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    Tess1243's Avatar
    Tess1243 Posts: 3, Reputation: 1
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    #1

    Sep 23, 2010, 01:57 PM
    Taxes to be paid by independent contractor on OPT in Texas
    Hi all,

    I am working as a Independent contractor from June 2010. Am on my OPT at present. I am located in Texas. Can anyone please tell me what are the taxes to be paid and the process to pay them?

    By what time do we need to pay the taxes?

    Thanks.
    wnhough's Avatar
    wnhough Posts: 200, Reputation: 12
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    #2

    Sep 23, 2010, 11:45 PM
    QUOTE," . . . working as a Independent contractor from June 2010. Am on my OPT at present. . . tell me what are the taxes to be paid and the process to pay them? "----Generally speaking, as you can see, you,as a F1 visa holder, are not supposed to collect 1099. However, as you have your 1099, then you are not exempt from your Soc. Sec. Taxes,FICA Taxes. You nned to file Form 1040NR/ 1040 nr-ez with Schedule C and Form 8843 as a F1 visa holder.


    "By what time do we need to pay the taxes?"---Provided that the year of 2010 is your first year, when you are being paid as an independent contractor, thenyou won't get penalized for not paying your quarterly estimated taxes to both Federal and State government( if applicable).
    However, starting in 2011, you must file your quarterly estimated taxes using Form 1040-ES, filing on 15 April, 15 June, 15 September and 15 January 2011.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Sep 24, 2010, 01:00 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.

    You will report your 1099-misc income on schedule C or C-EZ (Form 1040) but you will not pay SE tax at 15.3%. That is you will not do schedule SE.
    Also if this is your first year of employement in U.S. you need not worry about paying estimated taxes. File your return and pay taxes on or before April 15, 2011.
    On your income you will get deduction based on tax treaty between the U.S. and your country. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents
    Tess1243's Avatar
    Tess1243 Posts: 3, Reputation: 1
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    #4

    Sep 24, 2010, 07:48 AM
    Comment on wnhough's post
    "Provided that the year of 2010 is your first year" - This is my first year of working on OPT. I was a student worker from Sep 2008 to May 2010. Does that effect? Do I have to pay the penalty?
    Tess1243's Avatar
    Tess1243 Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Sep 24, 2010, 07:49 AM
    Comment on MukatA's post
    "if this is your first year of employement in U.S" - This is my first year of working on OPT. I was a student worker from Sep 2008 to May 2010. Does that effect? Do I have to pay the penalty?
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