Income Tax on F1-visa while on OPT

06shreyanskjani

Hello,
I'm a non-resident currently in the United States on an F1 visa. I have questions about tax forms and filing requirements while on OPT. I'm a citizen of India. As an OPT holder, I'm allowed to work as an independent contractor/freelancer during the first year of my OPT, and I would need to understand taxation during this period. I have stayed for less than five years in the US, so I'm not considered a resident.

I have a question related to my income as an independent contractor. The company made me fill out Form W-8BEN. They said I'm not eligible to fill out a W-9 as it is for US residents. Since I could not fill out Form W-9, they will not be able to issue any kind of 1099.

Can I report my income directly to the IRS without any 1099? If so, what forms should I use to file my taxes? Also, what would be the tax structure for a non-resident independent contractor

P.S.: I will begin working as an independent contractor in September 2024 and report my income when I file the returns before April 15, 2025. I'm asking this question to get clarity and not jeopardize my immigration status in the US.

KristineS

Hi shreyanskjain06,

Thanks for writing in with your question.

According to the IRS, "You must file a return if you are a nonresident alien engaged or considered to be engaged in a trade or business in the United States during the year."

Income can be reported to the IRS even if you don't a tax form showing the income.

You'll most likely need to file Form 1040-NR, U.S. Nonresident Alien Income Tax Return, if you have income subject to tax. Form W-8BEN is used for foreign persons subject to U.S. tax at a rate of 30% on various income sources. In addition, you may need to review information to understand if your situation falls under U.S. Tax Treaty guidelines, which is outside the scope of our services we offer. Here are two resources for you to review:

Instructions for Form 1040-NR, and

Publication 519, U.S. Tax Guide for Aliens

FreeTaxUSA software does not support Form 1040-NR so you will need to find other tax preparation software or consider hiring a tax preparer to help you file a 2024 tax return.