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    aleles's Avatar
    aleles Posts: 35, Reputation: 1
    Junior Member
    		  
    #1

    May 3, 2016, 02:48 PM
    Co-owner income while on H4 visa, 1099?
    Hello,

    I'm a co-owner of a company and on H4 visa. Can my company pay me assuming I'm not doing any work for them and issue me 1099 with non employee compensation? If not, is there any other way to get paid?

    Thank you!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 3, 2016, 04:41 PM
    If you get paid under either Form W-2 and Form 1099-MISC, the IRS and the State Department will consider that earned compensation, and you will be in violation of your H-4 visa. The IRS will NOT care, but the State Department WILL care when they find out about it, which they will be cause the IRS WILL tell them.

    The ONLY way to receive compensation is as a passive/limited partner of a partnership (meaning that you do NOT work for the company, you only provide capital) or as a passive shareholder of a corporation. Then the income is INVESTMENT income and not in violation of the H-4 visa.

    You MAY want to consider getting permission to work from the U.S. State Department.
    aleles's Avatar
    aleles Posts: 35, Reputation: 1
    Junior Member
    		  
    #3

    May 3, 2016, 05:58 PM
    Thank you for the quick reply! How would the company report this income? Instead of 1099, should it be a K1 or something else?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    May 3, 2016, 06:02 PM
    The K-1 would be used by either the partnership or the corporation.
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