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Lancelot82 · Mar 8, 2012, 12:38 PM

I came to US as a grad student on F1 about 4 and a half years ago. I am holding F1 and working full-time (40hrs/week) as an employee of a university on my OPT period. I plan to start working as an independent contractor for a private company (8hrs/week) while continue working fulltime at the university.

As an independent contractor, I will be responsible for paying my quarterly estimated tax to both the IRS and to the state. The company told me to fill out a W-9 form to get my 1099 form for the quarterly tax payments. However, in this form there is a statement saying:

Foreign person. If you are a foreign person, do not use Form W-9.
Instead, use the appropriate Form W-8 (see Publication 515,
Withholding of Tax on Nonresident Aliens and Foreign Entities).

Is there a way to learn whether I ll be considered to be foreign or resident for tax purposes? Should I fill out W9 or W8?

Also, how does the quarterly tax payment thing work? Will the IRS send me 1099 forms quarterly and I will just send them a check and then file it on April?

Thanks and Regards!!

AtlantaTaxExpert · Mar 8, 2012, 01:09 PM

What was your date of entry on your current visa (month and year, please)?

Lancelot82 · Mar 8, 2012, 03:15 PM

09/2007

AtlantaTaxExpert · Mar 9, 2012, 08:04 AM

Your five-year exemption as a F-1 student ended on 31 December 2011, so, for 2012, you will be a RESIDENT alien for tax purposes.

Submit the Form W-9.

If you wait until 2013 to settle your tax debt, you CAN do so without penalty for 2012 ONLY because 2012 is your FIRST year working under Form 1099-MISC. If it continues, then you will need to make quarterly tax payments.

Lancelot82 · Mar 9, 2012, 08:55 AM

My fifth year is going to be completed on 31 December 2012. Do they consider 2007 (3 months) as a year too?

I signed a 6 month contract with the company so it will end on Sept.2012. So I think I do not need to pay quarterly. Can I file it with my University tax before April 2013 without any penalty and send a check with all the taxes?

I would like to thank you for your prompt response. I really appreciate it!

Lancelot82 · Mar 9, 2012, 08:56 AM

My fifth year is going to be completed on 31 December 2012. Do they consider 2007 (3 months) as a year too?

I signed a 6 month contract with the company so it will end on Sept.2012. So I think I do not need to pay quarterly. Can I file it with my University tax before April 2013 without any penalty and send a check with all the taxes?

I would like to thank you for your prompt response. I really appreciate it!

AtlantaTaxExpert · Mar 9, 2012, 10:01 AM

If you spend ANY part of the calendar year in the U.S. under a F-1 visa, it burns the ENTIRE year.

I actually had a client get off the plane at 10 P.M. on December 31st of a year to lose that year on her F-1 visa for being in country for only two HOURS.

Lancelot82 · Mar 9, 2012, 01:31 PM

Thanks a lot for the info! It helped a lot!

AtlantaTaxExpert · Mar 9, 2012, 01:35 PM

Glad to help!