit and tax treaty benefit.

Thanks
Imad

[MukatA]

If you have not completed 5-years on F1/OPT, you must file nonresident tax return. You will get exemption, deduction as per treaty and itemized deduction. Read about nonresident filing
Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

[AtlantaTaxExpert]

Imad:

Also consider business use of your laptop, cell phone and Internet costs. Do NOT go overboard, but these ARE legitimate expenses.