[knayak]

Hi,

I am currently a student on an F-1 visa in the state of Massachusetts and I started my studies in September 2011. I have verified that I am a non resident alien based on my citizenship and based on my stay in the US. During the year of 2012, I was a full time student at a university in Massachusetts and I received the following income:

1. Monthly stipend from my university for which I received a W-2
2. I worked in New York during the summer of 2012 in a paid internship for which I received another W-2
3. I found a full time job to join after my studies and after I signed their offer letter, I received a check for my signing bonus and I received a 1099-MISC for the signing amount indicating blank amounts for Federal Income tax withheld, State tax withheld and State income. My employer is based in Virginia and the State (Box 17 on 1099-MISC) is mentioned as VA

I want to know how I should include my income in my tax returns?
Should I pay federal taxes on income from 1099-MISC if I am non-resident alien?
Or is this classified as self employment income for which tax is exempt for non-resident alient?

Should I pay state taxes for income from 1099-MISC? State tax withheld is blank in the form and hence I don't know if I should file it. If I should, with which state should I file it and how this income should be classified?

[AtlantaTaxExpert]

You should file Form 1040NR and Form 8843 as a non-resident alien. The receipt of the Form 1099-MISc does NOT change your visa status, but it IS taxable income.

You will need to submit Schedule C with Form 1040NR to properly report the Form 1099-MISC income. However, you are STILL EXEMPT from self-employement and FICA taxes, so do NOT submit Schedule SE.