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    nambrot's Avatar
    nambrot Posts: 5, Reputation: 1
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    #1

    Sep 9, 2014, 01:08 PM
    F1 OPT nonresident alient self-employed
    Hi,

    I have some tax questions and it seems like you guys are experts


    - I am a resident of Germany
    - I entered the US as F1 in 2010
    - I left F1- Student in 2012.
    - I regained F1 Status in 2013.
    - I graudated in 2014.
    - I am currently a self-employed consultant and thus receive my income free of tax.


    As far as I know, these statements are true, but would like consideration from your side:


    - I am not liable for FICA taxes.
    - I do not have to make estimated quarterly tax payments, only at the end of the year.
    - I only have to file a 1040-NR with Schedule C for my self-employment income
    - I can not claim any benefits from a tax treaty with Germany


    Thank you very much
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Sep 9, 2014, 08:23 PM
    You are correct about FICA (self-employment, since you are an independent contractor) tax: you ARE exempt from this tax through 2014.

    I THINK You ARE liable for federal INCOME tax, but are entitled to a $9,000 treaty exemption for 2014. HOWEVER, I cannot access the treaty, so it nay have expired.
    nambrot's Avatar
    nambrot Posts: 5, Reputation: 1
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    #3

    Sep 10, 2014, 09:29 AM
    Do I have to pay quarterly estimated tax payments?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Sep 10, 2014, 10:27 AM
    Though it is not a bad idea, it is not required the FIRST year you work as an independent contractor.
    nambrot's Avatar
    nambrot Posts: 5, Reputation: 1
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    #5

    Sep 10, 2014, 06:08 PM
    Are you referring to the exemption in 1040-ES?


    http://www.irs.gov/pub/irs-pdf/f1040es.pdf


    Because doesn't it only apply if I was a resident alien for the past?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #6

    Sep 10, 2014, 07:45 PM
    Your status as a non-resident alien is irrelevant. The non-discrimination clause in the tax treaty dictates you be treated the same as a U.S. citizen.
    nambrot's Avatar
    nambrot Posts: 5, Reputation: 1
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    #7

    Sep 10, 2014, 08:01 PM
    For the purpose of estimated payments? I ask because the 1040ES-NR version does not have such exemption provided.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #8

    Sep 10, 2014, 08:10 PM
    Yes, the safe harbor still applies for the first year.
    nambrot's Avatar
    nambrot Posts: 5, Reputation: 1
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    #9

    Sep 10, 2014, 08:15 PM
    Oh, I didn't even know about the safe-harbor rule. Thank you so much!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #10

    Sep 11, 2014, 03:57 AM
    Glad to help.

    Remember that even though you have the safe harbor, you DO have to pay the tax come 15 April 2015, and it may be a considerable sum, so making estimated payments for 15 Sep 14 and 15 Jan 15 is still a good idea.
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