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    indianH1's Avatar
    indianH1 Posts: 1, Reputation: 1
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    #1

    Mar 13, 2006, 02:51 PM
    F-1 Opt to h1
    I was on my OPT from Jan 2005 till Oct 2005 in Texas. I switched to H-1 in October. I have received a 1099 for wages received under OPT and no federal tax has been withheld. Am I liable to pay federal tax when I am under OPT?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 13, 2006, 03:03 PM
    IndianH1:

    Yes, you must pay federal income taxes on this money.

    You need to complete Schedule C to account for the income and claim any expenses you incurred as deductions. You attach the Schedule C to Form 1040NR, and transfer the net income (amount of Form 1099 minus the valid deductions) on Line #13 of Form 1040NR.

    You are also liable for state income taxes unless you live in one of six/seven states that have no income tax.

    You do not have to pay self-employment taxes (Schedule SE).
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