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    Jung's Avatar
    Jung Posts: 2, Reputation: 1
    New Member

    Apr 15, 2005, 04:22 PM
    F-1 Student with OPT 1099-MISC income
    I realize this is probably a lot of information but I've been on the IRS website multiple times and CANNOT figure out whether I owe taxes:

    1. I am currently on an F-1 visa for graduate school in Washington, D.C.

    - I arrived in the U.S. in Sept 97 on an F-1 visa for boarding high school.
    After graduating from high school in May 99, I received another F-1
    visa for 4 years for college (Sept 1999 to May 2003) I did a
    Semester abroad during my junior year and was out of the U.S. for
    Approximately 7 months from May 2001 to January 2002.

    - From September 2003 to May 2004, I was on an Optional Practical Training for approximately 9 months. Apart from my semester abroad and my vacations, I have been in the U.S. continuously. Other
    Than my OPT period (to be explained below), I held no jobs except sprodic on-campus employment. Am I definitely considered a resident for tax purposes?

    2. While I was on my OPT, I worked at a thinktank in D.C. for
    Approximately 9 months. I received a stipend (which was provided to me under a 1099-MISC instead of a W-2). For the year 2004, the total amount I received was $7,750 (which was why I didn't think I originally had to file because it was under the $7,950 filing amount) No taxes were withheld on this amount: do I owe social security and/or DC resident taxes even if OPT income is generally exempt for students?

    3. I am a citizen of the Republic of Korea. If I do have to pay taxes, Do I qualify for any tax treaty benefit?

    4. Given that I will not probably not make the filing deadline, do I
    Need to be worried about the penalties to be charged?

    Thank you in advance. I would really appreciate ANY help that people are willing to provide regarding this issue.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert

    Apr 15, 2005, 08:15 PM

    1) Since you were on a F-1 visa for all that time, you were considered an "exempt individual". The time under F-1 visa does not count for the Substantial Presence Test. You must file as a nonresident alien using Form 1040NR, using Schedule C to report the Form 1099-MISC income and deduct any expenses associatd with earning that income. You also need to file Form 8843 to account for your days under the F-1 visa.

    2) Because you are a nonresident alien, you are exempt from Social Security and Medicare taxes or self-employment taxes. For this reason, do not file Schedule SE. However, you cannot claim a standard deduction, only the itemized deductions allowed on the Schedule A that is part of the Form 1040NR.

    3) Under the tax treaty with the Republic of Korea, the first $2,000 of any income earned is exempt from taxation by either the U.S. or any state governments.

    4) It looks like you will owe some taxes, and therefore will owe a late payment penalty, but it will not amount too much. Your total taxable income is not more than $2,650, which means your tax is about $265. The late fees and interest should not exceed $5.

    5) If DC has an income tax, you may owe them as well, though, again, it will not be much. The $2,000 tax treaty exemption applies to the DC taxes as well.
    Jung's Avatar
    Jung Posts: 2, Reputation: 1
    New Member

    Apr 17, 2005, 09:39 AM
    Thanks and further inquiry~
    Dear Atlanta Tax Expert,

    Thanks for your reply. I'm still having some trouble filling out my 1040-NR and was wondering if you could help me out. Even if my total income from my 1099-MISC of $7750 was earned on an OPT, do I still need to report this income even if I'm exempt from most taxes? (so this should be reported on line 21?) Given that I'm currently a graduate student on an F-1 visa, are there any more exemptions (other than the US-Korea tax treaty on line 22?) I can claim since I currently have no income and am paying tuition?

    You had mentioned that my total taxable income should not be more than $2650... how did you get to this figure? Basically, it seems like I shouldn't owe much taxes since I'm a student who received a one-time income from a 1099-MISC but the 1040-NR doesn't seem to reflect this.
    I filed for an extension given that I was unsure about the whole filing process.

    Thank you so much for your help. I really appreciate it.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert

    Apr 17, 2005, 05:07 PM

    You need to download IRS Pub 519. While you are at it, download the instructions for Form 1040NR. Read both of them throroughly.

    Other than the $2,000 exemption noted below and the $3,100 personal exemption (which is entered on Line 38 of Form 1040NR, there are no other exemptions. You cannot claim a standard deduction, but you CAN claim itemized deductions (like income taxes paid to DC from your paycheck and donations to charity).

    As noted, you will pay income taxes on $2,650 (this assumes you have NO expenses listed on Schedule C to further reduce the Form 1099-MISC income). Take the net income from Line 31 of Schedule C, subtract $2,000 and transfer it to Line 13 of Form 1040NR. Enter $2,000 on Line 22 and cite the US-Korea Tax Treaty on Item M, Page 5 of Form 1040NR.

    Go through the line-by-line instructions and try to fill out the Form 1040NR.
    The tax tables can be found in the Instructions for Form 1040NR.
    tsaikumar86's Avatar
    tsaikumar86 Posts: 2, Reputation: 1
    New Member

    Dec 28, 2009, 09:49 PM
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert

    Dec 29, 2009, 01:27 PM
    PLEASE do not post to old postings, as such posting generate emails to all the respondents.
    halimou's Avatar
    halimou Posts: 1, Reputation: 1
    New Member

    Mar 9, 2010, 05:37 PM

    Dear Atlanta Tax Expert,
    I need your help.Please. I worked last year for 3 weeks on my OPT (F1 student) before my work permit expires. Before beginning work, I applied for a social. I went back to the social the last day of my work which was the last legal day to work on my work permit, and the SS Administration told me that they cannot issue a social to me since it takes them 3 weeks to process it and when the time comes to issue it my work permit would have expired. So they gave me a paper stating that, and I have another paper which they gave me when I applied for a social. My employer gave me the whole money and considered me 1099. Now I have to file. What I have in mind is to request an ITIN and in the same time declare 1040 NR and 8843. Is this correct? If yes, do I have to explain all that or just file tin request along with these?
    All that was in July 2009. Afterwards I went back home since my visa expired, and got a new one and come back also as a student F1. Does this add sthg to my filing requirement? Thanks a lot a lot a lot!

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