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    vivekdu's Avatar
    vivekdu Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Jan 16, 2008, 08:25 AM
    1099 from previous employer
    I started working for the new employer in 3rd week of November 2007. And my H1-B transfer is still in process - i.e.. Status pending. My previous employer did not pay me for the last 2 weeks, until Jan 2008. He sent me check for $2000 (from company's name). He says that he will issue me a 1099. So my question is is it leagal to accept it? Will it cause any problem for me in future? How can I file my taxes if I get a 1099?

    Thanks in advance.

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

    Jan 16, 2008, 10:22 AM
    Vivek:

    YOU really do not have a choice in the matter.

    If you get paid under a W-2, you can file a normal tax return (Form 1040NR-EZ).

    If you get paid under a Form 1099, you have to file a Schedule C (but NOT Schedule SE because you have not yet converted to H-1B) with Form 1040NR.

    Working under Form 1099 is a technical violation of BOTH your F-1 and H-1B visa In my opinion. However, YOU DID NOT COMMIT THIS VIOLATION!!

    Your employer committed it.

    Do not worry about it; the IRS does not care about your visa status. Their only concern is the payment of the taxes.

    In my opinion, if ICE/USCIS is concerned about this violation, they will go after the employer, NOT YOU.
    vivekdu's Avatar
    vivekdu Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Jan 16, 2008, 12:59 PM
    Thanks for your quick answer ATE.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 16, 2008, 02:47 PM
    Glad to help!
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