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I am filing as a dual status resident in 2014. I was a non resident alien for the first part of the year and a resident alien for the second part.

I received a 1099-misc for income earned throughout the year. Is this a problem in terms of getting a green card, etc.?

I read that this is deemed self employment income. I also read that it is not subject to self employment tax while a resident alien. Is this the case?

If so, do I record self-employment tax on the 1040 for only the income earned after I became a resident? Do I just report the net income earned while a non resident on the 1040, with no calculation for self employment taxes? In other words, is this income treated differently for the two periods?

Can I continue receiving this income this way while on opt? I was on opt and post opt while receiving this. I will be activating my H1B visa soon.

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    "I also read that it is not subject to self employment tax while a resident ALIEN. Is this the case?" This does not sound right; nonresident aliens generally don't pay self-employment/Social Security taxes while resident aliens do. Self-employment income is reported on Schedule C of Form 1040 and the self-employment tax computed on Schedule SE. – Dilip Sarwate Apr 4 '15 at 12:43
  • @DilipSarwate non-resident aliens most certainly pay SE taxes. irs.gov/instructions/i1040sse/ch01.html#d0e182 – littleadv Apr 4 '15 at 18:23
  • "I was a non resident alien for the first part of the year and a resident alien for the second part." Why do you think that? – user102008 Apr 6 '15 at 23:44
  • @littleadv: "non-resident aliens most certainly pay SE taxes" Right, except for nonresidents in certain statuses who are exempt from FICA and SE tax. And nonresident F1 (OP said he was on OPT) is one of the statuses that are exempt from FICA and SE tax. – user102008 Apr 6 '15 at 23:46
  • @user102008 nope. Only with regards to the work done in student capacity/OPT. Since he's getting 1099 before, during, and after the OPT - this is not related to his being a student, and as such not exempt from FICA. – littleadv Apr 7 '15 at 3:22
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I'm assuming you got the 1099-MISC for employment/contracting work. If this is something else - please elaborate.


I received a 1099-misc for income earned throughout the year. Is this a problem in terms of getting a green card, etc.?

If you were/are in a status that forbids/limits employment then yes, this may trigger some questions when you apply for green card. If you're post OPT or on H1B - you are most definitely not allowed to have self-employment/contractor income.

I read that this is deemed self employment income. I also read that it is not subject to self employment tax while a resident alien. Is this the case?

I'm guess you're a student. Students are exempt from FICA taxes when they're employees on campus/CTP/OTP. If you got 1099 - you're not employee, so I don't think the exemption applies. You have also likely gotten it from an employer other than your OPT employer, which also negates the exemption.

In other words, is this income treated differently for the two periods?

No.

See instructions to Schedule SE for more details and check your country's tax treaty with the US for exceptions.

Can I continue receiving this income this way while on opt? I was on opt and post opt while receiving this. I will be activating my H1B visa soon.

From immigration standpoint? No. This is trouble.

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